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Not necessarily applicable to Kickstarter but I thought this might be of use to less experienced HN readers. Tip of the day: When dealing with international o

Not necessarily applicable to Kickstarter but I thought this might be of use to less experienced HN readers. Tip of the day: When dealing with international orders of any magnitude always, always, always get paid via EFT (electronic funds transfer/wire transfer). Far safer than credit cards. Tip #2: Don't be too eager to ship. Give your bank time to fully "digest" the payment. The money showing up in your bank account isn't the end of the story. Tip #3: Get out from behind that desk and go meet your bank manager. When you receive a sizable payment. Ask about that payment from your international customer and how/if the funds can be rescinded. Under some circumstances and with some countries there are ways your customer could pull back funds even a year after the transaction took place. Tip #4: I hate to say it but I have scars to prove it: When it comes to international commerce you have to have your guard up all the time. I've dealt with many people all over the world and the vast majority are on the level. No issues. However, every so often someone shows-up who wants to take you for all he can. Tip #5: Come to think of it, you have to be guarded, period. I had a supplier take me for $12,000 a number of years ago. He was in Florida and simply evaporated. After much interfacing with police we learned he did this to a bunch of companies and bolted with anywhere between $100K and maybe even over $200K, never to be found. Tip #6: Business is a contact sport. You are going to get bloody every now and then. Price your products and services in order to be able to absorb a blow here and there or it will really hurt when it happens. And, as always, if it is too good to be true, stay the fuck away from it.

TillE 13y ago
"Tip #2: Don't be too eager to ship." Honestly, I'm surprised to hear that anyone's managed to ship their Kickstarter rewards within three months. I've backed a variety of projects (mostly books and software), and I think only once have I ever seen a physical product shipped within six months. Even t-shirts usually take a while.
OWaz 13y ago
What do you mean by “Give your bank time to fully "digest" the payment.”?
- robomartin 13y ago
  With international trade the payment doesn't necessarily end with the money showing up in your account. There are countries and circumstances that could result in money being pulled out of your account even a year later. I remember a situation with a payment from Greece where my bank basically said "you would be nuts to do it this way". I would not have known had I not taken the time to meet with the bank manager who reviewed the issues and guided me through the process of structuring a safe transaction. If I remember correctly it involved telling my customer to go to the bank and do a wire transfer with cash as opposed to writing a check. Details are fuzzy. I think I remember him saying that their banking system allowed them to recall the check up to a year later. All of the banks involved in that transaction would have to honor this and you would end-up on the hook for the money. Cash or a cashiers check used for the EFT would break that link and result in a solid transaction.

TillE 13y ago

"Tip #2: Don't be too eager to ship." Honestly, I'm surprised to hear that anyone's managed to ship their Kickstarter rewards within three months. I've backed a variety of projects (mostly books and software), and I think only once have I ever seen a physical product shipped within six months. Even t-shirts usually take a while.

OWaz 13y ago

What do you mean by “Give your bank time to fully "digest" the payment.”?

robomartin 13y ago
With international trade the payment doesn't necessarily end with the money showing up in your account. There are countries and circumstances that could result in money being pulled out of your account even a year later. I remember a situation with a payment from Greece where my bank basically said "you would be nuts to do it this way". I would not have known had I not taken the time to meet with the bank manager who reviewed the issues and guided me through the process of structuring a safe transaction. If I remember correctly it involved telling my customer to go to the bank and do a wire transfer with cash as opposed to writing a check. Details are fuzzy. I think I remember him saying that their banking system allowed them to recall the check up to a year later. All of the banks involved in that transaction would have to honor this and you would end-up on the hook for the money. Cash or a cashiers check used for the EFT would break that link and result in a solid transaction.