Getting Paid Internationally as a Freelancer: Complete Guide for Digital Nomads

Getting paid is the lifeblood of freelance work, but international payments add layers of complexity—currency conversion, fees, delays, and complications when you're not in your home country.

This guide covers every payment method available to international freelancers, the true costs of each, and strategies to maximize what you actually receive.

This guide is part of our Digital Nomad Banking Guide. For tax implications of international income, see our tax guide.

Quick Comparison: Payment Methods

The International Payment Problem

Hidden Costs of Getting Paid

When a client sends you $5,000, you might receive significantly less:

| Payment Method | Typical Cost | You Receive | |---------------|--------------|-------------| | International wire | 3-5% (fees + rate) | $4,750-4,850 | | PayPal | 4-5%+ | $4,700-4,800 | | Wise (local details) | 0.5-1% | $4,950-4,975 | | ACH (US to US equivalent) | 0-0.5% | $4,975-5,000 |

Annual impact: On $100,000 freelance income, the difference between methods can exceed $4,000.

Where Money Disappears

| Fee Type | Typical Range | |----------|---------------| | Sending bank fee | $15-50 | | Receiving bank fee | $15-30 | | Intermediary bank fee | $15-25 | | Exchange rate markup | 2-5% | | Platform fee (PayPal, etc.) | 2.9-5% | | Conversion fee | 0.5-3% |

Payment Method Deep Dive

1. Wise (Best Overall)

Wise transformed international payments for freelancers by providing local bank details in multiple currencies.

How it works:

1. Open free Wise account
2. Get local bank details (US, UK, EU, AU, etc.)
3. Give clients your local bank details for their currency
4. They pay via domestic transfer (no international fees for them)
5. Money arrives in your Wise balance
6. Convert to any currency at mid-market rate

Wise costs: | Fee Type | Cost | |----------|------| | Receiving money | Free | | Currency conversion | 0.35-1% | | Holding currencies | Free | | Bank transfer out | Free - small fee |

Example: US client pays $5,000

1. Client sends ACH to your Wise US details: $0 fee (domestic for them)
2. Money arrives in Wise: $5,000
3. Convert to EUR: ~$25 fee (0.5%)
4. Result: €4,700-4,750 (depending on exchange rate)

Compared to PayPal: ~$200 more in your pocket on a $5,000 invoice.

Wise local details available:

• USD (ACH routing + account number)
• GBP (UK sort code + account)
• EUR (Belgian IBAN for SEPA)
• AUD (BSB + account)
• NZD (bank details)
• CAD (transit + account)
• SGD (bank details)

2. PayPal (Convenient but Expensive)

PayPal is ubiquitous but expensive for international freelancers.

Costs: | Fee Type | Cost | |----------|------| | Receiving payment | 2.9% + $0.30 | | Currency conversion | 3-4% hidden markup | | Withdrawal to bank | Free (but after conversion) |

Total effective cost: 5-7% on international payments

When PayPal makes sense:

• Small payments where convenience matters
• Clients who only offer PayPal
• Dispute protection needs (rare for services)

When to avoid PayPal:

• Any significant invoice ($1,000+)
• Regular client relationships
• When you have alternatives

3. Payoneer (Best for Platforms)

Payoneer excels at receiving payments from freelance platforms and marketplaces.

Strengths:

• Direct integrations with Upwork, Fiverr, Amazon, etc.
• Multi-currency receiving accounts
• Business features

Costs: | Fee Type | Cost | |----------|------| | Receiving from platforms | Often free (platform pays) | | Receiving bank transfer | $0-$3 | | Currency conversion | 2% | | Bank withdrawal | $1.50-3 |

Best for:

• Upwork, Fiverr, Toptal payments
• Amazon seller payments
• Platform-heavy freelancers

4. Traditional Wire Transfers (Expensive)

International wire transfers are the default for large invoices but carry significant costs.

Typical costs: | Fee | Sender | Receiver | |-----|--------|----------| | Bank fee | $25-50 | $15-30 | | Intermediary | — | $15-25 | | Exchange markup | 2-4% | — | | Total | $25-50+ | $30-55 + 2-4% |

When wires make sense:

• Very large invoices ($10,000+) where percentage fees matter less
• Clients who can only send wires
• Using Wise to receive (eliminates most receiving fees)

Pro tip: Have clients send wires to your Wise account. Wise has competitive incoming wire fees and you avoid traditional bank's receiving fees.

5. Cryptocurrency / Stablecoins (Situational)

Crypto can be useful for specific situations but isn't mainstream for most freelancers.

Advantages:

• Fast (minutes vs. days)
• Low fees for large amounts
• Works where traditional banking is restricted

Disadvantages:

• Price volatility (use stablecoins)
• Tax complexity
• Client adoption limited
• Conversion to fiat costs money

Best stablecoins for payments:

• USDC (most mainstream)
• USDT (widely used, some concerns)
• DAI (decentralized)

Typical costs:

• Sending: $0.50-5 depending on network
• Receiving: Free
• Converting to fiat: 0.5-2%

When crypto works:

• Tech-savvy clients who prefer it
• Countries with banking restrictions
• Large amounts where speed matters

Payment Strategy by Client Type

US Clients

Best approach: Wise US bank details (ACH)

1. Provide client with Wise ACH routing + account number
2. Client pays via domestic ACH (free for them)
3. You receive USD in Wise
4. Convert as needed

Result: Near-zero fees, 1-2 day delivery

European Clients

Best approach: Wise EU bank details (SEPA)

1. Provide client with Wise Belgian IBAN
2. Client pays via SEPA transfer (free/cheap in EU)
3. You receive EUR in Wise
4. Convert as needed

Result: Near-zero fees, 1 day delivery

UK Clients

Best approach: Wise UK bank details

1. Provide client with Wise UK sort code + account
2. Client pays via Faster Payments (instant, free)
3. You receive GBP in Wise

Result: Zero fees, instant delivery

Australian/NZ Clients

Best approach: Wise local details

Similar process with local bank details for AUD/NZD.

Clients Elsewhere

Best approach: Wise international wire or USD

1. Request payment in USD to your Wise US details
2. Or provide Wise SWIFT details for wire
3. Wise incoming wire fee is lower than most banks

Setting Up Client Invoicing

Invoice Best Practices

Include multiple payment options:

Payment Options:

PREFERRED (Lowest fees):
Bank: Wise
Account Name: Your Name
US ACH: Routing [xxx] Account [xxx]
-OR-
EU SEPA: IBAN [xxx]

ALTERNATIVE:
PayPal: [email protected]
Wire: Contact for details

Invoice currency strategy:

• Invoice in client's currency when possible
• They see familiar numbers, pay easily
• You control conversion timing

Handling Currency Conversion

Convert strategically:

| Strategy | When to Use | |----------|-------------| | Immediate conversion | Volatile currencies, immediate need | | Hold and batch | Stable currencies, wait for good rate | | Hold in client currency | Future expenses in that currency |

Example: Receive EUR from European client. If you're living in Portugal, keep EUR. If you're in Thailand, convert to USD and hold, convert to THB as needed.

Platform-Specific Strategies

Upwork

Payment options:

• Direct to US bank (ACH)
• Payoneer
• PayPal
• Wire transfer

Best approach:

1. Connect Wise US details as "direct to bank"
2. Receive as domestic ACH transfer
3. 0.99% Upwork fee applies regardless

Toptal

Payment options:

• Payoneer
• Wire transfer

Best approach:

1. Payoneer for convenience
2. Transfer from Payoneer to Wise for best conversion

Fiverr

Payment options:

• Payoneer
• PayPal
• Bank transfer (limited)

Best approach:

• Payoneer direct integration
• Transfer to Wise for conversion

Remote.com / Deel / Oyster

These Employer of Record platforms typically handle payments directly:

• Multiple currency options
• Various payout methods
• Usually offer Wise as an option

Tax Documentation

What to Track

For every payment received:

• Date received
• Amount in original currency
• Exchange rate used (if converted)
• Amount in your reporting currency (USD for US citizens)
• Client name and invoice number

Why This Matters

| Use Case | Documentation Needed | |----------|---------------------| | Tax filing | Income reporting, exchange rates | | FBAR | Account balances, all accounts | | Audit protection | Complete paper trail | | Expense tracking | Business vs. personal |

Tools

• Wise statements: Downloadable, detailed
• Accounting software: Wave, FreshBooks, QuickBooks
• Spreadsheets: Simple but requires discipline

Common Problems and Solutions

Problem: Client Only Uses PayPal

Solutions:

1. Explain the cost difference: "PayPal costs me 5%—if you can ACH, I can offer X% discount"
2. Build PayPal fees into pricing
3. Accept for small amounts, insist on alternatives for large
4. Offer other payment methods prominently in invoice

Problem: Slow International Payments

Solutions:

1. Use Wise local bank details (domestic speed)
2. Set clear payment terms (Net 15/30)
3. Request payment before delivery for new clients
4. Follow up promptly when late

Problem: Currency Fluctuation

Solutions:

1. Invoice in stable currency (USD, EUR, GBP)
2. Convert immediately if worried about volatility
3. Build buffer into pricing
4. Use forward contracts for very large predictable payments (advanced)

Problem: Client in Restricted Country

Solutions:

1. Crypto/stablecoin payments
2. Third-party payment services
3. Accept limitations on some clients
4. Research specific corridors

Maximizing What You Receive

Fee Reduction Strategies

| Strategy | Savings | |----------|---------| | Wise local details | 2-5% vs. PayPal/wire | | Invoice in client currency | Avoid client's conversion fees | | Batch small payments | Reduce per-transaction minimums | | Negotiate payment terms | Faster payment = less risk |

Pricing Strategy

Account for payment costs in pricing:

If your target hourly rate is $100 and you expect 3% payment costs:

• Quote: $103-105/hour
• Receive after fees: ~$100

Or: Quote $100 and offer "3% discount for ACH/wire" to incentivize cheaper methods.

Invoice Timing

End of month vs. milestone:

• Monthly: Predictable cash flow, single transaction fee
• Milestone: Faster payment, multiple fees

For small projects, milestone payments may cost more in fees than they provide in cash flow benefit.

FAQ

Setup Checklist

Summary: Recommended Payment Stack

Essential

| Account | Purpose | |---------|---------| | Wise | Primary receiving account (local details) | | Payoneer | Platform payments (Upwork, etc.) |

Optional

| Account | Purpose | |---------|---------| | PayPal | Backup for clients who insist | | Crypto wallet | Tech clients, specific use cases | | Local bank | Large wire transfers, local clients |

Monthly Cost: $0

Both Wise and Payoneer have free accounts. You only pay conversion fees when moving money between currencies—and those fees are a fraction of alternatives.

Conclusion

International payment optimization is one of the highest-ROI activities for freelancers. Switching from PayPal to Wise local bank details can save 4%+ on every invoice—translating to thousands of dollars annually on typical freelance income.

Key principles:

• Use local bank details to turn international payments into domestic ones
• Invoice in client's currency to control conversion timing
• Minimize PayPal for significant amounts
• Track everything for tax purposes
• Educate clients that better methods save them money too

Set up your payment stack before you need it, test with a small payment, and enjoy keeping more of what you earn.

Related Guides

• The Ultimate Digital Nomad Packing List 2026
• Digital Nomad Banking Guide
• Wise vs Revolut Comparison
• Digital Nomad Tax Guide by Country
• Complete Digital Nomad Visa Guide
• Travel Insurance for Digital Nomads

About the Author

Peter Schneider