Getting Paid Internationally 2026: Complete Guide for Remote Workers

Why Payment Method Matters

When you work remotely for international clients, the payment method you choose directly impacts your take-home pay. The difference between using a low-fee service like Wise versus PayPal can be 3-5% of every payment—that’s $1,500-$2,500 per year on a $50,000 income, lost to unnecessary fees.

Beyond fees, the right payment infrastructure reduces friction with clients, improves cash flow, and simplifies your taxes. Setting up proper international payment systems is one of the highest-ROI investments you can make as a remote worker.

Payment Methods Compared

Wise (Formerly TransferWise)

Best for: Most international payments, especially non-USD currencies

Wise has become the gold standard for international remote workers because it uses the real mid-market exchange rate with a transparent, low fee (typically 0.4-1% depending on currency pair).

Key Features:

• Multi-currency account holds 50+ currencies
• Local bank details in US, UK, EU, Australia, and more
• Debit card for spending in any currency
• Business account available for freelancers

How Remote Workers Use It:

1. Open a Wise account and get US bank details (routing/account number)
2. Give clients your US bank details—they pay via normal domestic transfer
3. Money arrives in your Wise USD balance with zero international fees
4. Convert to your local currency when ready (at mid-market rate + small fee)

Costs: Account is free. Conversion fees range from 0.4% to 1% depending on currencies. No fees to receive money to your US/UK/EU account details.

PayPal

Best for: Small payments, client convenience, marketplaces

PayPal is ubiquitous but expensive. Many clients prefer it because they already have accounts, making it good for initial payments or small amounts where convenience outweighs cost.

Key Features:

• Almost universal—most clients have PayPal
• Buyer/seller protection (useful for disputes)
• Instant transfers to bank available (for a fee)
• PayPal Business account for invoicing

Costs:

• Receiving payments: 2.9% + fixed fee (domestic) or 4.4% + fixed fee (international)
• Currency conversion: Additional 3-4% markup on exchange rate
• Withdrawal to bank: Free (2-3 days) or 1% instant

Warning: PayPal’s exchange rate markup is hidden and significant. If a client sends you €1,000, you might receive only $1,030 instead of the $1,080 you’d get at the real exchange rate. Always request payment in your preferred currency if possible.

Payoneer

Best for: US clients, marketplace payments (Upwork, Fiverr)

Payoneer provides a US bank account and routing number even for non-US residents, making it easy to receive payments from US companies that only pay via ACH.

Key Features:

• US bank account for non-US residents
• Direct integration with major freelance platforms
• Multi-currency receiving accounts
• Payoneer card for spending

Costs:

• Receiving bank transfers: 1%
• Receiving from other Payoneer users: Free
• Currency conversion: 2% above mid-market
• ATM withdrawal: $3.15

Best Use Case: If you work through Upwork, Fiverr, or similar platforms, Payoneer often offers the lowest fees for withdrawals compared to direct bank transfer.

Bank Wire Transfers

Best for: Large payments, established client relationships

Traditional wire transfers (SWIFT) are secure and work everywhere but are expensive and slow—typically $25-50 per transfer plus potential intermediary bank fees.

When to Use:

• Large payments where the fixed fee is relatively small
• Clients who only offer wire transfers
• Corporate clients with strict payment policies

Costs: $15-50 sending fee (paid by client or you) plus $10-25 intermediary fees plus potential exchange rate markup (2-5%).

Direct ACH/SEPA Transfers

Best for: Regular payments from the same region

If you have local bank details in the sender’s country (via Wise, Payoneer, or local bank account), direct bank transfers are often free or very cheap.

• ACH (US): Free or $0.25-1.00, takes 1-3 business days
• SEPA (Europe): Free or €0.20-1.00, same or next business day
• Faster Payments (UK): Free, usually instant

This is why having Wise or Payoneer accounts with local details is so valuable—your US client sends a domestic ACH (which is free for them), and you receive it without international wire fees.

Setting Up Your Payment Infrastructure

Negotiating Payment Terms

As a remote contractor, you have more control over payment terms than you might think. Here’s how to optimize:

Payment Method Preferences

When negotiating with new clients, express a preference for low-fee payment methods:

Ideal: “I can provide US bank details for ACH transfer” (via Wise) Good: “Wire transfer to my EUR account works well” (if in Europe) Acceptable: “PayPal works for invoices under $500”

Most clients are flexible—they just want a straightforward way to pay you. By providing local bank details, you make their life easier while saving yourself fees.

Payment Frequency

For ongoing work, negotiate payment frequency that matches your cash flow needs:

• Weekly: Best for hourly contracts, ensures consistent income
• Bi-weekly: Common for contractor arrangements
• Monthly: Standard for retainer agreements
• Per project: Use milestones with partial payments upfront

Payment Timing

Standard terms are “Net 30” (payment due 30 days after invoice), but you can often negotiate better:

• Net 15: Reasonable to request, especially from larger companies
• Net 7: Possible for established relationships or smaller clients
• Upon receipt: Rare but achievable for some projects
• 50% upfront: Standard for project-based work with new clients

Currency Considerations

Which Currency to Invoice In

Option 1: Client’s Currency (Recommended for most)

• Easier for the client
• You control when and how to convert
• Can wait for favorable rates

Option 2: Your Local Currency

• Client bears conversion risk
• May discourage some clients
• Useful if rates are volatile

Option 3: USD/EUR (Neutral ground)

• Good for clients in other currencies
• Stable value
• Widely accepted

Timing Your Conversions

Don’t convert immediately if you don’t need the local currency. Hold funds in the original currency and convert when:

• Exchange rate is favorable
• You need local currency for expenses
• Tax year-end considerations apply

Wise and similar services make it easy to hold multiple currencies indefinitely at no cost.

Tax and Reporting Considerations

Foreign Account Reporting

US Residents: If you have foreign financial accounts exceeding $10,000 at any point during the year, you must file an FBAR (FinCEN Form 114). Wise and Payoneer accounts count as foreign accounts.

Other Countries: Many countries have similar reporting requirements. Check with a local tax professional.

Income Reporting

All international income is generally taxable in your country of residence:

• Report income in your local currency using the exchange rate on payment date
• Keep records of all payments, invoices, and currency conversions
• Track fees as business expenses (they’re tax-deductible)

Withholding Taxes

Some countries withhold taxes on payments to foreign contractors:

• US: Generally no withholding for properly documented non-US contractors (W-8BEN form)
• UK: No withholding for non-UK contractors
• Australia: May withhold 47% without proper documentation

Ensure you provide the correct tax documentation (W-8BEN, tax residency certificate, etc.) to avoid unnecessary withholding.

Common Mistakes to Avoid

Using PayPal’s Currency Conversion: PayPal’s exchange rates include a 3-4% markup. Always request payment in USD/EUR and convert yourself via Wise.

Not Having Backup Options: Clients may have restrictions on payment methods. Having accounts with Wise, Payoneer, and PayPal ensures you can always get paid.

Ignoring Exchange Rate Timing: Converting immediately after every payment means you accept whatever rate is available. For non-urgent conversions, wait for favorable rates.

Poor Record Keeping: Track every payment, conversion, and fee for tax purposes. Use accounting software like Wave, FreshBooks, or even a simple spreadsheet.

Not Negotiating: Many remote workers accept whatever payment method and terms clients suggest. You have leverage—use it to minimize fees and improve cash flow.