How to Get Paid by International Clients Without Losing to Currency Fees

Let's face it. Working with international clients is great for your agency's growth, but the payment side can be a complete nightmare. Hidden fees, terrible exchange rates, and tax complications can easily eat 4-6% of your hard-earned money.

I've spent years helping agencies optimise their finances, and international payments are one of those areas where most businesses leak money without even realising it. 

If you're a freelancer, small agency owner, or consultant working with clients across different countries, this guide will show you exactly how to stop that leak.

The Cost of International Payments

Most agency owners don't actually realise how much money they're losing on international payments. Traditional bank transfers are probably the worst offenders here.

When a client sends you money through their bank, you're getting hit with:

• The sending bank's transfer fee (which your client might pass to you)
• Hidden currency conversion markups (banks typically add 2-4% to the mid-market rate)
• Your bank's incoming wire fee
• Possible intermediary bank fees if the payment routes through additional banks

Submit Your W-8BEN Form (If Working with U.S. Clients)

Let's talk about the W-8BEN form. If you're working with U.S. clients, this is absolutely essential.

The U.S. tax system requires American companies to withhold 30% of payments to foreign contractors unless you provide this form. Yes, that's 30% of your invoice amount that you won't see unless you handle this properly.

The W-8BEN (for individuals) or W-8BEN-E (for companies) tells the IRS you're not a U.S. person and are claiming tax treaty benefits.

Here's the important part that many people get wrong: You don't submit this form to the IRS. You provide it directly to your client or the payment platform you're using. It's valid for three years before you need to submit a new one.

Platforms like Upwork, Fiverr, and PayPal will usually prompt you to complete this form through their system. For direct clients, you'll need to be proactive and provide it yourself.

Use the Right Payment Platform

Choosing the right payment platform can save you thousands in fees annually. Here are the best options I've found:

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Wise (formerly TransferWise)

Wise is honestly a game-changer for international payments. It gives you:

• Real mid-market exchange rates (the same ones you see on Google)
• Transparent fees that are typically 0.4-0.7% of the transfer amount
• Local receiving accounts for USD, GBP, EUR, and many other currencies

This means your U.S. clients can pay you as if you had a U.S. bank account, even if you're based in the UK. No international wire fees on their end.

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Payoneer

Payoneer works really well if you:

• Receive payments from major marketplaces
• Need to withdraw to local bank accounts in your currency
• Want to hold balances in multiple currencies

The fees are slightly higher than Wise, but their platform integrates well with many business ecosystems.

Stripe (for incorporated businesses)

If you're running a more established agency that needs to accept card payments, Stripe lets you:

• Accept international payments in 135+ currencies
• Set up recurring billing (great for retainer clients)
• Process payments directly through your website

The downside is higher fees – typically 2.9% + 30¢ per transaction – but the convenience might be worth it for your business model.

Others to consider

• Revolut: Great multi-currency accounts with competitive exchange rates
• Deel: Specifically designed for paying international contractors and handling compliance
• PingPong: Especially good if you have clients or suppliers in Asia

Set Up Multi-Currency Accounts

One of the smartest moves you can make is holding money in different currencies rather than immediately converting everything.

For example, if you have both U.S. and European clients, keeping some money in USD and EUR means:

• You avoid unnecessary conversions (and fees) when paying USD/EUR expenses
• You can time your conversions for favorable exchange rates
• You're naturally hedged against currency fluctuations

Both Wise and Payoneer offer excellent multi-currency account options that let you receive, hold, and send in different currencies.

Invoicing and Conversion Practices

The way you invoice can make a huge difference in how much you actually get paid.

Invoice in the client's currency when possible. This makes it easier for them to pay you and eliminates their bank's conversion fees (which often get passed on to you).

Time your conversions strategically. Instead of converting payments immediately:

• Monitor exchange rate trends using tools like XE or set up alerts
• Convert larger amounts at once (better rates for larger transfers)
• Consider holding some funds in foreign currencies if you expect favorable rate movements

Payment Frequency & Negotiation Tips

Here's something most agencies miss: The frequency of payments directly impacts how much you pay in fees.

Batch your payments whenever possible. Many platforms charge a minimum fee per transaction, so receiving £10,000 once costs less in fees than receiving £2,500 four times.

Clearly define who bears transfer costs in your contracts. Include language like "Client is responsible for all transfer fees" or "Payment must be received in full amount" to protect yourself.

Educate clients on your preferred payment methods. I've found that most clients are happy to use your preferred platform if you explain how it makes things easier for both parties.

How to Get Paid by U.S. Clients Without a U.S. Bank Account

Working with American clients while based outside the U.S. used to be a massive headache, but now it's straightforward with the right setup.

With a Wise USD account, you'll get:

• A U.S. bank account number and routing number
• The ability to receive domestic ACH transfers (much cheaper than international wires)
• Typically same-day or next-day availability of funds

Just provide your Wise U.S. account details to clients and they can pay you as if you were a domestic vendor, completely eliminating international transfer fees on their end.

Pro tip: Specify that clients should use ACH transfers rather than wire transfers when possible. ACH is the standard U.S. domestic transfer method and typically costs them $0-3 instead of $25-50 for wires.

Make More, Keep More: Next Steps

If you're serious about optimising your international payments:

1. Audit your current system – Calculate how much you're currently losing to fees and exchange rate markups
2. Set up accounts with Wise or Payoneer – These will give you the best balance of low fees and convenience
3. Update your contracts and client onboarding – Make your payment preferences clear from the start
4. Complete your W-8BEN forms – Don't risk delays in client payments due to them not wanting to risk 30% of their income

At Sidekick Accounting, we've helped hundreds of agencies optimise their international payment strategies, saving them thousands each year. These small optimisations add up to significant profit improvements over time.

Want more strategies to make and keep more money in your agency? A specialised agency accountant is what you need. Want to know why? Check this out: Why Every Agency Needs a Specialised Agency Accountant

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