Cheapest way to pay international contractors from the US
For a US company paying contractors abroad every month, the cheapest route is usually a local payout in the contractor's currency. Wires, PayPal and per-seat platforms all cost more at volume.
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Google completes "best way to pay international contractors" with "cheapest way to pay international contractors". The answer depends on volume, and the costs are easy to estimate.
A monthly run of $40,000 to 12 contractors
| Route | Approximate cost |
|---|---|
| International wires | 12 sending fees, possible intermediary fees, plus 1% to 3% FX: $400 to $1,200+ |
| PayPal | Percentage fees plus a 3.00% conversion spread on the recipient side |
| Contractor platform | From $49 per contractor: $588 a month before FX |
| Local payouts | 12 flat payout fees plus a published FX margin of 0.3% to 0.8% |
Tax paperwork
- Foreign individuals: collect Form W-8BEN. No 1099 for work done entirely outside the US.
- Foreign companies: Form W-8BEN-E.
- Work performed in the US by a non-resident may be US-source income; ask a tax adviser.
Practical tips
- Ask each contractor which currency they want.
- Pay on the same day each month.
- Keep invoices and payment receipts together.
- Use approvals so one person prepares and another releases.
Paying into the United States: the local rail
| What | Detail |
|---|---|
| Local rail | ACH for batch payments; RTP and FedNow for instant transfers |
| Run by | Nacha for ACH; The Clearing House for RTP; the Federal Reserve for FedNow |
| Settlement | Same-day ACH within the business day, standard ACH the next; RTP and FedNow in seconds, 24/7, where both banks take part |
Source: Nacha: Same Day ACH. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
Rivet pays contractors in 120+ countries from one USD balance, in their currency on local rails where available, or in USDC/USDT where there is no local rail. Payouts cost $2 on Starter, $1 on Growth and $0.50 on Scale, with FX from 0.80% to 0.30%, shown before you confirm. Bulk runs take a file. Rivet is not a bank; regulated partner institutions hold the funds. See Deel alternatives for paying contractors.
Questions people ask
What is the cheapest way to pay international contractors?
For regular payments, a local payout in the contractor's currency from a provider with a low FX margin. Wires and PayPal cost more at volume.
Do I need to file 1099s for foreign contractors?
Not for non-US persons working entirely outside the US. Collect Form W-8BEN as documentation.
When is a platform like Deel worth it?
When you need contracts, compliance help or employer-of-record services. For payment only, per-contractor fees add up.
Should I pay in USD or local currency?
Ask the contractor. Paying in local currency at a good rate usually leaves them with more.
Sources
Alexia compares the accounts, cards and payment tools companies weigh before they switch, and writes Rivet's market guides for founders in a specific country. Prices in Alexia's comparisons come from each provider's own pricing page on the date given in the article, rules come from the regulator or tax authority that sets them, and every source is listed at the end.
More from Alexia M. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
- pay contractors abroad
- international payroll
- local payouts
- w-8ben
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