Source: https://rivet.global/blog/cheapest-way-to-pay-international-contractors-us
Published: 2026-09-05 · Updated: 2026-09-05 · By Alexia M.

# Cheapest way to pay international contractors from the US

Comparing how US companies pay contractors abroad: international wires, PayPal, contractor platforms and local payouts, with costs on a real monthly payroll.

## Key takeaways

- International wires cost a sending fee, possible intermediary fees and an FX margin, often 1% or more.
- PayPal adds percentage fees and a conversion spread; contractor platforms like Deel charge from $49 per contractor a month.
- Local payouts in the contractor's currency avoid intermediary banks and usually cost a flat fee plus a published FX margin.
- Collect a W-8BEN from each foreign individual contractor; no 1099 is due for work done entirely outside the US.

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

1. Ask each contractor which currency they want.
2. Pay on the same day each month.
3. Keep invoices and payment receipts together.
4. 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](https://www.nacha.org/rules/same-day-ach-moving-payments-faster). 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](/blog/deel-alternatives-for-paying-contractors).

## Questions

### 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.