Source: https://rivet.global/blog/pay-contractors-in-latin-america-from-us
Published: 2026-09-07 · Updated: 2026-09-07 · By Alexia M.

# Paying contractors in Latin America from the US: a country guide

How US companies pay contractors in Mexico, Brazil, Colombia, Argentina and Chile: local rails, currency preferences, FX controls and the documents to keep.

## Key takeaways

- Mexico's SPEI and Brazil's PIX settle local payments in seconds; Colombia launched its Bre-B instant system in 2025.
- Some contractors prefer USD, especially in Argentina, where currency rules have changed often.
- Inbound payments in Brazil and Colombia go through a foreign exchange process on the contractor's side.
- Collect a W-8BEN from each contractor; pay against an invoice.

US companies hire across Latin America for time-zone overlap. Paying those teams well means using each country's local rail and respecting what contractors prefer.

## By country

| Country | Local rail | Currency preference |
|---|---|---|
| Mexico | SPEI (CLABE) | Mostly MXN; some USD |
| Brazil | PIX, TED | BRL |
| Colombia | Bre-B, ACH Colombia | COP |
| Argentina | Transferencias 3.0 | Often USD |
| Chile | TEF | CLP |

## Currency rules on the receiving side

- Brazil: inbound payments pass through an FX contract at the receiving bank, with tax on the exchange in some cases.
- Colombia: inbound foreign currency is declared through the receiving intermediary.
- Argentina: rules have changed often; ask contractors how they want to be paid.

## Your side

1. Collect a W-8BEN.
2. Agree the currency and the payment date in the contract.
3. Pay against invoices with the invoice number as the reference.
4. Use approvals for the monthly run.

## 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 across Latin America and 120+ countries from your USD balance, in local currency on local rails where available, or in USDC/USDT where contractors prefer it and it is allowed. Fee and FX show before you confirm. Rivet is not a bank; regulated partner institutions hold the funds. See [MXN business payments](/blog/mxn-business-payments) and [BRL business payments](/blog/brl-business-payments).

## Questions

### What is the best way to pay contractors in Latin America?

Ask each contractor. Most in Mexico, Brazil and Colombia want local currency on the local rail. Some, especially in Argentina, prefer USD.

### What is SPEI?

Mexico's interbank electronic payment system, run by Banco de México. Payments use an 18-digit CLABE.

### What is PIX?

Brazil's instant payment system, run by the Banco Central do Brasil. Payments arrive in seconds using a PIX key or account details.

### Do I withhold US tax?

Not for non-US persons working entirely outside the US. Collect a W-8BEN.