Wise for Freelancers in the USA: A Guide to Getting Paid Internationally
As a US-based freelancer working with international clients, you face a frustrating problem: getting paid. Traditional bank transfers are slow and expensive, and while PayPal is common, its high fees and poor exchange rates can eat away 5-7% of your hard-earned income. This guide will show you how to use Wise (formerly TransferWise) to solve this problem, allowing you to get paid faster, cheaper, and more professionally.
The Short Answer: Why Wise Wins for Freelancers
Wise is the best way for most US freelancers to receive international payments. It provides you with local bank details in multiple currencies (like EUR, GBP, AUD), allowing clients to pay you like a local. You receive the money at the real exchange rate with a tiny, transparent fee, saving you a significant amount compared to PayPal.
The Freelancer's Dilemma: The High Cost of Getting Paid
Let's say you invoice a European client for €1,000. Here's what often happens:
- With PayPal: The client sends €1,000. PayPal converts it to USD using its own inflated exchange rate (often 3-4% below the market rate) and then may charge an additional international transaction fee. You could easily lose €50-€70 ($55-$77) in the process.
- With a Bank Wire Transfer: Your client's bank charges them a high fee (€20-€40) to send the wire, and your US bank may charge you an incoming wire fee ($15-$30). The whole process can take 3-7 business days.
This friction costs you both time and money, and it makes you look less professional to your clients.
Head-to-Head: Wise vs. PayPal for a €1,000 Payment
| Feature | Wise | PayPal |
|---|---|---|
| Exchange Rate | Real Mid-Market Rate | Inflated Rate (3-4% Markup) |
| Fees | Low, Transparent Fee (~€5) | High Fixed & Percentage Fees (~€30-€50) |
| Speed to US Bank | 1-2 Business Days | 3-5 Business Days |
| Client Experience | Simple Local Bank Transfer | Requires PayPal Account |
| Amount Received (Approx.) | ~$1,075 | ~$1,010 |
Stop losing your earnings to fees. Get paid what you're worth.
Open a Free Wise Account Today →Your 4-Step Guide to Receiving Payments with Wise
Sign Up for a Wise Account
The first step is to create your free multi-currency account. It's a simple online process that takes about 10 minutes. You will need to verify your identity with a government-issued ID, just like opening a bank account.
Open a Currency Balance for Your Client
Once your account is open, navigate to the "Balances" section. If your client is in Germany, open a EUR balance. If they're in the UK, open a GBP balance. Wise will instantly generate local bank details for that currency (an IBAN for EUR, a Sort Code for GBP, etc.).
Add the Bank Details to Your Invoice
On your next invoice, instead of putting your PayPal address, include the local bank details Wise provided. For your German client, you'd add the IBAN and BIC/SWIFT code. Instruct them to pay via a standard local bank transfer.
Receive and Convert the Funds
Your client makes a simple, free local transfer. The money arrives in your Wise EUR balance in 1-2 days. From there, you can convert it to USD within your Wise account at the real exchange rate and withdraw it to your US bank account, or keep it as EUR to pay for business expenses.
Frequently Asked Questions for Freelancers
Is Wise a real bank? Can I trust it with my money?
Wise is a licensed financial institution, not a traditional bank. It is regulated by financial authorities in every country it operates in, including FinCEN in the USA. It's a publicly-traded company on the London Stock Exchange and is trusted by over 16 million customers. It is very safe for its intended purpose: moving and holding money.
What about taxes?
Wise does not handle your taxes. You are responsible for reporting your income to the IRS just as you would with any other payment method. You can download monthly statements from Wise for all your currency balances to make bookkeeping simple.
How does this compare to Payoneer?
Payoneer is another popular option for freelancers. Its fees are generally higher than Wise, and its exchange rates are often less favorable. Wise is typically the cheaper and more transparent option for direct client payments.
Conclusion: The Professional Choice for the Global Freelancer
As freelancing becomes more global, using outdated payment systems is no longer viable. Wise provides a modern solution that is cheaper, faster, and more professional than its competitors. By giving your international clients an easy, local way to pay you, you eliminate friction and build trust. More importantly, by avoiding inflated exchange rates and hidden fees, you ensure that more of your hard-earned money ends up where it belongs: in your pocket.
Related Reading
- Wise for Shopify & E-commerce Sellers
- Wise vs PayPal: A Detailed Fee & Speed Comparison
- How to Use Wise for Stripe Payouts
Community Discussion
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