Best Way to Pay International Contractors

Last Updated on January 22, 2026 by Ewen Finser

One topic that causes a lot of confusion at SMBs is paying international contractors. Hiring contractors in other countries comes with several benefits. First, the talent pool is larger — you have more freedom to find the right candidate for the job. Additionally, contractors in other countries may charge less for their services than those located stateside, since the cost of living can be drastically lower. 

Despite these benefits, SMBs commonly struggle with the ins and outs of paying international contractors. In this article, we’ll explore some of the best ways to pay international contractors, helping you make an informed choice. 

Key Considerations When Paying International Contractors

There are some crucial factors to keep in mind when paying contractors in other countries. 

• Foreign exchange (FX) rates: To pay a contractor in their local currency, you’ll have to convert USD to the contractor’s currency, or vice versa. Exchange rates aren’t static — they fluctuate frequently along with the global market. 

• International payment fees: Payment processors charge transaction fees, and often the fee for making a cross-border payment is higher than for a domestic payment. Transaction fees can vary widely, and they can add up significantly over time. 

• Tax documentation: Although you won’t have to send out W-2s or 1099s to international contractors, you aren’t completely out of the woods with tax documents. For U.S. contractors and employees, you’ll collect Form W-9 to get their taxpayer identification numbers. While W-9s aren’t for international contractors, you will need to collect a similar form from them: Form W-8BEN. 

Best Way to Pay International Contractors: At a Glance

	Best For	FX
Melio	AP and AR	15 currencies 80 countries Guaranteed rate for 30 minutes Volume discounts
Payoneer	Paying freelancers in less common countries	70 currencies 150 countries Guaranteed rate for 2 minutes
Wise	Fast international payments	55 currencies 70 countries Guaranteed rate for 30 minutes Volume discounts
Tipalti	Complex AP needs	120 currencies 200 countries FX hedging Real-time monitoring
Stripe	Collecting payments from customers	50 countries Guaranteed rate for 24 hours

Melio

Melio is a popular payment solution that many SMBs use to manage both AR and AP. While many businesses might use it solely for domestic payments, it has strong international payment capabilities that shouldn’t be overlooked. These are particularly useful for paying international contractors. 

Key Features

• Countries and currencies: Currently, Melio supports payments to contractors in 15 currencies, including common currencies like CAD, EUR, and GBP. Additionally, they support payments to 80 countries and territories. Keep in mind that the currencies and countries supported are subject to change. 

• FX rates: When you’re paying a contractor in their local currency, you’ll have to see how much you’ll need to pay in USD. In Melio, when you enter the foreign currency, it will show you the equivalent amount in USD, and that rate is guaranteed for the next 30 minutes. 

• Payment delivery times: The time it takes for your international payment to arrive depends on whether your payment is in USD or a local currency, and expedited options are also available. 

• International payments (USD): 4-6 business days
• Fast international payments (USD): 1-3 business days
• International payments (local currency): 0-3 business days

• Batch payments: You can pay multiple contractors at once with Melio. You can also combine up to 20 bills to the same contractor in one payment. 

• Fees and pricing: 

• International ACH:
  • USD: $20 flat fee
  • Fast USD: $1 ($30 minimum, $95 maximum)
  • Local currency: Conversion rates

• International card: 
  • USD: 2.9% + $20
  • Fast USD: 2.9% + $30
  • Local currency: USD + conversion rates

• Plans: 
  • Go: Free
  • Core: $25/month, $10/month per additional user
  • Boost: $55/month, $10/month per additional user
  • Unlimited: $80/month
  • Platinum: Custom pricing

• Volume discounts: Melio offers reduced rates on FX transactions, as well as faster settlements, for businesses that make over $100,000 in international payments each quarter. 

Verdict

Melio is a solid option for SMBs that need to pay international contractors. Its fees are competitive, and it supports payouts in all of the major currencies. And its global payment capabilities aren’t its only strong features. It’s great as an all-in-one solution for managing both AP and AR, and it integrates with QuickBooks and Xero. 

Payoneer

Another option for paying international contractors is Payoneer, which allows you to both send and receive payments. This platform is especially popular for global transactions due to the sheer number of countries and currencies it supports. However, you can use it for domestic payments as well. 

Key Features

• Countries and currencies: Currently, Payoneer supports payments in 70 currencies to over 150 countries. Keep in mind that for each currency, Payoneer sets a minimum and maximum transaction amount, and these amounts could be subject to change. 

• FX rates: Payoneer’s FX rates are based on wholesale currency market rates at the time of transaction. You can lock in a conversion rate for two minutes. 

• Payment delivery times: While Payoneer doesn’t provide precise delivery timelines for international payments, in general, payments may take up to five business days to arrive. The company advises recipients to contact support if they haven’t yet received payment within that timespan. 

• Batch payments: You can pay up to 150 transactions at once. One option Payoneer offers is that you can schedule batch payments on a weekly or monthly basis if desired. 

• Fees and pricing:

• Credit card: 3% to 3.99% depending on the recipient’s country. In some cases, you can choose either to pay the fee or to pass it on to the recipient. However, customers in the European Economic Area will be automatically charged the fee. 
• Between Payoneer accounts: Up to 1% of the transaction amount. There is a minimum fee of up to $4. 
• Currency conversion fee: Up to 3.5%
• Subscription fees: None

Verdict

Many SMBs use Payoneer to pay international contractors due to the extensive number of countries and currencies it supports. One plus of Payoneer is that it doesn’t charge a monthly fee. However, its fees for international payments can add up significantly over time, so it may not end up being the most cost-effective option. 

Wise

Wise is fairly similar to Payoneer in that both platforms have a global focus, allowing you to send and receive payments internationally. 

Key Features

• Countries and currencies: Wise supports payments to over 70 countries, and you can hold money in over 55 currencies in your Wise Business account.

• FX rates: Wise uses the mid-market exchange rate to convert funds between currencies. FX rates can change rapidly, but Wise does let you lock in a guaranteed rate for a set period of time. However, the guaranteed rate will refresh after 30 minutes if you stay on one step of the transfer setup process.

• Payment delivery times: The payment method you use is a major factor that determines how long the funds will take to arrive. 

• Card: Instant
• Bank transfer: 1-4 business days
• International wire: 1-6 business days

• Batch payments: With Wise, you can send up to 1,000 payments at once with their solution called BatchTransfer. It’s fairly quick to process, as well. Wise claims that half of the payments will be paid out within one hour. This is a great way to pay several contractors at one time.

• Fees and pricing: Fees for sending money start at 0.33%, but the exact fee you’ll face depends on the currency and payment method. Wise has an interactive calculator on their site that you can use to get an idea of how much you’d pay, breaking down the fees. Wise does not charge subscription fees. 

• Volume discounts: Volume discounts are available when you send over $25,000 in one month. 

Verdict

Wise can quickly deliver payments to several countries around the globe, making it another top choice for paying global contractors. Its volume discounts may also be appealing to SMBs that make frequent international payments, and it doesn’t charge a monthly fee. If you pay with a card, you can pay a global contractor instantly. 

Tipalti

Tipalti is for AP only, so you can’t use it to receive payments. However, its use of automation in AP tasks, invoice management, and tax compliance makes it a popular choice for businesses with more complex payment needs. It has a strong focus on global payments as well, making it a solid option for paying international contractors. 

Key Features

• Countries and currencies: If you have either Tipalti’s Advanced or Elevate plan, you can make payments to over 200 countries in over 120 currencies. 

• FX rates: Tipalti lets you lock in FX rates to hedge against market volatility. Additionally, you can use the platform to monitor live rates. 

• Payment delivery times: The time it takes for payment to arrive will depend on the country and payment method. Tipalti’s site has a chart breaking down their estimated timelines. It shows that for most countries, payment will arrive within one business day when paying via wire transfer. 

• Batch payments: Like its competitors, Tipalti lets you send batch payments. Tipalti’s site doesn’t specify a specific upper limit on the number of transactions you can include. However, online chatter shows that customers report sending thousands of payments at once. 

• Fees and pricing: Tipalti’s site doesn’t break down their transaction fees. However, it does give you an idea of what kinds of subscription costs you’d face. There are three Tipalti plans available:

• Select: $99/month
• Advanced: $199/month
• Elevate: Custom pricing

Verdict

Supporting payments to 200+ countries, paying international contractors is well within Tipalti’s realm of expertise. However, keep in mind that this platform is for AP only; you can’t use it to receive funds. Additionally, it’s fairly expensive compared to many other options, so purchasing a subscription may not be feasible for many small businesses. 

Stripe

Stripe is one of the most widely known payment processors. The brand is commonly recognized by businesses and consumers alike. While many SMBs use it to collect payments from customers either in-person or online, Stripe is also a popular way to send global payouts, including payouts to international contractors. 

Key Features

• Countries and currencies: Stripe’s site doesn’t specify the number of currencies you can pay global vendors in, but it does state that it supports payments to over 50 countries. 

• FX rates: You can lock in FX rates for up to 24 hours, helping you avoid volatile fluctuations in exchange rates.

• Payment delivery times: International payments generally take between one and seven days to arrive. The exact timeline will depend on the country and payment method. 

• Batch payments: Stripe’s site states that it supports mass payouts, but it doesn’t specify how many payments you can make at once. 

• Fees and pricing: There are three fees involved in making an international payment to a contractor: a standard payout fee, a cross-border fee, and an FX fee. 

• Standard payout fee: 1.50 USD, 0.50 GBP, or 0.30 EUR per transaction (depends on sender’s country)
• Cross-border fee: 0.25% to 1.25%
• FX fee: 0.50% for transactions between USD, EUR, and GBP, otherwise 1% (U.S. senders)
• Stripe: There aren’t any monthly subscription fees associated with Stripe. 

Verdict

Using Stripe is an effective way to pay contractors internationally. But while it has global payment capabilities, Stripe’s main specialty is receivables, so some of its payment features may not be as advanced as competitors. 

What is the Best Way to Pay International Contractors?

All the payment platforms discussed here can get the job done. They each support global payments, allowing your business to efficiently pay contractors located in other countries. Despite their similarities, there are several distinctions between them, so it’s important to do your research to find the best solution for you. 

Overall, my top pick would be Melio. While it charges a monthly subscription fee, it’s relatively low and is balanced out by its competitive fees for international transactions. Combined with its ability to help you manage both AR and AP, as well as its seamless integrations with QuickBooks and Xero, it’s a strong choice for SMBs. 

However, you may find that another solution suits you better. For example, if you need to pay a contractor in a country that Payoneer supports but Melio doesn’t, you might prefer Payoneer. Or if you’re looking for something that you can also use to collect in-person payments from customers, you might like Stripe. But for many SMBs, the most well-rounded solution will be Melio.