To receive international payments, most US freelancers and small businesses use one of three routes: an international wire into a US bank account, a card payment through an online invoice, or an account on a payment platform that gives you local bank details in other countries. Wires are widely accepted but can lose money to fees along the way. Cards are easy for clients but cost you a processing fee. Local receiving details are often cheapest for repeat clients in a few big currencies.
The right choice depends on three numbers: the total fees, the exchange rate you get, and how long you can wait for the money.
The main ways to get paid from abroad
| Method | How the client pays | Typical speed | Main costs to you |
|---|---|---|---|
| International wire to a US account | From their bank, using your SWIFT code and account details | One to five business days | Incoming wire fee, intermediary bank charges, exchange rate markup |
| Card payment on an invoice | Clicks a link and pays by card | Funds usually reach you in a few days | Processing fee, often higher for foreign cards, plus currency conversion |
| Local receiving details on a payment platform | Sends a domestic transfer in their own country | Often same day to two days | Platform fees and the rate when you convert to dollars |
| Check drawn on a foreign bank | Mails a check | Weeks | Collection fees; many banks no longer accept them |
Fees and features vary widely by provider, so no single option wins for everyone. A designer billing one client in London each month has different needs than a shop selling small orders in thirty countries.
What to give an overseas client
For a wire, your client’s bank needs exact details. Missing or mismatched data is the top reason international payments get delayed or returned.
- Your full legal name or business name, exactly as it appears on the account.
- Your address.
- Your bank’s name and address.
- Your account number.
- Your bank’s SWIFT or BIC code, which identifies the bank internationally.
- Your bank’s routing number for incoming wires, which may differ from the one used for direct deposit.
- The currency you want to be paid in.
Clients in Europe often ask for an IBAN. The United States does not use IBANs, so you can tell them that a SWIFT code plus account number does the same job. Before giving details out, ask your bank for its incoming international wire instructions. Some banks route foreign wires through a partner bank and need extra lines filled in.
Where the money goes missing
An international payment often arrives smaller than the invoice. The gap usually comes from three places.
First, your bank may charge a fee to receive a wire. Second, intermediary banks along the route can take their own cut before the money reaches you. The sender can choose to cover all charges, split them, or pass them all to you, so say which you expect on the invoice.
Third, and often largest, is the exchange rate. If the client pays in euros and your bank converts to dollars, the rate it uses usually includes a markup over the mid-market rate. For example, on a $5,000 invoice a 2% markup costs you $100, even if no fee shows on your statement. Compare the rate you got with the mid-market rate on the same day to see what you really paid.
The sending side has its own costs, which our guide to how to send money abroad explains. Reading it can help you suggest a cheaper route to your client.
Invoice in dollars or in the client’s currency?
Pricing in dollars puts the currency risk on your client. You know exactly what you will receive, minus fees. However, some clients prefer to pay in their own currency, and a dollar invoice can make you look more expensive when their currency weakens.
Pricing in their currency is friendlier for them, but you carry the risk. If the euro falls 5% between invoice and payment, your income falls with it. Some freelancers handle this by quoting in the client’s currency and adjusting prices once or twice a year. Others hold the foreign currency and convert only when rates suit them.
Either way, write the currency, the payment method, who pays fees and the due date on every invoice. That removes most disputes before they start.
Bank checks, sanctions and holds
Banks screen incoming international payments. They check senders against US sanctions lists, and the Treasury’s Office of Foreign Assets Control requires banks to block or reject certain payments. Its guidance for financial institutions explains when a bank must freeze funds and when it must send them back.
In practice, this means a payment from a sanctioned country or person will not reach you, whatever the client intends. It also means your bank may ask questions about a large or unusual transfer. Keep contracts and invoices handy, because they answer most questions quickly. A first payment from a new country is the one most likely to be paused.
Fraud is the other risk. A common scam is an “overpayment,” where a new client sends too much and asks you to wire the difference back. The original payment later bounces. Never return money until the incoming funds have fully cleared.
Taxes on money from foreign clients
US citizens and residents owe tax on worldwide income. So money from an overseas client is taxable just like money from a client next door, even though no Form 1099 will arrive. Freelancers usually report it on Schedule C.
If your net earnings from self-employment reach $400 or more, you also owe self-employment tax of 15.3%, covering Social Security and Medicare. If a foreign client asks for a tax form, US persons give a Form W-9, not the W-8BEN meant for foreign persons. When a foreign government withholds tax on your fee, the foreign tax credit may offset it.
Payment platforms may send you a Form 1099-K. For 2025 and later, the IRS confirms third-party networks report only above $20,000 and 200 transactions, while card payments are reportable at any amount. The income is taxable either way.
Holding money in an account outside the US adds reporting. If your foreign accounts together top $10,000 at any point in the year, you file an FBAR, due April 15 with an automatic extension to October 15. Larger balances can also trigger Form 8938; for a single filer living in the US, that starts above $50,000 at year-end or $75,000 at any time.
Set up before the first invoice
- Open a separate account for business income so records stay clean. Our guide on how to open a business bank account covers the paperwork.
- Ask your bank for incoming international wire instructions and its fees.
- Decide your invoice currency and who pays transfer fees.
- Compare two or three ways to receive money using a real invoice amount.
- Set aside part of each payment for income and self-employment tax.
For related topics, browse the money and business guide. This article is general information, not financial or tax advice.
Frequently asked questions
How do I get paid by overseas clients cheaply?
Compare the total cost, not only the listed fee. Include intermediary charges and the exchange rate markup, and test with a real invoice amount.
Can I receive money from abroad into a regular US bank account?
Yes. Most US banks accept incoming international wires. Ask yours for its SWIFT code, wire routing number and incoming wire fee.
Do I pay US tax on payments from foreign clients?
Yes, if you are a US citizen or resident. Report it as business income, and pay self-employment tax if your net earnings are $400 or more.
Do I need an IBAN to receive international payments?
No. US accounts do not have IBANs. Your bank’s SWIFT code and your account number serve the same purpose.
Have a question about this topic? Ask in the comments below. Our editors read every comment and answer questions here, and we add useful answers to the guide.
Sources
- irs.gov/businesses/small-businesses-self-employed/self-employmen…
- irs.gov/businesses/small-businesses-self-employed/report-of-fore…
- irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements
- irs.gov/newsroom/irs-issues-faqs-on-form-1099-k-threshold-under-…
- irs.gov/forms-pubs/about-form-w-9
- irs.gov/individuals/international-taxpayers/foreign-tax-credit
- ofac.treasury.gov/faqs/topic/1621