Working with international clients in Europe, Canada, the UK, or Australia can be lucrative, but traditional payment gateways quietly extract 3% to 5% in hidden currency conversion spreads. Here is how to keep more of your earnings.
The Hidden Cost of PayPal
While PayPal is ubiquitous, its international fee structure is punishing for freelancers: a 4.4% international commercial transaction fee plus an undisclosed 3.0% to 4.0% markup over the mid-market exchange rate. On a $5,000 project, you can easily lose $350+ in friction.
Wise Business: The Mid-Market Standard
Wise (formerly TransferWise) gives freelancers local bank account details in 10+ currencies (USD, EUR, GBP, AUD, CAD). Your European client pays you via free local SEPA transfer, and Wise converts the currency at the real, mid-market Google exchange rate with a transparent fee of just 0.4%–0.6%.
Stripe: Ideal for Automated Credit Card Invoicing
Stripe is unmatched for recurring retainers and credit card billing. Expect standard 2.9% + $0.30 processing, plus a 1.0% fee for international cards and a 1.0% currency conversion fee if applicable.