Getting paid by an international client can feel rewarding, until the money lands in your account. Between transfer fees, exchange rate markups and currency conversion costs, the amount you receive can be noticeably lower than the amount you invoiced. Sounds relatable and unfair, right? Around 2 million people now work as freelancers in the UK, …
Getting paid by an international client can feel rewarding, until the money lands in your account. Between transfer fees, exchange rate markups and currency conversion costs, the amount you receive can be noticeably lower than the amount you invoiced. Sounds relatable and unfair, right?
Around 2 million people now work as freelancers in the UK, according to the Association of Independent Professionals and the Self-Employed (IPSE. Freelancing gives professionals the freedom to work with clients across the world, opening the door to better opportunities and potentially higher earnings. However, getting paid internationally as a freelancer also introduces challenges that can affect your final payment.
The first and most common problem with international payments is exchange rate fluctuations, which often result in getting poorer rates than expected. With recurring payments for freelancers, exposure to currency risk is even amplified and can have a significant impact on earnings.
The time of international payment transactions depends on the selected payment method, but in most cases, when money is transferred across borders through intermediary banks, transfers often become a fate for freelancers, creating inconvenience.
The amount on your invoice isn’t always the amount that reaches your bank account. Between the sending bank’s fee, the receiving bank’s fee, currency exchange fee and whatever the platform in the middle charges, it’s common to lose £20–£40 before the money even reaches your account and sometimes even more, depending on the opted method and provider.
A silent trap and one of the biggest costs freelancers overlook is the exchange rate markup. No fee shows up on your statement. Nothing looks wrong. You just end up with less money than the amount you calculated. That’s because providers often add hidden markup that further reduces the received payment.
Today, there are many options that allow getting paid internationally as a freelancer, each one with its own pro and con. Some offer better exchange rates for slower processing time, and some offer instant processing at poor rates and high fees. Some of the most commonly used methods by freelancers are:
The traditional and most commonly used route by businesses and freelancers is bank transfer. Its pro is definitely reliability, which often outweighs the con: slower transactions that might take 2-5 working days to reach your account. Ideal for larger payments but not worth it for multiple smaller payments.
The digital platforms are often quick to set up and easier to send and receive money. However, before accepting international payments, check the provider’s overall fee structure. If fees are charged as a percentage, receiving larger payments could mean losing a considerable amount.
Some clients and businesses rely on credit and debit cards, which is often a convenient choice for the sender. However, getting paid as a freelancer with card payment means: automatic conversion at the available rate and 3-5% or more processing fees.
Freelancing platforms like Upwork and Fiverr make getting paid internationally as a freelancer quite simple, offering built-in options. However, this convenience also comes at the cost of an added platform fee on top of currency conversion fees.
So, there’s no single method that is best for all freelancers in the UK. This choice rather depends on individual circumstances. Here’s how you can narrow down the options:
Choose the one that offers:
At Linea Global, we offer a range of foreign exchange solutions for individuals and businesses. Our experience enables us to understand the intricacies of currency exchange, which becomes a problem for freelancers. Here’s how our efficient and cost-effective solutions can help them get paid:
Flexibility in choosing options: Whether you are looking to exchange immediately or plan ahead, we have multiple options, from spot to forwards.
Reliable transactions: Our experienced team supports you throughout the payment process, helping you manage international transactions with confidence.
Favourable rates and no markup: We provide competitive exchange rates with no hidden markups, helping you retain more of what you earn from international clients.
Rate alerts: For freelancers who receive regular overseas payments, rate alerts help you choose a more favourable time to convert your funds.
Still confused? Talk to us, and we’ll help you find the right solution for your freelancing payment needs.
