I have been invoicing US clients from Spain for years. The first time, I accepted what the client suggested, which was paying by card through PayPal, and it took me months to work out what that cost me. This guide is what I wish I had read then.
The four routes
A US client can pay you in four ways, and each one splits the cost differently:
- Card through a processor (Stripe, PayPal, Whop). Easy for the client and the most expensive for you: you pay the card fee, a surcharge for a foreign card and the conversion markup.
- Bank transfer to an account with US bank details (Wise, Payoneer and similar). You get a US account and routing number; your client pays by ACH, like any domestic supplier. Usually the cheapest option by a wide margin.
- International wire (SWIFT) to your European bank. It works, but it is opaque: the client's bank charges to send, an intermediary bank may take a cut, and your bank converts at its own rate. Ask your bank what margin it applies before you hand over your IBAN.
- Through a marketplace such as Upwork or Fiverr. The platform takes its commission, and then you still have to withdraw the dollars. I break that down on the Upwork fees page.
What each route costs on a $5,000.00 invoice
These are the figures for a US client paying a business with a euro account in Spain, at each provider's published rates:
- Card fee
- Cross-border
- Conversion
- Payout
| Provider | Client pays by | Cost | Effective |
|---|---|---|---|
| Wise Business | Bank transfer | −$14.50 | 0.29% |
| Revolut Business | Bank transfer | −$30.00 | 0.6% |
| Payoneer | Bank transfer | −$109.40 | 2.19% |
| Paddle | Card | −$250.50 | 5.01% |
| Stripe | Card | −$254.60 | 5.09% |
| Whop | Card | −$258.20 | 5.16% |
| Lemon Squeezy | Card | −$297.99 | 5.96% |
| PayPal | Card | −$387.50 | 7.75% |
Between the cheapest option (Wise Business) and the most expensive (PayPal) there is $373.00 on a single invoice. If you bill that every month, it is more than $4,476.05 a year. The figures are the same for any eurozone country; see them for yours on the US to Spain route or in the calculator.
How to ask your client to pay by bank transfer
Most US companies pay suppliers by ACH every day. If you give them US bank details, it is easier for them than a card, not harder. What works:
- Put the US account details on the invoice itself, with the account holder's name exactly as it appears on the account.
- Name ACH as the preferred method. If they can only send a wire, the same details usually work, but check whether your provider charges to receive one.
- Keep card as a fallback for small amounts or one-off clients, and raise the price if you want to pass on the fee (say so up front, never as a surprise).
Setting up receiving details on Wise costs €60 once. On a $5,000.00 invoice it pays for itself on the first payment.
The paperwork your client will ask for
A US company paying someone abroad has to document that you are not a US tax resident, so it does not have to withhold tax. For that it will ask for Form W-8BEN if you are an individual (a sole trader) or Form W-8BEN-E if you invoice as a company. It is not sent to the IRS; you give it to your client and they keep it on file. If they ask for a W-9, that is a mistake: that form is for US persons.
On the invoice, the usual rule in the EU is that a service supplied to a business established outside the EU carries no local VAT, because it is treated as supplied where the client is. The invoice has to say so explicitly. This depends on the service and on your situation, so confirm it with your accountant before the first invoice. This guide is not tax advice.
What I would do
- For recurring clients: US bank details on Wise or similar, paid by ACH. It is the biggest saving you can make in one afternoon.
- For clients who insist on a card: Stripe over PayPal, with the price set to cover the fee.
- Keep part of the balance in dollars if you have costs in dollars. Converting twice means paying twice.
If you want to understand why conversion weighs so much, I explain it in the guide to conversion markups.
Every figure in this guide is calculated from the providers' public pricing pages, with the same function as the calculator. See the methodology for what the model includes and leaves out.