At freelancermap we want to match you with amazing opportunities that benefit both you and your clients. We support international working relationships and that usually means that clients and freelancers are often not based in the same country.
As you may have experienced, when you receive payments from overseas clients, it can be costly.
Banks and PayPal can take up to 8% of your earnings when you get paid. For example, if you’re being paid $2000 by a US client into your European bank account, you could be losing out on €120 each time.
That’s because they convert your client’s money at bad exchange rates and you end up receiving less in your account – and with a PayPal Business account there also is a fee charged just for you to receive foreign currency.
We don’t think that high fees to receive international payments should keep you from taking on a project you could rock regardless of the client’s location. It’s unfair.
That’s why we’re happy to announce our partnership with Wise, that offers a cheaper alternative to PayPal or bank transfers for freelancers working globally. Their Wise multi-currency account is typically up to 5 times cheaper than the banks or PayPal! Sounds great, right?
The account works in multiple countries and currencies, so you have the freedom to work with clients all over the world, without having to worry about bad exchange rates or receiving fees.
It comes with bank account details for the US, Eurozone, UK and Australia, so you can get paid in any of these four currencies for free. This will help you take full advantage of all the global opportunities we have on our site.
>> Find out more about Wise multi-currency account
PayPal international fees: the hidden cost of receiving international payments
It may be second nature for clients to pay you with PayPal or bank transfer. But what if you’re a freelancer based in Europe working with a US client? Or you are a freelancer based in the US but your client is in Australia? It’ll actually be extra expensive for both of you to get paid in euros for your work via PayPal.
If your US client doesn’t have a Euro bank account, international transaction fees to pay you with US dollars, that then get converted into Euros can add up quick. Here’s why it’s expensive to receive international payments via PayPal:
- Your PayPal business account could charge you over a 4% fee to receive the international payment from your client. Meaning you can lose a percentage of your earnings just because you’re receiving a payment in foreign currency into your PayPal business account.
- PayPal can inflate their exchange rates by nearly 4%, which means that after the amount you’re owed in your client’s currency is converted to your local currency, it’s worth almost 4% less than it should be.
Using Wise to get paid is cheaper. Not only will your money be converted at the real exchange rate, but conversion fees start from as low as 0.35% + £0.80 fixed fee. Compared to PayPal, you could save over 8% on each international payment you receive.
Even if you’re paid using your personal PayPal account instead of your business account, you’re still losing out because of the poor exchange rate.
Wise vs PayPal: How much does it really cost?
| Fees/cost | TransferWise | PayPal |
|---|---|---|
| Amount sending (in USD) | $2000 | $2000 |
| Rate quoted by provider (Reuters’ exchange rate =0.8196) | US$ 1 = €0.8196 | US$ 1 = €0.7898 |
| Provider exchange rate markup (in %) | 0% | 3.64% |
| Provider exchange rate markup (in USD) | $0 | $75.46 |
| Upfront transfer fee (in USD) | $9.90 | $0 |
| Total sender fees (in USD) | $9.90 | $75.46 |
| Amount sent to recipient (in EUR) | €1,631.09 | €1,579.71 |
| Recipient fees applied (in EUR) | €0 | €69.76 |
| Recipient fees applied (in %) | 0% | 4.42% |
| Total recipient fees (in EUR) | €0 | €69.76 |
| Final recipient amount (in EUR) | €1631.09 | €1509.95 |
| Total cost of transfer (in USD + EUR) | $9.90 + €0 | $75.46 + €69.76 |
All data was obtained independently by market research company Consumer Intelligence Ltd on January 16 2018, 07:07 UTC. For more information on this view this article here.
How the Wise Multi-Currency Account works and what you get
The Wise multi-currency account makes it seem like you have a bank account in multiple countries. It also gives you the best possible exchange rate every time you send money abroad or convert your money back into your local currency – it’s called, the real one.
Here’s what you get when you open your account for free:
- You get bank account numbers for the US, UK, Australia, and Europe.
- Clients in the US, UK, Australia, and around Europe can pay you in their local currency. Because you have bank account details, it’s a domestic bank transfer, and you avoid receiving fees and high conversion fees
- You can send money anywhere using the real exchange rate
- You can hold up to 29 different foreign currencies in one place
- Your money could be protected from currency fluctuation (exchange rate risk)
- It’s free to transfer money to family and friends in the Eurozone
- Free to open, no monthly management fees. You’ll only see a small, fair fee when you convert between currencies and when you withdraw money to a local bank account
- A Mastercard debit card to spend in up to 29 different currencies wherever you are in the world
How you can activate your Multi-Currency account and get to work today
It’s quick and easy to open your account online.
- Open a Wise account (or log in if you already have one)
- Click on “Balances” and then “Get started”
- Complete your profile and upload your documents to verify your account for security
- Activate US dollars and up to 28 other currencies you want in your account. You can also add money yourself. See all currencies here.
- Start sending and receiving money around the world.
Are you ready to stop paying high fees? Open your Wise account now
