Best payment methods for freelancers working with US clients

Developers, designers, writers, consultants, virtual assistants, and marketers outside the United States collectively earn billions of dollars from American clients every year. A significant portion of that money is lost quietly to transfer fees, exchange rate markups, and payment infrastructure that was never optimised for the people on the receiving end.

This article covers the main payment methods available to freelancers working with US clients, how each one works at a mechanical level, what each one costs in real numbers, and which situation each one suits best.

What US clients actually use to pay

Before comparing platforms, it helps to understand what US clients typically use when paying a contractor. Most US businesses pay through one of four mechanisms:

• ACH transfers, the domestic US electronic payment network, are free or near-free for the sender and are processed entirely within the US banking system.
• Domestic wire transfers, used for larger or more urgent payments, have a sending fee of $25 to $45 from most US banks.
• International wire transfers via SWIFT for recipients without US bank details, with fees on both ends.
• Payment platforms like PayPal, Venmo for Business, or Stripe, which US clients often default to for smaller or less formal arrangements.

The payment method available to you depends entirely on the account details you give your client. If you share a US routing number and account number, your client can pay you via ACH as a domestic transfer. If you share SWIFT details, they send an international wire. If you share a PayPal email, they pay via PayPal. The account details you enter on your invoice determine which route the money moves through and, therefore, what it costs.

ACH to a virtual USD account

This is the most cost-effective option for most freelancers working with US clients. The Automated Clearing House is technically the engine room that manages how money moves in the US banking system. It requires both parties to have US bank accounts and routing numbers.

When a US client initiates an ACH transfer using your US routing number and account number, the money moves directly between their bank and the bank holding your account. From the client's perspective, paying you via ACH is like making a local transaction. It is often free or less than $1.

But opening an account with a traditional US bank requires you to live in the US, have a Social Security Number, and visit the bank in person. And since this isn’t possible for many freelancers, virtual USD accounts step in, providing a USD bank account and routing number. So, when you are paid with these details, it looks just like the client is making a local transaction, even though you are in Manila or Lagos.

Here are some virtual USD account options to look into:

Grey

When you open a virtual USD account through a platform like Grey, you receive a real US routing number and account number issued through Grey's licensed US banking partner. You can share this with your client, who then initiates an ACH transfer. The payment amount arrives in your Grey USD account within one to three business days. You keep the money in USD, convert at mid-market rates, and withdraw to your local bank account at a flat fee per transaction.

Here is what Grey’s fees look like:

• Deposit fee: 0.8%, minimum of $2, maximum of $10
• Conversion fee: 1%, capped at $6
• Withdrawal to local bank: flat fee, depending on the currency

All fees are shown up front, so you know how much you are paying, what you are paying for, and how much you will receive.  You can also link this USD account to your freelancing platform to receive payouts directly in USD.

LDMAG1

Wise

Wise gives freelancers local USD account details, including a routing number and an account number, that accept ACH payments from US clients. It applies a mid-market rate to currency conversions, with a clearly disclosed fee of 0.4% to 1.5%, depending on the currency pair and amount.

What works well:

• The conversion cost is shown before you confirm. There is no markup built into the rate, only a transparent percentage fee.
• For example, on a $2,000 payment converted to naira, the Wise conversion fee ranges from approximately $8 to $30 at the mid-market rate.
• Wise also supports GBP and EUR accounts for UK and European clients, which is useful for freelancers working across multiple markets.

Payoneer

Payoneer also provides a virtual USD account, but the platform has built its reputation on integration with major freelance marketplaces. Upwork, Fiverr, Toptal, Amazon, and dozens of other platforms offer Payoneer as a native payout option. If most of your US client income comes from a marketplace where Payoneer is already integrated, then you have nothing to worry about other than the payment structure.

• Payoneer adds 2% to 3% margin to the exchange rate applied when you withdraw to your local bank account.
• The annual account fee of $29.95 applies if you receive less than $2,000 in 12 months.
• The withdrawal fees are 1-4% of the transaction amount. The exact fees usually depend on the transaction volume and region.

PayPal

PayPal is what many US clients reach for first. It is familiar, American consumers trust it, and for small or informal payments, it requires no additional setup on either side. For international freelancers on the receiving end, the experience is considerably less straightforward.

The cost structure:

• PayPal charges a 4.4% receiving fee plus a fixed fee for international payments. On a $1,000 invoice, that is $44 before anything else happens.
• Withdrawing to a local bank account triggers PayPal's currency conversion at a rate typically 3% to 5% below the mid-market rate. The remaining $956 costs another $29 to $48.
• Total cost on a $1,000 payment: $73 to $92, or 7.3% to 9.2% of the invoice.

Beyond cost, PayPal's limitations in certain countries can be a problem. Many countries can receive PayPal payments, but cannot withdraw directly to a local account.

Contractor platforms

If you are working in a structured, long-term arrangement with a single US employer or client, then contractor platforms like Deel, Remote, and Ripple handle the payment infrastructure on both sides. Here is how they work:

• The US client funds the platform.
• The platform manages the compliance documentation, the contractor agreement, and the currency conversion.
• The platform pays freelancers via local payout methods in their country.

Receive payments from US clients with Grey

Grey gives freelancers outside the US virtual USD accounts with real US routing numbers and account numbers that US clients can pay via ACH directly. Grey also supports GBP and EUR accounts for UK and European clients on the same platform. You can receive payments in USD at low and transparent fees, keep your earnings in USD, convert at competitive rates, and withdraw to your local bank.

Grey is regulated by FinCEN in the United States and FINTRAC in Canada, and it uses layers of encryption to protect your data and transactions while complying with global financial standards. With Grey virtual cards, you can create multiple cards for various uses and spend directly from your multi-currency account without manual top-ups or conversions. These cards can also be linked to Google Pay and Apple Pay, making international spending even more seamless.

Virtual accounts save time and money when receiving payments from US clients. Sign up on Grey and download the app to create your virtual USD account today.

‍