One major difference between a traditional employee and an independent contractor or freelancer is how they manage taxes. A regular employee has their employer withholding their taxes; a contractor has to file their taxes on their own. And that might be the most boring part of being self-employed

A 1099 form is a US tax document that reports income you earned outside a regular salary, such as freelance or contract work. The payer sends it to you and the IRS. The most common type is the 1099-NEC for non-employee pay. If you were paid as an independent contractor, you usually get a 1099.

If you have started freelancing, taken on contract work, or received income outside a traditional paycheck, understanding what a 1099 form actually is will make tax season significantly less confusing. This guide explains what a 1099 form is, the most common types, who receives them, and how they differ from a W-2, so you can head into tax season with a clearer picture.

What is a 1099 form?

Form 1099 refers to a group of IRS information returns specifically used to report earnings separate from regular employee wages. It typically covers independent contractor payments, freelance earnings, interest, dividends, and rent.

It is important to clarify that Form 1099 does not refer to a single "1099 form", but a series of forms. Each form has a suffix that indicates the type of income it covers. For example, if you are a freelancer and an independent contractor, the 1099-NEC is the form you are more likely to use to file your taxes.

The client, company, or financial institution that pays you issues the Form 1099 and sends copies to you and the IRS. The form tells the IRS that a specific amount was paid to a specific person or business during the tax year, so that income can be matched against what you report on your own tax return. If the amounts don't match, it may trigger an IRS inquiry.

Common types of 1099 forms

According to the IRS, each form type has its own relevance and rules.

Who gets a 1099?

You may receive a 1099 if you earn income outside of traditional employment. Here are different categories of people who get a 1099.

• Independent contractors and freelancers: If a business pays you $2,000 or more for services as a contractor, it may need to send you a 1099-NEC. The threshold used to be $600, but it has recently been increased for the 2026 tax year.
• Gig workers: Rideshare drivers, delivery workers and other gig workers may receive a 1099-NEC or 1099-K, depending on how they are paid and the applicable reporting rules.
• Landlords and property owners: Property owners receiving rent are sometimes reported on a 1099-MISC.
• Investors: Banks and investment platforms use forms such as 1099-INT and 1099-DIV to report interest and dividend income.

The reporting threshold usually depends on the 1099 type and may change. So, don't assume that receiving or not receiving a form determines whether income is taxable.

For a more detailed breakdown on who gets a 1099, see our guide on what a 1099 employee is.

1099 vs W-2: What is the difference?

The 1099 and W-2 are both tax reporting forms, but they apply to different groups of people.

Form W-2 (employees)

A Form W-2 is a wage and tax statement document that employers must send to their employees and the IRS by January 31 each year. The form reports an employee’s total income from that job and the taxes that were withheld during the year.

In a traditional employment relationship, the employer automatically deducts income tax, Social Security, and Medicare from each paycheck. The employer also pays a matching share of Social Security and Medicare. At the end of the year, the employee receives a W-2 that shows how much they earned and the amounts already paid in taxes.

Form 1099 (freelancers and independent contractors)

On the other hand, if you are self-employed as an independent contractor or freelancer, your client doesn’t withhold your taxes, Medicare, or Social Security from your pay. The client also doesn’t pay a matching contribution. So, the full tax burden falls on you.

You are responsible for calculating and paying both income tax and self-employment tax, usually estimated and paid quarterly. And since you don’t have an employer, the self-employment tax covers both the employee and employer portions of Social Security and Medicare that would normally be shared in a traditional job.

The difference between W-2 and 1099

In practice, the main difference is that a 1099 worker must set aside money for taxes throughout the year because no taxes are automatically withheld, whereas a W-2 employee’s taxes are deducted from their pay before they receive it.

For a full side-by-side comparison, see our guide on 1099 vs W-2 explained.

Getting paid as a 1099 worker

If you are a 1099 worker, like a freelancer or independent contractor, you are in charge of your taxes and how you receive your income. Many 1099 workers work with multiple clients, sometimes across different countries and currencies.

If your clients are within the US, standard domestic bank transfers or payment platforms are typically straightforward. If you are based outside the US but earning 1099 income from US clients, receiving payment efficiently becomes a more significant practical consideration.

Receiving foreign-currency income in your local bank account means the money arrives via an international wire transfer. After the sender initiates the transfer, the money passes through one or more banks before reaching your account. Each bank charges about $10 to $30 to process the payment. And when the money finally gets to you, your bank automatically converts the payment to your local currency, usually at an exchange rate with a 1-5% hidden margin.

In the end, you might be losing over $50 on a $1,000 payment. And because the money goes through multiple banks, an international wire could take up to five days to complete.

An alternative is to open a multicurrency account that gives you access to USD, EUR, and GBP account details. This way, international clients can pay you in these currencies as if they were making a local transaction in their country. You can hold payments in these currencies and convert them whenever you like at a disclosed exchange rate.

Opening a USD account with Grey gives you US account details, including a routing number and account number, even if you don’t live in the US. Your US clients can pay you via ACH without worrying about international wire fees. You can also get paid from the US and send money internationally from the US on Grey.

Grey offers EUR and GBP accounts to receive payments via SEPA or Faster Payments from EU and UK clients. Grey deposit fee is 0.8%, and capped at 10 USD/EUR/GBP. Conversion fees depend on the currency pair, but are usually 0.5% to 1%, and sometimes capped at $6.

Signing up on Grey takes only a few minutes. Get paid in USD with Grey as an independent contractor or freelancer working with US clients from anywhere and avoid international wire fees.

Frequently asked questions about the 1099 form

What is a 1099 form used for?

A 1099 form reports income paid to someone outside regular employment wages, such as freelance or contract payments, rental income, interest, or dividends. The payer sends copies to both the recipient and the IRS, allowing the IRS to verify that the income reported on the recipient's tax return matches what was actually paid.

What is the difference between 1099-NEC and 1099-MISC?

The 1099-NEC specifically reports non-employee compensation, meaning payments for services performed by an independent contractor or freelancer. The 1099-MISC reports other categories of miscellaneous income, such as rent, prizes and awards, and certain legal settlements. Before 2020, contractor payments were reported on the 1099-MISC, but the IRS introduced the separate 1099-NEC specifically to distinguish non-employee compensation from these other miscellaneous categories.

Who has to file a 1099?

The business or individual who paid the income must file and issue the 1099, not the recipient. If you paid an independent contractor $600 or more during the tax year for services, you are generally required to issue them a 1099-NEC and file a copy with the IRS. As a recipient, you do not file the 1099 itself, but you must report the income shown on it on your own tax return.

Do I get a 1099 or a W-2?

This depends entirely on your working relationship with the payer, not on what either party calls it. If you are classified as an employee (with the payer controlling how, when, and where you work, providing your tools, and withholding taxes from your pay), you receive a W-2. If you are an independent contractor operating with genuine independence over how you complete the work, you receive a 1099.

What if I do not receive my 1099?

You are still legally required to report the income on your tax return even if you never receive the 1099 form, since the income itself, not the form, is what triggers your tax obligation. If a payer owed you $2,000 or more and hasn't sent your 1099 by early February, contact them directly to request it. Keep your own records of income received throughout the year, specifically to protect yourself in situations like this.

How do international contractors get paid?

International contractors working with US clients can receive payment most efficiently through a USD account with real US banking details, allowing the US client to pay via ACH as they would a domestic contractor and avoiding international wire fees and unfavourable conversion rates. Grey provides this setup, giving international freelancers and contractors a genuine US routing number and account number without requiring US residency.

Opening a US bank account can be useful for international entrepreneurs, remote workers and people who regularly receive or spend money in the United States. But if you live outside the country, the process is not always as straightforward as opening an account with a local bank. The requirements depend on your immigration status, identification, address and the type of account you want.

Chase is one of the largest banks in the US, making it a natural option for anyone looking for access to the American banking system. However, there is an important distinction for non-US residents: Chase does not operate a dedicated banking programme specifically designed for people living abroad.

In practice, opening an account may require an in-person visit to a US branch, a US address, valid identification and a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN), depending on your circumstances. This guide explains what to expect, where the process can become difficult and what alternatives may be available if you do not have a US address.

Can a non-resident open a Chase account?

Yes, while a non-resident can open a Chase bank account,  Chase does not offer a dedicated non-resident banking programme that allows people living abroad to open an account entirely online.

For most non-residents, the process requires applying in person at a Chase branch in the United States. In other words, being outside the US does not automatically prevent you from becoming a Chase customer, but you generally need to be physically present in the country to complete the application.

This makes Chase less convenient for someone hoping to open a US bank account remotely before travelling to America. The in-branch requirement is one of the biggest practical hurdles for non-residents, particularly if there is no nearby US branch or an upcoming trip to the country.

So, while opening a Chase account as a non-resident is possible, it is generally not an option you can set up entirely from overseas.

What you need to open a Chase account

Opening a Chase account as a non-resident involves more than simply showing up at a branch. Having the right information and documents ready can make the appointment much smoother and reduce the chance of having to make another trip.

A US address

A US residential address is generally required when applying. This can be one of the biggest hurdles for people who live outside the country, so it is worth confirming what Chase will accept before visiting a branch.

Two forms of identification

Chase generally asks for two forms of ID. A valid passport is typically one of them, while the second identification document may depend on your circumstances.

SSN or ITIN

An applicant may need to provide a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN), depending on their situation and the account being opened.

Opening deposit

Some Chase accounts require an opening deposit. The amount varies depending on the account type, so check the specific account requirements before heading to the branch.

Also read: How to open a USD bank account remotely

Where Chase falls short for non-residents

1. Opening an account requires a branch visit

For someone living outside the US, getting to a Chase branch can be the first major hurdle. The account-opening process generally requires an in-person visit, so there is no straightforward way to complete everything remotely from overseas.

2. A US address can be a major hurdle

Chase generally requires a verified US residential address, which can make the process difficult for people who genuinely live abroad. Having US-related financial needs does not necessarily solve the address requirement, particularly for applicants without an established US residence.

3. International transfers can become expensive

Sending money internationally through a traditional bank can involve more than the advertised transfer fee. Exchange-rate markups can increase the overall cost, particularly for people who regularly move money between US dollars and another currency.

Also read: How to open a US bank account as a temporary visitor or on a visit visa

How to get US banking details without a US address

A US bank account can be difficult to access when there is no US residential address to provide. For international freelancers, remote workers and business owners, this can create a frustrating gap: clients may want to pay by ACH, but opening a traditional US bank account from abroad is not always straightforward.

Grey offers another route for eligible users. Its USD account provides US ACH routing details through Grey’s partner bank, Lead Bank, and the account can be opened online. That means there is no need to make a trip to the US branch simply to get US banking details.

The account can be useful for receiving USD payments from eligible US-based clients and businesses, while keeping access to the funds through Grey. For someone living outside the US, this can provide a more practical way to access US payment rails without going through the traditional process of opening a US bank account.

Frequently asked questions

Can I open a Chase account online from abroad?

No. Chase generally requires non-residents to open an account in person at a physical branch in the United States. There is no dependable online route for completing the entire application from overseas. For anyone living abroad, this means planning a US visit before the account can be opened.

Do I need an SSN?

Not necessarily. Depending on your circumstances and the account being opened, Chase may accept an Individual Taxpayer Identification Number (ITIN) or other identification, including a valid foreign passport. Requirements can vary, so it is worth confirming with the specific Chase branch before making the trip.

Can a tourist open a Chase account?

A tourist may be able to open a Chase account, but visiting the US does not automatically guarantee approval. Applicants generally need to meet Chase's identification and address requirements, including providing a verifiable physical US residential street address. Individual circumstances and account requirements can affect the outcome.

What is the minimum deposit?

There is no minimum deposit required to open a standard Chase checking account. However, specific Chase account types can have different funding requirements, fees or conditions. It is important to check the particular account before applying, especially if opening one as a non-resident or during a visit to the United States.

Selling products or earning through Amazon’s affiliate and freelance platforms is a great way to tap into global income streams. But for many South Africans, there’s one persistent challenge — how do you get paid?

That’s where Grey comes in. Grey gives South Africans access to virtual foreign accounts, so you can get paid in Amazon’s preferred currencies and easily convert or withdraw your money.

In this guide, I’ll show you exactly how to get paid by Amazon in South Africa with Grey.

How Amazon pays sellers, affiliates, and freelancers

Amazon uses a standardised system to distribute earnings. You will receive your payouts directly to the bank details you provide.

Here’s how it works:

• Earnings calculation: Amazon deducts fees and refunds from your sales or commissions.
• Payment cycles: Most payouts are made every 14 days (biweekly), but this may vary depending on account type and region.
• Currency: Amazon disburses funds in the local currency of the marketplace (e.g., USD for Amazon.com, GBP for Amazon UK), so a multi-currency account is essential.
• Bank account requirements: You must add a compatible bank account that matches the payout currency — this is where Grey becomes your best option.

Also read: How to get paid by Amazon in Nigeria, Kenya, and Tanzania with Grey

Why Grey is the best way to get paid by Amazon in South Africa

Grey is a cross-border financial platform that makes international payments easy for freelancers, digital entrepreneurs, and remote workers. With a Grey account, you can:

• Create virtual USD, GBP, and EUR accounts — perfect for receiving Amazon payouts.
• Receive payments directly into your foreign account without delays or rejections.
• Convert funds to South African rand (ZAR) at competitive exchange rates.
• Withdraw funds locally to your bank account or mobile wallet.

Also read: How freelancers in South Africa can receive payments from the US, UK & EU clients

Step-by-step: How to get paid by Amazon using Grey

Here’s how to set up and receive your Amazon payments through Grey:

1. Open a Grey account

Visit the Grey website or download the Grey app and sign up for free. Fill in your name, email, and phone number to get started.

2. Verify your identity

Upload a valid ID, proof of address, and a selfie. This is required to activate your virtual foreign bank accounts.

3. Generate your bank account details

Once verified, you can create foreign accounts (USD, GBP, or EUR) from your Grey dashboard. These include:

• IBAN
• SWIFT/BIC
• Account number
• Bank name and address

4. Add Grey account to Amazon Seller Central or Affiliate dashboard

• Go to Amazon Seller Central or your Amazon Affiliate dashboard.
• Navigate to Settings > Payment Information.
• Select “Add new bank account”.
• Enter your Grey-provided virtual bank account details in the correct currency (e.g., USD for Amazon.com).
• Save changes.

5. Get paid and withdraw

Once Amazon releases your funds, they’ll arrive in your Grey account. You can:

• Hold in foreign currency until the exchange rate favours you.
• Convert to ZAR at competitive rates.
• Withdraw directly to your local South African bank account.

Also read: How to open a US and UK bank account in South Africa

Tips to make the most of your Amazon payouts with Grey

Here are a few ways you can maximize your Amazon payouts with Grey.

• Avoid instant conversions if the exchange rate is low — Grey lets you hold multiple currencies.
• Track your payments in real time using the Grey app or website.
• Split payouts if you have multiple Amazon accounts or freelance gigs.
• Stay compliant by keeping a record of your foreign payments for tax purposes.

Get paid by Amazon in South Africa

With Grey, getting paid by Amazon in South Africa is fast, affordable, and stress-free. No more rejected payments, currency conversion issues, or high international transfer fees.

If you’re ready to simplify your finances and get paid like a pro, create your Grey account today or download the app to receive Amazon payouts in USD, GBP, or EUR and convert them to rand with ease.

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There’s a US-based consultant somewhere who just signed a contract with a client in a European country. The client has insisted they’ll pay in EUR and wants to send via SEPA, as their finance team is avoiding international wire transfers. Unfortunately, this consultant’s US bank account isn’t set up to receive SEPA transfers, and every time he converts EUR to USD through his local bank, he loses 3-4% of the payment before it even hits his balance.

If that scenario sounds a bit too distant, you’ll perhaps be able to relate better with Sharon, who works in New York but plans to retire in Portugal in three years and wants to build a local financial presence before she gets there.

In each of these situations, the solution is the same. They both need a bank account outside the United States. And the first question most people ask when they start looking into it is whether it’s even legal.

Easy answer, it is. Millions of US citizens hold foreign bank accounts for ordinary reasons. The process is more straightforward than most people expect, and the complications that do exist are mostly on the reporting side, not the opening side. Here, I’ll be walking through both.

What is an offshore bank account?

The phrase “offshore bank account” carries a bit of baggage that it doesn’t deserve. Most people picture secretive numbered accounts in tax havens, shell companies, or the kind of thing that ends with a congressional hearing. No thanks to Hollywood.

The reality is a lot simpler. An offshore bank account is a bank account held in a country other than where you live or where you’re a tax resident.

For example, a US citizen living in Chicago who opens a current account at a bank in Germany has an offshore bank account. So does a freelancer in New York who opens a multi-currency account to receive GBP from a London client.

People generally open offshore accounts for three main legitimate reasons.

1. To manage foreign income.
   If you earn in a foreign currency and convert everything back to USD through your US bank every time a payment arrives, you’ll be paying a conversion spread on every single transaction, typically 3 to 5% at traditional banks. Holding the money in the currency you earned it in and converting only what you need reduces that cost significantly.
2. When preparing for relocation or extended travel
   Building a financial presence in another country before you move there is practical. It means you arrive with a functioning local account rather than spending your first weeks abroad trying to open one as a non-resident.
3. Currency diversification
   Some US citizens want to hold a portion of their savings in a non-dollar currency, whether as a hedge, for travel convenience, or in anticipation of spending abroad. This is a straightforward financial decision with no legal complications, provided the reporting obligations are met.

An offshore account is not a way to hide money from the IRS. The US government has extensive mechanisms for tracking foreign accounts held by its citizens, and there are penalties for failing to report them. The reporting requirements deserve a lot of attention, so that’s where we’ll start.

The legal and reporting framework every US citizen must understand

There are two primary reporting obligations for US citizens with foreign accounts.

FBAR: FinCEN Form 114

The Foreign Bank Account Report, filed through FinCEN (the Financial Crimes Enforcement Network), is required if the combined balance of all your foreign financial accounts exceeds $10,000 at any point during the calendar year, not just at year-end.

The annual deadline is April 15th of the following year, with an automatic extension to October 15th. Filing is done electronically through the BSA E-Filing System. There is no filing fee.

The penalties for non-compliance are where this gets serious. For non-wilful failure to file, the penalty can reach $10,000 per violation per year. For wilful failure, the penalty can exceed $100,000 or 50% of the account balance per violation. Courts have interpreted “wilful” broadly, and “I didn’t know I had to file” has not consistently held up as a defence.

The FBAR is not filed with your tax return. It’s a separate filing with a separate agency.

FATCA: Form 8938

The Foreign Account Tax Compliance Act introduced a second reporting layer. Form 8938 is filed with your regular federal tax return and covers foreign financial assets above certain thresholds.

For single filers living in the US, the threshold is $50,000 at year-end or $75,000 at any point during the year. For married filers living in the US, it’s $100,000 at year-end or $150,000 at any point. The thresholds are higher for US citizens living abroad.

FATCA and FBAR cover overlapping but not identical territory, and you may be required to file both. Filing one does not satisfy the obligation to file the other.

Foreign income remains taxable

Holding money in a foreign bank account does not change your US tax liability on that money. Income earned abroad, whether from a foreign employer, a freelance client, or investments, is still subject to US income tax. The account is just where the money sits. The IRS taxes the income, not the location of the account.

The rules around FBAR, FATCA, and foreign income taxation are genuinely complex, and the consequences of getting them wrong are expensive. If your situation involves significant foreign balances or income, consult a certified tax professional before opening an account.

Do you actually need a traditional offshore account?

Before walking through the opening process, it’s worth being honest about whether you need this account or not.

A traditional offshore bank account, the kind at a private bank in Switzerland or a retail bank in Germany, involves real minimum balances, documentation requirements, and in many cases a physical visit or notarised paperwork. For some, that’s exactly the right solution. For others, it’s much more than they need.

You’ll need a traditional banking account if:

• You’re relocating permanently or for an extended period and need genuine local banking infrastructure.
• You’re holding significant assets (typically $50,000 or more) in a foreign currency for investment or diversification purposes.
• You need access to banking services in another country, such as local loans, investment accounts, or trade finance.

You’ll need a multi-currency account, not a traditional offshore account, if:

• You’re receiving foreign income from clients or employers and want to avoid conversion fees.
• You want local banking details (a SEPA IBAN, a UK sort code, a US routing number) to give to international clients without routing everything through international wires.
• You want to hold multiple currency balances and convert at your own timing rather than being forced to convert on receipt.

The distinction matters because the processes, costs, and realistic accessibility of these two options are very different. Most people asking “how do I open an offshore bank account” actually need the second option.

Traditional foreign banks have significantly reduced their US client onboarding since FATCA was introduced in 2010, because FATCA compliance costs are substantial for foreign financial institutions. Many simply don’t take new US clients anymore.

Multi-currency fintech accounts have filled a large part of that gap. They’re more accessible, open faster, and better suited to the foreign income management use case most US citizens actually have.

How to open an offshore bank account

Whether you’re opening a traditional account or a multi-currency account, the process follows a similar sequence.

Step one: Choose your jurisdiction

For traditional offshore accounts, the most accessible jurisdictions for US citizens in 2026 are Canada, the UK, Germany, the Netherlands, and some Caribbean banking centres. Historically popular jurisdictions, such as Switzerland and the Cayman Islands, have significantly reduced their intake of US clients due to FATCA compliance costs.

For multi-currency accounts, jurisdiction is less relevant because the account is digital-first and the provider usually holds licences across multiple regulatory environments.

Step two: Decide on the type of account

Current account or savings account at a traditional foreign bank, or a multi-currency account at a regulated fintech platform. The right answer depends on what you identified in the previous section.

Step three: Gather your documentation

For traditional foreign banks, you’ll typically need:

• A valid US passport
• Proof of US address (utility bill or bank statement dated within 90 days)
• Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
• A completed W-9 form (most foreign banks require this under FATCA to confirm your US taxpayer status)
• Source of funds documentation for accounts above a certain balance threshold
• Some banks require in-person verification or notarised copies of documents, which adds time and cost if you’re opening remotely

For multi-currency fintech accounts, the documentation requirements are lighter. A valid passport, proof of address, and identity verification through the platform’s KYC process are typically sufficient. You typically won’t need a W-9, notarisation, or a branch visit.

Step four: Apply and complete verification

Traditional foreign banks can take weeks to process applications, particularly for US citizens, where FATCA review adds a compliance layer. Some require an introduction from a relationship manager before an application is even accepted.

Most fintech platforms complete digital KYC verification within one to three business days in most cases.

Step five: Fund the account and understand the ongoing cost structure

The first funding transaction is where fees matter most. Understand the conversion spread on your initial deposit, the ongoing maintenance fee structure (if any), and what it costs to move money in and out. This is covered in the comparison section below.

Also read: Offshore bank accounts: What’s realistic in 2026

Grey: multi-currency banking for US citizens managing foreign income

If what you need is foreign banking details, multi-currency balance management, and a cost structure that doesn’t eat into your income, Grey will work perfectly.

With a Grey account, you get actual local banking details across multiple currencies. A US routing number and account number for USD. A SEPA IBAN for EUR. A UK sort code and account number for GBP. This way, your employers can pay you through their local payment network, the same way they pay any local vendor.

Setting up a Grey account is digital and takes only minutes to get started. KYC verification typically completes within a few business days. Once verified, your account details are available immediately. Fund it via ACH, SEPA, or Faster Payments, hold balances in the currencies you earn, and convert only when you need to, at a rate that’s shown to you before you confirm.

The fee structure is straightforward. Deposits via ACH, SEPA, or Faster Payments are charged at 0.8%, with a minimum of $2/€2/£2 and a maximum of $10/€10/£10. Currency conversion is charged at 1%, capped at $6.

You can also create a virtual USD card to pay for foreign subscriptions like AWS, Figma, or Google Ads. The card costs $5 to create with no monthly fee, but cross-border card transactions (non-USD purchases on a USD card) incur a 2% fee plus $0.50.

Grey is regulated by FINTRAC and FinCEN. Customer funds are held in segregated accounts at licensed partner banks, separate from Grey's operational capital.

Grey is not a replacement for the FBAR or FATCA reporting obligations described earlier in this article. Your Grey account, like any foreign financial account, counts toward your FBAR threshold calculation. The account provides infrastructure, not tax relief. If your combined foreign account balances exceed $10,000 at any point during the year, the filing obligation applies.

Also read: What “offshore account” really means for freelancers

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Making banking work for you

Opening an offshore bank account as a US citizen is legal, accessible, and practical for anyone earning in foreign currencies, planning to move abroad, or managing multi-currency expenses. The complications are mostly on the reporting side: FBAR and FATCA, which apply regardless of which type of account you open or which provider you use.

The type of account you need depends entirely on your situation. If you’re relocating permanently or holding significant assets abroad, a traditional foreign banking relationship may be the right fit. If you’re managing foreign income, paying international clients, or simply want local banking details in multiple currencies, a multi-currency account gives you what you need at a fraction of the cost and complexity.

Open your Grey account today and experience a smarter way to bank beyond borders.

Frequently asked questions

Is it legal for a US citizen to open an offshore bank account?
‍Yes, it is, but you have to report correctly to the US government. If your combined foreign account balances exceed $10,000 at any point during the year, you must file an FBAR (FinCEN Form 114) by April 15th of the following year, with an automatic extension to October 15th.

Do I have to pay US taxes on money held in an offshore account?
‍Yes. The location of your bank account does not affect your US tax liability. All income earned by US citizens, regardless of where it is held, is subject to US federal income tax.

What is the difference between FBAR and FATCA reporting?
‍The FBAR (FinCEN Form 114) is filed with FinCEN if your combined foreign account balances exceed $10,000 at any point during the year. FATCA (Form 8938) is filed with the IRS as part of your regular tax return if your foreign financial assets exceed $50,000 for single filers at year-end ($75,000 at any point during the year). You may be required to file both. Filing one does not replace the other.

Can I open an offshore bank account without visiting the country in person?
‍For multi-currency fintech accounts, yes. KYC verification is completed digitally, typically within one to three business days, with no physical visit required. For traditional foreign banks, the answer depends on the institution and jurisdiction. Many European retail banks require in-person verification or notarised copies of documents for non-resident applicants.

What documents do I need to open an offshore bank account as a US citizen?
‍For digital multi-currency accounts, you typically need a valid US passport and proof of address. For traditional foreign banks, you’ll need a passport, proof of address, a Social Security Number, a completed W-9 form (required under FATCA), and source-of-funds documentation for accounts above certain balance thresholds. Some banks also require a reference from an existing client or relationship manager before accepting a US citizen application.

Grey charges fees on deposits, conversions, and withdrawals. Deposits via ACH, SEPA, or FPS incur a 0.8% fee (minimum $2/€2/£2, maximum $10/€10/£10). Currency conversions are charged at 1%, capped at $6. Withdrawal fees vary by currency: ₦35 for NGN, 0.5% for EUR/GBP (minimum €2/£2, maximum €10/£10), and $0.50 to $0.65 for KES/UGX/TZS. Cross-border card transactions (non-USD purchases on a USD card) incur a 2% fee plus $0.50. Exchange rates are variable and include a margin over the mid-market rate. Always review fees and the rate before confirming a transaction. Visit our pricing page for current rates.

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With the rise of remote work, freelancing, and global trade, receiving international payments securely in Mexico is more important than ever. Many traditional payment methods have high fees, slow processing times, and security risks. Choosing the right international payment solution ensures you receive funds quickly, affordably, and without unnecessary complications.

In 2023, international remittances to Mexico reached $63 billion, reflecting the increasing reliance on cross-border transactions. As global transactions grow, so does the need for secure and efficient payment solutions.

In this article, I’ll explore why secure payment methods matter, the best options available in Mexico, and why Grey is the ideal choice for hassle-free international transactions.

Why you need a secure way to receive international payments

Avoid scams:  International transactions can be vulnerable to fraud. Using secure platforms ensures your payments are protected from unauthorized access and scams.

Fast and reliable transactions: Delayed payments can disrupt cash flow, especially for freelancers and businesses relying on timely income. A secure payment system ensures quick and consistent transactions.

Lower transaction costs:  Some payment methods have hidden fees and unfavourable exchange rates. Choosing a secure and cost-effective option helps maximize your earnings.

Regulatory compliance: Mexico has strict financial regulations. Secure international payment platforms comply with legal requirements, ensuring smooth transactions without legal issues.

Also read: How to get an instant USD debit card in Mexico

Ways to receive international payments in Mexico

Regular bank transfers: Major banks like BBVA, Santander, and Banorte allow international wire transfers, but they often come with high fees and slow processing times.

PayPal:  This is a popular option for freelancers and e-commerce businesses, but currency conversion rates can reduce your earnings.

Western Union & MoneyGram: These services are useful for receiving cash quickly, but fees and in-person pickups may not be ideal for regular transactions.

Grey: It provides multi-currency accounts in USD, GBP, and EUR, making it easy to receive international payments and convert funds at competitive exchange rates. With Grey, you can withdraw directly to your local bank account hassle-free.

Why Grey is the best way to receive international payments in Mexico

Multi-currency accounts: Receive payments in USD, GBP, and EUR without worrying about high conversion fees.

Fast processing: Payments are credited quickly, ensuring steady cash flow.

Competitive exchange rates: Convert and withdraw your funds without losing money on poor exchange rates.

User-friendly platform: The app and web platform make it easy to manage your transactions.

Also read: Best virtual Mastercards for online payments in Egypt

Steps to set up your Grey account

1. Sign up

Register on the Grey website or download the mobile app. Click “Sign Up” and enter your details to create an account.

2. Verify your identity

Upload the required documents, such as your passport, national ID, or driver’s license, for verification. Grey may also request proof of address to enhance security.

3. Create a foreign account

Once verified, you can request a USD, GBP, or EUR account, allowing you to receive international payments directly from clients and businesses. Grey provides official account details, including IBAN, SWIFT code, and account number.

4. Share your payment details

Provide your Grey account details to international clients, employers, or payment platforms like Upwork, Fiverr, Payoneer, or Stripe.

5. Withdraw your funds

Log in to your Grey dashboard to check your balance. Convert your USD, GBP, or EUR to Mexican Pesos (MXN) at competitive exchange rates. Once converted, withdraw your funds directly to your local bank account.

Also read: How to pay for online courses from Mexico with Grey

Secure international payments with Grey

As global transactions continue to grow, having a secure, fast, and cost-effective way to receive international payments in Mexico is essential. Grey offers a seamless solution with multi-currency accounts, competitive exchange rates, and instant withdrawals, ensuring you get paid without hassle.

Create your Grey account today or download the app to enjoy inclusive global banking, designed to carry your dreams across borders.

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International money transfers are a frequent target for scammers looking to exploit unsuspecting people.

Fortunately, secure platforms like Grey provide a safe and transparent way to send money, minimising risks and ensuring peace of mind. This guide highlights common scams, red flags to watch for, and practical tips to help keep your transactions secure.

Also read: How to receive payments from Guru in South Africa in 2025

Common scams targeting money transfers to South Africa

Here are some of the most common scams affecting international money transfers:

1. Romance scams

Fraudsters create fake online profiles and build emotional connections, eventually requesting money for emergencies, travel, or financial hardships.

2. Business opportunity scams

Scammers pose as businesspeople, offering investment deals or franchises in South Africa. They typically request upfront payments for “permits” or “processing fees.”

3. Fake inheritance scams

Victims receive emails or messages claiming they have inherited a large sum of money from a relative in South Africa, but must pay “legal fees” to access it.

4. Family emergency scams

Scammers impersonate distressed relatives or friends, claiming to need urgent financial help for medical emergencies or legal troubles.

5. Online shopping scams

Fraudulent sellers advertise goods on fake e-commerce sites or social media, take payment, and never deliver the promised items.

Also read: How to get an instant USD debit card in South Africa

Red flags to watch out for when sending money to South Africa

Recognising these warning signs can help prevent fraud:

• Urgency: Scammers pressure you to act immediately.
• Unusual payment methods: Requests for payments via unconventional methods should raise suspicion.
• Poor grammar and communication: Many scam messages have spelling errors and inconsistencies.
• Refusal to meet or provide identification: Fraudsters avoid video calls or in-person meetings.
• Too good to be true promises: Unrealistic investment returns or deeply discounted goods are likely scams.
• Lack of verifiable online presence: Legitimate businesses and individuals usually have traceable records.

Also read: How to receive Amazon payments in South Africa

Practical tips for sending money safely to South Africa

1. Verify recipient identity

Before transferring money, confirm the recipient’s details through official channels.

2. Choose secure platforms like Grey

Grey ensures secure transactions, protecting your funds from fraudsters.

3. Research investment opportunities

Before investing in South Africa, verify business credentials, consult financial experts, and check regulatory approvals.

4. Use secure payment methods

Avoid cash transactions or payment platforms without fraud protection.

5. Confirm emergencies independently

Contact family members directly if someone claims to need urgent financial help.

6. Ignore unsolicited financial requests

Be sceptical of unexpected messages asking for money or personal information.

7. Understand payment risks

Avoid risky transactions that lack tracking or refund options. Grey provides a secure, traceable method for payments.

8. Protect personal information

Never share sensitive banking details with unverified contacts.

9. Report suspected scams

If you suspect fraudulent activity, report it immediately to local authorities, your bank, or the transfer service used.

Also read: How to avoid scams when sending money to Algeria

Choose Grey for secure money transfers to South Africa

Scammers are constantly evolving their tactics, but using a trusted platform like Grey significantly reduces the risk. With multi-currency support, secure transactions, and competitive exchange rates, Grey ensures that your money safely reaches its intended destination.

Create your Grey account today or download the app to enjoy inclusive global banking, designed to carry your dreams across borders.

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