Remote-team payment operations
How to Pay International Contractors: Deel, Wise
To pay an international contractor, agree the contract, invoice currency and payment route first, then pay every invoice through that one route: a bank transfer from a business account such as Wise Business, a contractor platform such as Deel, or the contractor’s Payoneer payment request. Verify the bank details at onboarding, confirm any change by phone, and keep approval, payment and receipt linked to each invoice.
By DmytroUpdated 9 min read
Short answer
- The real working relationship decides whether someone is a contractor. In US federal tax, the IRS test is whether you control only the result of the work, not how it is done; payment software does not change that.
- Pick a route both sides can use: a transfer from a business account (Wise requires a Business account, funded from a business bank account in the same name), Deel, or a Payoneer request the contractor sends you.
- Record verified bank details once, and confirm any change by calling a contact you already have. The person who approves the work should not be the only one who can change bank details.
- If a payment goes missing, ask the sending bank to trace it before you pay again.
Start with the contract, not the payout tool
A payment method does not turn an employee into a contractor or remove local rules.
The IRS says that, under US federal tax rules, a person is generally an independent contractor if you have the right to control or direct only the result of the work, not what will be done and how. That test is American; other countries have their own. Get advice in the countries involved when the work is ongoing or the contractor works mostly for you.
Use a written agreement that matches the real work: the parties, services, deliverables, acceptance, rate, currency, invoicing cycle, notice and governing law, plus confidentiality and intellectual property where relevant.
Tax can be withheld at source. The IRS requires 30% withholding on pay to nonresident aliens for personal services performed in the United States, unless a law or tax treaty exempts it. Check the rules of your own country before the first payment.
Ways to pay an international contractor
Bank transfer, contractor platform or payment request: choose one route per contractor.
A bank transfer from a business account suits a few contractors on direct invoices. Wise requires a Wise Business account for transfers on behalf of a company, and the money must come from a business bank account in the same name as the registered business. Wise prices each transfer by route, currency and payment method.
Deel suits companies that want contractors paid inside one platform. The contractor withdraws to a local bank or Pix with no Deel fee, cross-border for USD 5 or by SWIFT from USD 5, with Deel’s fee capped at USD 10, and pays no subscription (contractor pricing, as of 21 Sep 2026).
A Payoneer payment request suits contractors who already use Payoneer. The contractor sends you a request, and you pay from a Payoneer balance, by card, ACH debit, bank transfer or PayPal, without a Payoneer account of your own. Fees depend on the method, currency and location.
| Route | How it works | Costs and conditions | Good for |
|---|---|---|---|
| Bank transfer from a business account (e.g. Wise Business) | You send money to the contractor’s bank details in the invoice currency | Priced by route, currency and payment method; business account required for company payments | A few contractors on direct invoices |
| Deel | You pay the contractor inside Deel; the contractor withdraws | Contractor withdrawal: local bank USD 0, cross-border USD 5, SWIFT from USD 5 (21 Sep 2026) | Contractors in several countries on one platform |
| Payoneer payment request | The contractor sends a request; you pay online | Balance, card, ACH debit, bank transfer or PayPal; fee by method, currency and location | Contractors who already receive with Payoneer |
| SEPA or SWIFT from your bank | Ordinary bank payment to an IBAN or Swift details | SEPA: full amount arrives; SWIFT: correspondents may deduct, typically USD 20–30 per wire according to Payoneer | Any contractor with a bank account |
Create a payment record before the first invoice
One approved record makes every later payment repeatable and easy to check.
Record the contractor’s exact legal name, the contract reference, the invoice currency, the payment route, where the bank details came from, the reference to use, who approves the work and who owns the budget. Do not store passwords, codes or more identity documents than the route requires.
Ask the contractor to send details through your secure onboarding form or the provider’s portal, and tell them how a change of details will be checked.
| Item | Why it matters | Control |
|---|---|---|
| Verified payee name | Must match the contract and the receiving account | Approved before the first payment and after any change |
| Invoice currency | Decides who carries the conversion | Written in the contract and on each invoice |
| Source of bank details | Shows where the current details came from | Secure onboarding form, not chat or email |
| Approver and budget owner | Separates accepting the work from releasing money | Both named for recurring payments |
Verify bank-detail changes outside the request
A changed bank account is the main fraud risk, even when the email looks familiar.
Business email compromise often looks ordinary: a familiar contractor address asks for payment to a new account, says the old one is closed and asks you not to call. The FBI recommends confirming changes in payment details independently. Call the contractor on a number or video channel already in your record, not one given in the email.
Where you can, split the roles: one person checks the contractor and the new details, another approves the change or releases the payment. Record the date, the person who checked, the channel used and the reason for the change.
Checklist
- New bank details are never accepted by reply email alone.
- Changes are confirmed through a channel already in the contractor record.
- Payee name, currency and account details are compared with the contract.
- Checking the details and releasing the payment are separate roles.
- The check is recorded without storing passwords or one-time codes.
Approve the work, then release the payment
Accepting a deliverable does not authorise a new bank account.
For each invoice, record the accepted work, the amount and currency, the budget approval and which version of the bank details you are paying to.
Example (assuming a USD 6 sender fee per payment): contractor A is due USD 1,200 at verified details, and contractor B is due USD 800 but has sent an unverified change of account. The batch needs USD 2,012. Release A’s payment (USD 1,206) and keep USD 806 aside for B. Call B on the number in your record, confirm the change, then pay; do not use B’s old account without checking it is still valid.
For a new contractor, country or bank, an agreed small first payment can catch a wrong detail before a large one. It is not a way to split a payment to avoid a provider’s checks.
Step by step
- Confirm the contractor’s details against the approved record.
- Approve the completed work and the invoice amount.
- Pay only through the agreed route, with the invoice number as the reference.
- Save the confirmation and transaction reference with the invoice.
- If the contractor reports a problem, trace the payment before paying again.
Delays, moves and the end of a contract
Decide in advance who handles each exception.
Name who tells the contractor about a delay, who opens a support case and who may approve a temporary alternative. Tell the contractor what you know and what you are waiting for rather than promising a date.
When the work ends, settle the final invoice and expenses, remove the contractor’s access, close any open payment request and keep the records for as long as your rules require.
| Event | First action | Control to keep |
|---|---|---|
| Payment delayed | Ask the sending bank or provider to trace it | One case record; no second payment yet |
| Change of bank details | Confirm through a known contact before changing the record | Two people involved and a change log |
| Contractor moves country | Review the payment route, tax and contract | Written update before the next invoice |
| Contract ends | Reconcile the final work and payment | Access removed, records kept |
FAQ
What is the easiest way to pay an international contractor?
A bank transfer in the invoice currency from a business account works for a few contractors. Deel keeps several contractors in one platform, with contractor withdrawals from USD 0 to a local bank (as of 21 Sep 2026). If the contractor uses Payoneer, you can pay its request by card, ACH debit or bank transfer.
What should I collect before the first payment?
The contractor’s legal name, the signed agreement, the invoice, the currency, bank or payout details from a secure source, and a contact for confirming changes. Keep it in an access-controlled system.
Should I pay in USD or the contractor’s currency?
Pay in the currency written in the contract. If you hold a different currency, decide in the contract who carries the conversion, and change the currency only by updating the contract or invoice.
Who pays international transfer fees?
Agree it in the contract. A SEPA transfer arrives in full, while a SWIFT payment can lose correspondent fees on the way, so state what happens if less arrives than the invoice.
The contractor says the payment has not arrived. What now?
Check that you paid the verified details, then send the contractor the confirmation and reference and ask your bank or provider to trace the payment. Pay again only after the first payment is returned or confirmed lost.
Sources
- Independent contractor defined: US federal tax context — IRS
- Pay for personal services performed — Internal Revenue Service
- How do I send money as a business? — Wise
- About withdrawal fees and withdrawal minimums — Deel
- Online invoice payment requests — Payoneer
- Payoneer receiving accounts — Payoneer
- SEPA Credit Transfer — European Payments Council
- Business Email Compromise — FBI
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