Key takeaways
- The exchange-rate margin is usually the biggest cost.
- Local-currency payouts avoid extra conversion and receiving fees.
- Batch payouts save time and fees.
- Hold the currencies you pay out in, where possible.
Where the fees hide
| Cost | What it is |
|---|---|
| Exchange-rate margin | The gap between your rate and the mid-market rate |
| Wire fees | Charged per payment by your bank |
| Intermediary and receiving fees | Taken by other banks along the way, so recipients get less |
| Double conversion | Converting to USD first, then to the recipient’s currency |
A worked example
A company pays 20 contractors abroad, about US$60,000 a month, worth C$84,228 at the Bank of Canada rate on 27 October 2026.
| Option | Monthly cost above market |
|---|---|
| Big-bank posted rate (about 3.1%) | About C$2,610, plus wire fees |
| Specialist at about 0.5% | About C$420 |
That’s a saving of roughly C$26,000 a year.
How to cut the cost
- Pay in the recipient’s local currency to avoid double conversion.
- Use batch payouts to pay many people at once.
- Hold currencies you pay out in often, and convert when the rate suits you.
- Use an accounts payable tool that pays international invoices from your workflow.
Common mistakes
- Sending USD to contractors who are paid in other currencies.
- Paying each contractor by separate wire.
- Not telling contractors what they’ll receive after fees.
Providers that can help
Compare these providers, then request a free, no-obligation quote.
Batch payouts in 40+ currencies
From 0.48% Conversion fee
Global payouts from multi-currency balances
0.5% Conversion cost
Pay international invoices from your AP workflow
$0 FX transfer feeFAQs
What is the cheapest way to pay international contractors?
Usually a provider that converts close to the mid-market rate and pays out in local currency, often in batches, rather than individual bank wires.
Why do contractors receive less than I sent?
Intermediary and receiving banks can take fees, and a second currency conversion can happen at the recipient’s bank. Paying in local currency through a specialist usually avoids this.
Can I pay a global team in one batch?
Yes. Several providers, including Wise and Airwallex, support paying many recipients in different currencies at once.
Should I pay contractors in USD or their local currency?
Paying in their local currency usually costs less overall and gives them a predictable amount.
Sources: Bank of Canada daily exchange rates; National Bank posted exchange rates, 27 Oct 2026; Wise and Airwallex published pricing.