Contractor invoicing currency and guaranteed payouts

Remote offers two types of FX payout options for contractors, guaranteed FX payouts and non-guaranteed FX payouts.

When contractors submit invoices in their preferred currency, they are guaranteed to receive the full invoiced amount in that currency, no surprises, no hidden losses from exchange rates.

• Certainty for contractors: Contractors know upfront exactly how much they will receive in their chosen currency.
• Fixed exchange rate: When an invoice is generated, Remote locks in an exchange rate and displays it.
• No FX risk for contractors: Remote covers the cost of currency conversion, protects against exchange rate fluctuations, and absorbs transaction processing fees.
• Hedging volatility: Since rates may change between when an invoice is issued and when it’s paid, Remote uses a forward rate to hedge this risk.
• Rate guarantee window: The locked rate is valid for up to 90 days from invoice creation, provided it remains within Remote’s tolerance range.
• Flexible invoicing: Contractors can choose to issue invoices in their own currency or in the customer’s billing/pay-in currency.

When contractors submit invoices in the customer's billing currency, they are paid that exact amount. However, the contractor bears the FX conversion costs when withdrawing to their local currency.

• FX at payment time: The exchange rate is determined on the day the payment is executed, not when the invoice is created.
• Contractor bears FX risk: If exchange rates shift before payout, the contractor receives more or less in their local currency.
• Stripe Connect option: Contractors can set up a Stripe Connect account and invoice in the customer’s billing currency if they prefer this route. No additional transaction fees are applied.

See also: What currency exchange rate does Remote use when paying contractors?

It depends on the invoicing currency:

• Contractor invoices in their own currency → Customer bears FX costs.
  Contractor is guaranteed to receive the exact invoiced amount.
• Contractor invoices in the customer’s billing currency → Contractor bears FX costs.
  Customer pays the exact invoice amount, but the contractor’s payout depends on FX rates at the time of conversion.

Guaranteed FX payouts are available in most cases but with some important exceptions:

• Not available when funds are going into the contractor’s Stripe Connect account
• The following currencies are not eligible for guaranteed payouts:
• • COP
  • JPY
  • UGX
  • BRL