Why is the amount the contractor received, less than what they were expecting?
Remote guarantees the local payout and assumes the currency risk from the time the contractor raises their invoice, up to 90 days. This is to hedge against FX volatility, which is factored into the FX rates we use.
If your contractor wishes to bill you, the client, in your currency rather than their local currency, we now guarantee exactly how much we’ll pay out to them and show this to them when they create their invoice. Our new Remote FX Rate covers the ability for us to lock in an FX rate (within tolerance), guarantee the payout amount, and cover payment processing costs so we transparently show exactly how much they’ll get before they submit their invoice.
If your contractor is unhappy with the fees, they can instead create an invoice in their local currency and the client pays the fees, or they could explore the option of opening a virtual currency account in the same currency as the company so payments are all local, enabling them to handle their own FX outside of Remote. We provide all 3 options for contractors to choose from.
The guaranteed payout for contractors only applies to payments processed via Wise and not Stripe.
See also:
Contractor invoicing currency and guaranteed payouts
What are the fees and costs for contractor payouts?
