The 30-Second Summary
- Pay contractors in the euro area by SEPA or SEPA Instant, and contractors elsewhere by SWIFT in the currency on their invoice.
- On SWIFT transfers, the charge code decides who pays. With SHA or BEN, intermediary banks can deduct fees and the contractor receives less than the invoice. With OUR, the sender covers them.
- PayDo pays contractors from one Business Account: SEPA and SEPA Instant for euros, Mass Payments via API in EUR and GBP, and SWIFT transfers in other currencies.
To pay international contractors in multiple currencies, agree the payment currency in each contract, hold the currencies you pay most often, and send each payment over the rail that reaches the contractor’s account at the lowest cost. Then agree who pays transfer fees, so the full invoice amount arrives.
Most guides on this topic are written for US companies and focus on US tax forms. This one is for companies in Europe paying developers, designers and other contractors across the EU and beyond.
Agree the payment currency in the contract
The invoice currency decides who carries the exchange rate. Pay in the contractor’s currency and the conversion sits with you. Pay in euros and it sits with them.
Fix the currency, the pay date and who pays transfer fees in each contract. Holding balances in the currencies you pay every month means you convert when the rate suits you, instead of on every payment.
Choose the payment rail by currency and country
Use SEPA Instant for euro contractors in SEPA countries and SWIFT for other currencies and countries. The contractor’s account details tell you which one applies.
| Contractor account | Rail | Typical speed |
|---|---|---|
| EUR account in a SEPA country | SEPA Instant | Up to 10 seconds |
| EUR account in a SEPA country | SEPA Credit Transfer | Same or next business day |
| GBP account in the UK | Faster Payments | Seconds |
| Other currencies or countries | SWIFT | Hours to several days |
Since 9 October 2025, payment providers in the euro area may not charge more for an instant euro transfer than for a standard one. Outside the 89 countries that use IBANs, such as the United States, you need the contractor’s account number, a bank routing code and the bank’s SWIFT code.
Decide who pays SWIFT fees
Every SWIFT transfer carries a charge code. OUR means the sender pays all fees. SHA splits them, and BEN puts all fees on the contractor.
With SHA or BEN, intermediary bank fees can be deducted from the amount, so the contractor receives less than the invoice. Correspondent banks typically charge $5–30 each, and the receiving bank $10–20. For invoices that must arrive in full, send with OUR and include the fee in your payment budget.
Run contractor payments as a monthly process
Collect payment details once, check them before the first payment and pay on a fixed date. Most failed or delayed contractor payments come from wrong details or unclear timing.
- Collect each contractor’s legal name, IBAN or account number, bank SWIFT code and payment currency at onboarding.
- Check the name matches the account holder. Since October 2025, euro transfers come with a payee name check, and a mismatch triggers a warning.
- Fix the pay date, currency and charge code in the contract.
- Pay euro contractors in one payout run on the agreed date.
- Send each contractor the payment reference, and keep it with the invoice for accounting.
For platforms paying many sellers rather than a team of contractors, see fast payouts to sellers on digital goods platforms.
Why PayDo fits companies paying contractors abroad
PayDo pays contractors in several currencies from one Business Account, opened in 3–5 business days.
- Euro contractors. SEPA and SEPA Instant transfers, so euro payments settle in seconds.
- Contractors outside the euro area. SWIFT transfers in other currencies from the same account.
- Payout runs. Mass Payments via API in EUR and GBP.
- Currencies you pay every month. Hold balances in several currencies and convert inside the account.
- Clients pay you in your name. A dedicated IBAN in your company’s name for incoming payments.
- One person to call. A dedicated account manager from onboarding onwards.
To open a PayDo Business Account, send your company details and monthly contractor payment volume to the PayDo sales team. What to check in the account itself is covered in multicurrency business account with an IBAN.
FAQ
Can PayDo pay international contractors in multiple currencies?
Yes. PayDo pays contractors over SEPA and SEPA Instant in euros, through Mass Payments via API in EUR and GBP, and by SWIFT in other currencies, all from one Business Account.
What is the cheapest way to pay a contractor in Europe?
For euro accounts in SEPA countries, a SEPA transfer. Since October 2025, euro area providers may not charge more for SEPA Instant than for a standard transfer.
What do OUR, SHA and BEN mean on a SWIFT transfer?
OUR means the sender pays all fees. SHA splits fees between sender and recipient, and BEN means the recipient pays all fees, deducted from the amount.
Why did my contractor receive less than the invoice?
On SHA or BEN transfers, intermediary and receiving banks can deduct their fees from the amount. Sending with OUR covers these fees on your side.
Do I need a contractor’s IBAN to pay them?
In the 89 countries that use IBANs, yes. In countries such as the United States, you need the account number, a routing code and the bank’s SWIFT code.
