How to Avoid Losing Commissions as a Freelancer: Benefits of Opening a U.S. Bank Account

Working as a freelancer offers great flexibility and the opportunity to work with international clients, but one of the main challenges is receiving payments without losing a significant portion of your earnings to currency conversion fees, payment platform charges, or intermediaries.

If you're operating from Latin America or any other country, opening a U.S. bank account can be the ideal solution to maximize your income and avoid these extra costs.

In this blog, we explain how opening a U.S. bank account allows you to receive direct payments, reduce commissions, and optimize your cash flow as a freelancer.

1. The Challenge of Receiving International Payments as a Freelancer

If you work on platforms like Upwork or Fiverr, or directly with international clients, you’ve likely experienced the high conversion fees and transfer charges. Depending on the payment platform or method used, freelancers can lose between 5% and 10% of their earnings due to commissions and taxes, especially when payments are received in foreign currencies.

Common commissions affecting freelancers:

• Currency conversion fees: When receiving payments in U.S. dollars or other major currencies, many platforms apply a higher-than-usual conversion rate, reducing the actual amount you receive.
• Withdrawal fees: Platforms like PayPal or Payoneer charge withdrawal fees to transfer funds to your local bank account, typically ranging from 2% to 5%.
• Local taxes: In addition to platform fees, some countries impose additional taxes on received payments, further reducing your earnings.

2. Benefits of Opening a U.S. Bank Account for Freelancers

Opening a U.S. bank account provides a direct solution to many of these problems. Having a U.S. bank account allows you to receive payments from international clients or freelance platforms directly in U.S. dollars, avoiding conversion costs and additional fees.

Key benefits of opening a U.S. bank account:

1. Direct payments in U.S. dollars: By receiving payments directly in U.S. dollars, you avoid unfair conversion rates and intermediary costs. You can withdraw your money or transfer it to local accounts when exchange rates are more favorable.
2. Reduction in commissions: A U.S. bank account allows you to connect your account with platforms like Upwork, Fiverr, Deel, and others, avoiding fees for international withdrawals or currency conversion.
3. Better income management: You can manage your finances in U.S. dollars, which simplifies financial planning if you work with international clients or charge in dollars.
4. Credibility and access to services: Having a U.S. bank account not only facilitates payments but also grants access to international financial services like credit, investment tools, and can enhance your credibility with global clients.

Freelance platforms compatible with U.S. bank accounts:
Many of the most popular freelance platforms allow you to link a U.S. bank account, including:

• Upwork: Offers direct transfer options to U.S. bank accounts without charging additional withdrawal fees.
• Fiverr: With a U.S. bank account, you can withdraw your earnings without paying high currency conversion fees.
• Deel: This payment platform makes it easy for freelancers to receive money directly into U.S. bank accounts, avoiding unnecessary fees and offering faster payments.

3. How to Open a U.S. Bank Account as an International Freelancer

Opening a U.S. bank account as a non-resident freelancer is more accessible than it seems. Today, many platforms and digital banks allow you to do so remotely, without the need to be physically present in the country.

Options for opening a U.S. bank account:

1. Mercury: A popular option among freelancers and startups, Mercury allows you to open commercial bank accounts from anywhere in the world. There are no hidden fees or minimum balance requirements, making it ideal for international freelancers.
2. Wise (formerly TransferWise): Although not a bank per se, Wise offers U.S. dollar accounts that allow you to receive payments as if you had a U.S. bank account. It allows you to convert and withdraw funds to your local account when needed, with fair conversion rates and low fees.
3. Payoneer: This platform offers accounts in multiple currencies, including U.S. dollars. With a Payoneer account, you can receive payments from platforms like Upwork and Fiverr directly in dollars and then transfer them to your local account.
4. Brex: Another alternative for opening a U.S. account without being a resident. Brex is a digital banking platform designed for freelancers, entrepreneurs, and international businesses. It offers commercial accounts with no maintenance fees.

4. Cost Comparison: Receiving Payments in a Local Account vs. U.S. Bank Account

To illustrate the advantages of opening a U.S. bank account, here’s a cost comparison based on receiving $1,000 USD as a freelancer through platforms like Upwork or Fiverr.

As seen, receiving payments directly into a U.S. bank account allows you to retain more of your earnings by avoiding high currency conversion and withdrawal fees charged by traditional platforms.

5. Why Maximizing Your Earnings as a Freelancer is Important

When you work as a freelancer, every dollar counts. Freelance platforms and traditional payment methods can eat away at a significant portion of your income. Opening a U.S. bank account is a simple strategy that can make the difference between keeping more of your money or losing it to unnecessary fees.

By optimizing how you receive payments, you can:

• Reinvest in your business: Saving on fees allows you to invest in new tools, advertising, or training that helps you grow as a professional.
• Improve your cash flow: With fewer fees and conversion costs, your cash flow improves, allowing you to better manage your personal and professional finances.

Conclusion

Opening a U.S. bank account is a simple and effective solution to avoid losing commissions as a freelancer. By receiving payments directly in U.S. dollars and avoiding intermediaries, you can maximize your earnings and have better control over your finances. Additionally, it gives you access to more financial tools and enhances your credibility on an international level.

If you’re ready to open a U.S. bank account, we can help manage the entire process and offer personalized accounting advice to optimize your finances, manage your income correctly, and avoid unnecessary commissions, keeping more of your earnings in your pocket.