Best way to pay independent contractors on one-off engagements?

[thomasparra]

I am using Airwallex but it seems that I can only pay the contractors thru direct transfers by inputting their ACH/SWIFT (in US) bank account or IBAN (in EU). In other words I need to ask for their banking information and address details over email when paying them and I believe this might putoff some of them, and it is also time consuming for me as I work with dozens of suppliers every month.

Maybe my assumption that my providers won't feel comfortable sharing their ACH/IBAN is a wrong one, but in today's world of scams everywhere people are more cautious.

I was thinking to add a platform on my website or on a Google Form for the suppliers to manage and input their personal banking info directly in the system. Another alternative is to use a third party payment platform (like Payoneer) but it sounds annoying as customers need to create a Payoneer account, and their pricing structure is a bit opaque, and they also charge 3% if I withdraw the funds from Payoneer to a business bank account.

There is also Wise but no experience using them in a business context, I solely used them for personal purposes and I don't want to deal with their compliance process ever (having read countless horror stories here).

 

[Martin Everson]

thomasparra said:
Maybe my assumption that my providers won't feel comfortable sharing their ACH/IBAN is a wrong one, but in today's world of scams everywhere people are more cautious.
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I would test this assumption by asking them firstly and see what they prefer or are comfortable with. Maybe they already have a workplace they use or are happy to provide account details to settle payment.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Forester]

Martin Everson said:
I would test this assumption by asking them firstly and see what they prefer or are comfortable with. Maybe they already have a workplace they use or are happy to provide account details to settle payment.
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Exactly.

Or, @thomasparra , you can consider using crypto for payments. (Of course there are downsides.)

thomasparra said:
I was thinking to add a platform on my website or on a Google Form for the suppliers to manage and input their personal banking info directly in the system.
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Well, if I were your supplier, this would seem even more suspicious to me... 🙁 ("To what the hellish system should I enter my personal banking data???")

thomasparra said:
Another alternative is to use a third party payment platform (like Payoneer) but it sounds annoying as customers need to create a Payoneer account, and their pricing structure is a bit opaque, and they also charge 3% if I withdraw the funds from Payoneer to a business bank account.
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Yes, annoying and expensive...

thomasparra said:
There is also Wise but no experience using them in a business context, I solely used them for personal purposes and I don't want to deal with their compliance process ever (having read countless horror stories here).
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Yes. Do not do this 😉
(Seriously: I admit I do not get how Wise could help you to solve the problem, even if it were stable and predictable /what is not/...)

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...