Vendors on Liquid Can Get Paid in Local Currencies
Introducing built-in foreign exchange in Liquid, which allows Vendors to get paid in foreign currencies.
At Liquid, our goal is to make it simple for organizations to contract and pay their freelancers, contractors, consultants, and vendors. To that end, we’ve been quietly rolling out built-in FX for a select group of foreign currencies. And we are thrilled to now make that available to all users, allowing Vendors to now get paid in their local currencies!
What is FX?
We power the liquid workforce.
FX or Forex is foreign exchange. Foreign exchange rates for converting currencies change constantly. When you search on Google for the exchange rate between two currencies, what you see is the mid-market rate or spot rate. This is also referred to as the interbank rate since that is the rate banks use to exchange currencies.
Most banks will charge consumers a 4-8% mark-up on the exchange rate to allow them to make some money on each conversion.
How competitive are Liquid’s FX rates?
Liquid’s FX rates are highly competitive. They fluctuate daily based on what rates we can get, but in our initial testing, we’ve generally found that the rates we are offering are comparable to the mid-market rate.
How can Liquid offer such competitive FX rates?
We’ve partnered with one of the nation’s oldest and most respected banks to offer highly competitive FX rates.
How does this work in Liquid?
In Liquid, Clients always pay in USD (via ACH or credit card), but Vendors will be able to select a local currency for their pay out which completes via wire transfer. We have started with a select number of countries and local currencies to pay out in, but we anticipate paying out in any local currencies in 175+ countries by the end of the year.
How do I turn this on in my account?
If you are a Client user, there is nothing you need to do to turn this feature on in your account.
If you are a Vendor, you can go to the Getting Paid section of Settings from the left navigation bar. Under the International Payments section of the Getting Paid page, you can set your preference for your payout currency. If you can receive payments in your local currency, it will say so in this section.
Once you change your preferred payout currency to your local currency, assuming you have a valid and verified bank account set up in Liquid, then your account is set up to receive payments in your local currency.
Once you change your preferred payout currency to your local currency, you will need to go up to the card for your existing bank account. Press the three dots in the upper right corner and select Replace Account. Enter your bank account details — even if your bank account will remain the same, you must complete this step or you will continue to receive payments in USD.
If you need to change your bank account, press the three dots in the upper right corner and select Replace Account. Enter your bank account details and submit your bank account information. Note that international bank account verification takes 1 to 2 business days; you may be asked to complete our identity verification process before your bank account is verified.
Why would I want to receive payouts in my local currency?
We understand many Vendor users who prefer to receive USD and hold USD in their local bank accounts. Liquid’s ability to offer FX rates in-house will not affect those users.
However, there are also many Vendor users whose banks charge them an arm and a leg when receiving USD. These Vendors have an opportunity to pay lower fees and get more money in their bank account when selecting to receive payouts in their local currency.
Why would I want my Vendors to be able to receive payouts in their local currency?
For Clients, this feature allows some of your Vendors to get more money in their bank account at the end of the day, allowing you to bolster your Client-Vendor relationship.
How can I find out when local currency will be offered in my country or in my Vendor’s country?
If you are a Vendor, you can go to the Getting Paid section of Settings from the left navigation bar. Under the International Payments section of the Getting Paid page, you can see if we are currently only offering only USD payouts or also offering payouts in your local currency.
If local currency payouts are not currently available for you, you can contact us at firstname.lastname@example.org or via Chat on our site at any time.
If you have questions about when this will be available in your overseas Vendor’s country, please contact us at email@example.com or via Chat on our site at any time.
Seamless Global Payments with Liquid
Liquid supports payments to 175+ countries worldwide in USD as well as foreign currencies. This allows you to work with the world’s best freelancers, contractors, and vendors no matter where they are. Liquid makes it effortless to contract and pay your on-demand workforce.
Category: Liquid News Finance and Accounting Freelancer Tips International Payments Freelancer Management
Updated: March 10, 2021