How payments and payouts work
You’re always charged in USD. Each contractor is paid in their own currency, so when that differs from USD the amount is converted. On top of the contractor’s amount you pay a processing fee (by payment method) plus, for cross-currency payouts, an FX spread and an FX buffer. The contractor receives their full agreed amount — you cover the fees.
Flamingo charges you in one currency and pays each contractor in theirs. Understanding that split explains how conversion and fees work.
The big picture
- You’re charged in USD. Every payment you make is collected in US dollars, regardless of a contract’s currency.
- Contractors are paid in their currency. Each contractor is paid in the currency tied to their contract/bank account.
- So when a contract isn’t in USD, the money is converted — the USD you’re charged is converted to the contractor’s payout currency.
The contractor always receives their full agreed amount. Fees are added on top and paid by you, not deducted from the contractor.
What you’re charged
Your total for a payment is made up of:
- The contractor’s amount — what they’re owed, in their currency.
- A processing fee — based on how you pay (bank/ACH vs card). See Payment processing fees (card vs ACH).
- For cross-currency payouts only, two currency charges:
- FX spread — a small markup over the mid-market exchange rate.
- FX buffer — a reserve that protects against the rate moving between charge and payout.
See How currency conversion and the FX buffer work for exactly how the rate, spread, and buffer are applied.
About “cross-border” payouts
When a contractor is paid in a different currency from the USD you’re charged, the payout is cross-currency (sometimes shown as “cross-border”). This isn’t a separate fee — the cost of paying across currencies is the FX spread and FX buffer above. If a contract is already in USD, there’s no conversion and none of those FX charges apply.
The order of events
- The contractor’s amount is determined in their currency.
- It’s converted to USD for your charge, with the FX spread and buffer added (when cross-currency).
- The processing fee for your payment method is added.
- You’re charged the total in USD, and once it settles the payout is sent.
- The contractor receives the payout in their currency.
See the breakdown before you pay
Before you confirm a payment, the breakdown shows the contractor payout, processing fee, and any FX spread and buffer that make up your total — so there are no surprises. For how the charge is then funded and paid out, see How invoice funding works and how long it takes.
Note: Two things to remember: you’re always charged in USD, and the contractor is paid in their currency. When those differ, the only extra costs are the FX spread and FX buffer — there’s no separate cross-border fee — and the contractor still gets their full amount.
Last updated: Jun 2026