How US Wholesalers Get Paid by International Buyers

Selling to buyers in Mexico, Brazil, Colombia, Canada or Europe can open up a lot of volume for a US wholesaler or distributor. It also adds a problem domestic sales don't have: getting paid. International payments can be slow, expensive for the buyer, hard to trace and, for some buyers, hard to make in dollars at all.

The method you offer affects more than your fees. It decides how long you wait for cash, how much risk you carry, and whether some buyers can place an order at all. This guide covers the common ways US wholesalers collect from overseas buyers, the trade-offs of each, and how to set things up so payments arrive as dollars you can use.

Start with the terms, then the method

Before choosing how a buyer pays, decide when they pay. International sales usually run on one of these structures:

• Payment in advance. The buyer pays before you ship. This is the safest for you and the hardest sell for the buyer, who carries the risk.
• Deposit and balance. The buyer pays part up front and the rest before shipment or against shipping documents.
• Letter of credit. The buyer's bank commits to pay you once you present documents that match the agreed terms.
• Open account. You ship first and the buyer pays later, for example 30 or 60 days after invoice. This is the easiest for the buyer and the riskiest for you.

New buyers usually start closer to payment in advance. Terms loosen as trust builds. Whatever the terms, the method you accept decides how long the money takes to arrive and how much of it you actually receive.

The main ways to collect from overseas buyers

International wire in US dollars

The traditional route. The buyer's bank sends US dollars to your US account, usually over the SWIFT network.

What to know:

• The buyer often has to convert first. If the buyer holds pesos, reais or euros, their bank converts to dollars before sending. The exchange rate and fees their bank charges are part of what the order costs them.
• Fees come out along the way. Sending, intermediary and receiving banks can each take a fee, so the amount that arrives may be less than the invoice. Agree in advance who covers fees.
• Timing varies. International wires can take from same day to several business days.
• Tracing is hard. If a wire is delayed, finding out where it is can take days.

Local currency payments

Instead of asking the buyer to buy dollars and send an international wire, you let them pay in their own currency, through payment methods they already use at home. Examples include Pix in Brazil and SPEI in Mexico. The payment is converted and settled to you in dollars.

What to know:

• It's easier for the buyer. They pay the way they'd pay a local supplier, which can remove the main reason an order stalls.
• The conversion still happens. Someone converts the currency. Know the rate and how it's quoted.
• Speed can improve. Local payment systems in many countries settle quickly, and the dollar settlement on your side depends on your provider.

Card payments

Some wholesalers take cards from international buyers through a payment processor. Cards are familiar and quick for smaller orders.

What to know:

• Processing fees are higher on cross-border cards. On wholesale margins, a percentage fee on a large order can be significant.
• Chargebacks are a risk. A buyer can dispute a card payment after you've shipped.
• Limits. The buyer's card limit may not cover a full wholesale order.

Stablecoin payments

Some international buyers, especially in markets where getting dollars through the banking system is slow or expensive, prefer to pay in a dollar-pegged stablecoin. If your provider accepts it and settles to US dollars, you receive dollars in your account without holding digital currency yourself.

What to know:

• Accept it through a provider, not a personal wallet. An established payment provider screens the payment and handles the conversion and settlement for you.
• Tell your provider in advance. If you expect stablecoin payments, say so when you open the account so it can be reviewed up front.
• Record every payment like any other sale. Invoices, buyer details and settlement records should look the same as for a wire.

Letter of credit

A letter of credit suits large orders or new relationships where neither side wants to take the full risk. Your buyer's bank commits to pay once you present documents that match the terms, such as a commercial invoice and bill of lading.

What to know:

• Documents must match exactly. Small discrepancies can delay payment.
• It costs more and takes longer to set up than a wire, with bank fees on both sides.
• It fits big, infrequent deals better than regular repeat orders.

Protecting yourself on international sales

• Verify the buyer. Confirm the company exists, who runs it and where it operates before you extend any terms.
• Make sure payment comes from the buyer. Payments from unrelated third parties are a common sign of fraud and can create compliance problems for you. The payer should match the company on your invoice.
• Check sanctions and restricted parties. Your payment provider screens payments, but you should also know who you're selling to and where the goods are going.
• Watch for overpayment scams. A buyer who "accidentally" overpays and asks for a refund of the difference to another account is a classic fraud pattern.
• Put terms in writing. Price, currency, delivery terms, payment terms and who pays bank fees should all be on the pro forma invoice or contract.

Getting from payment to usable dollars

For a wholesaler, the point of being paid is to fund the next purchase. The time between "the buyer paid" and "the dollars are in my account and I can spend them" matters as much as the fee.

Ask any provider:

1. How long until I have US dollars? Ask when it settles to your account, which can be later than when the buyer sends it.
2. What rate is used, and when is it set? Same-day conversion avoids exchange rate moves while you wait.
3. Who covers fees, and can the buyer see them? Surprise deductions sour buyer relationships.
4. Can I hold the dollars or send them on? You'll want to pay suppliers, freight and payroll from the same balance.
5. Do I need a new entity or account? Some setups require a local company in the buyer's country. Others don't.

Where Shield fits

Shield builds banking and payments for importers, exporters and wholesalers. For a US business selling abroad, the relevant pieces are:

Let buyers pay in their own currency. With Shield foreign exchange, your customers can pay in BRL, COP, MXN, CAD, EUR, GBP and more, using the payment methods they already use. You receive US dollars, held in your Shield balance or sent to your bank. No US entity required. If you are a US business with customers in Brazil, they can pay with Pix, and Shield settles US dollars to your US business account.

Accept stablecoins, settle in dollars. Buyers who prefer to pay in stablecoins can send them through Shield's stablecoin payments, and you receive US dollars.

A US account in your company's name. A Shield account gives your company US account and routing numbers, so buyers can send USD wires or ACH from any US bank. You can pay US suppliers by wire from the same balance and set up scheduled transfers to an external US bank. Shield also supports payments to suppliers in China and Hong Kong. Every inbound and outbound payment is screened against sanctions and risk lists before it processes. Accounts are opened after a compliance review. Owners can live outside the US, with a US company.

Credit for the buying side. Once international sales are flowing, the Shield business credit card helps you buy the next round of inventory before the last round's payments land. It's underwritten on company revenue, cash flow, reserves and operating history, with no personal credit check and no personal guarantee. Owners can live outside the US, with a US company.

A simple setup for most wholesalers selling abroad

1. New buyers: payment in advance or a deposit, paid in their local currency or by USD wire.
2. Large first orders: consider a letter of credit.
3. Repeat buyers: local currency, USD wire or stablecoins, with terms that loosen as trust builds.
4. Your side: one US balance that receives everything in dollars and pays your suppliers, freight and team.

FAQ

What's the cheapest way to receive international payments as a US business? It depends on the buyer's country and currency. Letting buyers pay in local currency often costs them less than buying dollars and sending an international wire, and it can arrive faster. Compare the full cost, including the exchange rate, not just the transfer fee.

Can international buyers pay me in their own currency? Yes, with the right provider. Shield lets customers pay in BRL, COP, MXN, CAD, EUR, GBP and more, and settles to you in US dollars.

How long does an international wire take to arrive? Anywhere from same day to several business days, depending on the banks involved. Local currency payments and stablecoin settlement through a provider are often faster.

Do I need a company in my buyer's country? Not usually. Collecting in local currency through Shield doesn't require a company in your buyer's country.

Is it safe to accept stablecoin payments? Accept them through an established payment provider that screens payments and settles to dollars, rather than a personal wallet. Tell your provider up front that you expect them.

What's the safest payment term for a new international buyer? Payment in advance, or a deposit with the balance before shipment. A letter of credit is an option for large orders where the buyer won't pay in advance.

Can I use the same account to pay my suppliers? Yes. With a Shield account you can receive payments and pay US suppliers by wire from the same USD balance. Shield also supports payments to suppliers in China and Hong Kong.

Next step

Selling to buyers abroad? See how foreign exchange lets them pay in their own currency while you receive US dollars.