Payment terms, explained

A merchant of record issues the invoice, collects payment and takes on compliance duties, standing in as the seller instead of a processor or employer.

Form W-9 confirms a US taxpayer's name and ID number to a payer. See who completes one, why US clients request it, and why foreign freelancers do not.

Form W-8BEN certifies foreign status to a US payer. Learn when a client requests one, what it changes about withholding, and the onboarding friction it adds.

Form 1099-NEC reports US nonemployee compensation above the IRS threshold. See what it covers, who gets one, and why foreign contractors normally do not.

ACH moves dollars between US bank accounts, usually free or low cost for the sender, settling in one to three business days. Here is how it works.

A wire is a single bank-to-bank transfer; SWIFT is the network that carries the instruction abroad. OUR, SHA and BEN charge codes, the details to give a client, and why wires bounce.

SEPA moves euros between participating European countries like a domestic payment. See what currencies it covers and how fast transfers arrive.

USDT is a token intended to track one US dollar, issued by Tether on several blockchains. Why TRC-20 and ERC-20 are not interchangeable, and how to receive a USDT payout safely.

KYC confirms who a customer is; AML covers the wider anti-money-laundering controls. See what documents are asked for and what stays one-time.

A statement of work describes the service performed on an invoice line. See why a precise description clears accounting review faster than a vague one.

See how a contractor's invoice differs from payroll, which forms apply to each, and why misclassification risk sits with the paying company.

Escrow holds funds until agreed conditions are met. A merchant of record works differently: funds move on payment, not on a milestone release.