How To Get Paid: 6 Online Payment Tools For Freelancers
There’s one essential part of the freelance life that isn’t talked about enough, and that’s “getting paid”.
We’ve published a few articles now about how to be productive as a freelancer. We’ve talked about how to find your flow, how to get gigs, and all that fun stuff. But there’s one essential part of the freelance life that There’s one essential part of the freelance life that isn’t talked about enough, and that’s getting paid.
Obviously, this is one of the most important parts of the job, but it’s also something that many freelancers are pretty clueless about when they start out.
For example, what payment option are you using at the moment? What are the associated fees? Have you thought about alternatives? If this is something you haven’t put a whole lot of thought into yet, then here’s your chance.
Here are 6 online payment tools that are definitely worth checking out;
1. Paypal
We might as well kick things off with the most well-known payments portal out there! Paypal isn’t the cheapest option available (2.9% +30c on every transaction) but it’s often the most reliable and convenient, which most people are happy to pay a little extra for. 162 million people across the world, to be exact. Since it was set up in 1998, Paypal has expanded to service 203 markets and more than 100 currencies worldwide.
Business users can upgrade their personal account to a business account completely free of charge and this is mandatory once you go over the incoming payments threshold. Paypal easily hooks up with your bank account and visa/debit card to allow for swift money transfers and payments, regardless of where you are in the world, which is pretty important for freelancer living the digital nomad lifestyle.
Paypal is also pretty on the ball when it comes to monitoring for fraudulent transactions. This can be an inconvenience if you’re traveling and logging in from different locations (suspicious activity), but you can sort it out easily enough once you verify your identity — and it’s better to be safe than sorry!
2. Google Pay Send/Google Pay
If you’re looking for Paypal type reliability, you’ll find it with Google Pay. The previously known Google Wallet is know called Google Pay Send and is a part of Google Pay which is a redesign of Android Pay (I know it’s hard to keep up!). This service allows you to store all of your credit/debit/gift cards in a digital wallet and you can also send/receive money online using Google email. It’s free to use and you only pay for standard transfer charges. There’s 24/7 fraud monitoring and added purchase protection also.
It’s currently available in the US and the UK, however the mobile app isn’t available in the UK yet so you’ll have to use it via your desktop. I can definitely see it giving Paypal a run for its money once the service expands.
3. Skrill
Skrill is a UK based company that operates globally in pretty much the same way as Paypal, and it supports over 200 currencies in 40 countries worldwide. One of the massive perks of Skrill is that you get a prepaid Mastercard which you can use to withdraw funds from your account, so you don’t have the hassle of transferring it to your bank and waiting for payments to process.
Just make sure that you stick with a personal account if you can, because the merchant account fees are pretty high. For example, if you’re operating outside the EU, you’ll incur a receiving charge of 3.90% + €0.35. I’ve heard of Skrill automatically upgrading accounts, so if that happens you should probably jump ship.
Another downside to Skrill is that the customer support is pretty awful. I’ve been at the receiving end of it myself and it was not a fun experience. With that said, if you can stick to a personal account and never need to call customer service then you’ve a pretty sweet deal; a Paypal type service with low fees and the convenience of a mastercard attached.
4. Dwolla
Dwolla is a pretty new service and it’s only available in the US at the moment, however it offers an extremely tempting flat rate transaction fee of .25 c for transactions of $10 or more. Any transactions under $10 are free*. There are personal and business account options available, with a limit of $10,000 on business transactions and business users can avail of additional features such as mass payments.
If you’re a US freelancer with a US client who’s open to trying new things, why not suggest that they get on board with Dwolla? You’ll definitely save money if you’re switching over from Paypal. However, if you’re dealing with one or more clients outside of the US, this isn’t the right option for you — yet.
*Dwolla have now removed this pricing from their site, so it’s best to call them for a quote.
5. Payoneer
Payoneer can be used to receive payments from anywhere in the world and it’s widely used by freelancers who work with international clients. It’s available in 200 countries and over 100 currencies.
Once you’ve received a payment, you can easily transfer received funds to your bank or use the Payoneer prepaid card. Transaction fees depend on the country you’re in and where you’re withdrawing funds.
6. Venmo
Venmo is the go-to payments tool for Millennials and all you need to get set up and receive payments is a Facebook account or email address. To send money to other users, you can simply connect your bank acccount. Venmo offers a lot of perks; there are no fees to process payments between users and bank withdrawals only take one business day!
Venmo was acquired by Paypal in 2013 and this payments tool that looks like it’s going to go the distance so it’s definitely worth checking out.
What’s Your Go-To Tool?
Which payment tool do you use to manage your freelance income? Have you tried out any of the above options? Why not let us know in the comments below, or get in touch with us on Twitter at @bucketsdotco. We’d love to hear from you!
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