What Is The Best Payment Method For Freelancers? (9 Options)

You have found your client after a few interviews, and done the work, and it is now time to get paid for your hard work. So, what is the best way to receive payments from your client? You need a secure, affordable, and easy freelance payment method to avoid hurdles when it’s time to get your dues. But how you get paid will depend on your client’s processes and what freelance platform you are using.

If you are working with a direct client you need to discuss before you start the job to know what they use. If you are using a freelance platform like Upwork, they allow several payment methods depending on your country or preference.

If you have just begun your freelancing journey you need to know the best payment method for freelancers and understand their features, benefits, and cons so that you choose the best for you. Luckily there are numerous ways you can get paid that are convenient and secure.

This article looks at the best freelance payment methods you can consider and shares details on their fees, features, pros, and cons so that you can decide the best one for you.

4 Factors to Consider When Choosing The Best Payment Method for Freelancers

Here are some of the things to look out for when choosing the best payment method for you.

1. Fees

It makes no sense to lose so much money by paying fees when you receive your pay. Some freelance payment methods may be more costly than others.

Bank transfers are usually cheaper because it is a direct from your client’s account to yours but they may be limited if you are not in the same location. On the other hand, PayPal has higher fees than other methods as you will be charged 2.9 to 4.4% to receive money through PayPal depending on your location.

2. Ease of use

You need to choose a convenient payment method for both you and your client. It should be easy to load funds and send payment in little time.

PayPal is one of the best payment method for freelancers that are quick and easy to use. It is also highly likely that your client has a PayPal account as most people who transact online do. PayPal also allows clients to pay with an email address which makes it easy to use.

3. Customer support

You only know how important customer support is when you can’t access your funds in your payment portal. Ensure that the freelance payment method you choose has great customer support and can solve problems quickly and easily.

4. Secure payment

The best payment method for freelancers should be secure and doesn’t pose any issues. For example, getting paid directly to your bank account may be the easiest option but there is a high risk of identity theft and stolen cards. So, in this case, you should choose secure payment methods like PayPal and Payoneer which have end-to-end encryption and are more secure.

Also Read: Where Can I get Freelance Jobs? 9 Best Freelance Websites to Find Work

9 Best Payment Methods for Freelancers

When trying to select the best payment method you need to consider the fees, where your payments will come from, and whether you need any additional features aside from payment processing. Keep reading to learn the top freelance payment methods that you can use to receive payments from your local or international clients

1. PayPal

PayPal is one of the best payment method for freelancers that is known and accepted worldwide. It is also an acceptable payment method for most freelancer platforms such as Upwork and Fiverr.

It is free to transfer the money you receive in your PayPal to your bank account. But you will be charged (2.9 to 4.4%) to receive money in your account. You can open a free personal or business account depending on the transactions you expect to receive.

The main advantage is that you can receive your funds within 24 hours after your client sends them. The cons of using PayPal is that they have impromptu account freezing when you receive a huge amount of money immediately after opening your account which may limit you from using your funds due to account restrictions.

2. Payoneer

Payoneer is another freelance payment method available in many countries and allows you to get paid from wherever you are. It is free to set up an account but they have a vigorous identity verification that you may or may not pass.

Unlike other payment methods, you will be charged a yearly maintenance fee of $25 if you don’t transact regularly with your account. The advantage is that the transaction fees to receive payment are low. However, you will be charged about 2% when you withdraw foreign currencies.

The downside of using Payoneer is that it takes about 5 working days to get your funds after withdrawing them.

3. Wise

Wise, (Formerly Transfer Wise) is another global freelance payment method that allows you to receive payments from clients worldwide. The transaction fees are not constant and are dependent on your location and the client’s location.

The advantage is that you can receive money in your native currency as Wise does the exchange rate. The con is that the service is restricted in some countries so you may need to confirm if your country is listed before you sign up.

4. Skrill

Skrill is also a less-known freelance payment method just like Stripe but it is worth considering. You can receive payments from international clients in different currencies.

The advantage of using Skrill is that they have affordable transaction fees depending on your location. However, you may be limited to withdraw huge amounts of money. The downside is that account verification may take longer and they have limited customer service.

5. Google Pay

Google Pay is a newer payment method for freelancers introduced in 2018. It is free to receive money and is convenient. However, it has limited payment options and some clients may not want to use it.

The best part about Google Pay is that you only need your email address and phone number to receive payment from a client. Furthermore, the transactions are faster and you can receive funds within 24 hours.

The advantage is that Google Pay does not charge freelancers to receive money, unlike other payment methods. However, you may be charged to transfer money to your debit card. The downside is that some clients may not be on Google Pay as it is only available in limited countries and you need to have a smartphone to use it.

Also Read: What Online Jobs Can You Get With No Experience?

6. Escrow

If you are working with a direct client for the first time and need a secure payment method then consider using an escrow service. It helps to protect both the freelancer and the client.

The client will deposit the payment in the escrow that holds the payment until the freelancer completes the work and releases the funds. It is a win-win situation. The only downside is that the escrow payment method has high transaction fees compared to other freelance payment methods.

7. FreshBooks

If you want more than a payment method, then FreshBooks offers more than that. You can use it to create invoices and send automatic payment reminders to your clients. It is also a good tool to track your income and expenses and all accounting needs for your freelance business.

Also Read: 15 Best Freelancing Tools for Beginners to Improve Your Success Rate

8. Stripe

Stripe is a less-known payment method for freelancers because it is only available in selected countries. Nevertheless, it is an easy, convenient, and secure way to get paid for the freelancers and the client. 

However, the fees are high and it is not available in all countries.

9. Bank transfers or cheque

A bank transfer is also a viable payment method for freelancers. It is one of the easiest and quickest ways to receive payment if you live in the same location as your client.

The downside is that it may not be possible to receive money if you are not in the same country as the client. Furthermore, it is costly to send a check for international payments through post.

FAQs

• Is PayPal good for freelancers?

PayPal is one of the best payment methods for a freelancer that has been around for a long time. It uses end-to-end encryption and is trusted by most of the top freelance marketplaces to pay freelancers worldwide.

• How should freelancers get paid?

As a freelancer, you can accept payment via bank transfers, PayPal, Stripe, bank transfers, Wise or Payoneer.

• How can I get paid by US clients?

You can get paid by your US clients through PayPal, Wise, Payoneer, Skrill or bank transfers. Please note that there are varied charges depending on the type of payment method and the amount you’re being paid.

• Is PayPal or Payoneer better for freelancers?

Both PayPal and Payoneer are secure payment methods for freelancers because they’re regulated and have end-to-end encryption. However, PayPal has a longer history, unlike Payoneer which had a few cases of fraud and account limitations as reported by freelancers online.

Final Thoughts

Before you choose the best payment method you need to consider the fees, ease of use, security, and quality of customer support. PayPal is the best overall freelance payment for freelancers because it is widely accepted by clients and freelance platforms. However, the transcription fees may be high.

You can also consider Payoneer or Wise as they are the best for international clients. If you want to consider a free payment method then use Google Pay as it is easy to get paid on your phone. Before you start working for your clients ensure that you agree to the payment terms and sign a binding contract to avoid losing your hard-earned cash.

Which of the 9 best payment methods for freelancers have you used? Share your thoughts below.

Read Next:

• Top 10 Interview Tips For Freelancers
• 13 Best AI Tools for Freelancers to Make Money Online In 2024
• 12 Best Freelancing Tools for Productivity Every Freelancer Should Use
• Can You Freelance With No Experience? How to Become a Freelancer in 30 Days Or Less