Late payments, missing invoices, and awkward client conversations can be a source of enormous frustration. That's why finding safe and best payment options for freelancers to use easily is key.
With the rise of remote jobs and online stores, payment has transformed how we get it. The days of time-consuming checks and wire transfers are behind us.
These days, freelancers have a diverse range of payment options at hand. But which are the safest, most efficient, and most cost-effective?
Here, we will analyze the top & best payment methods for freelancers, evaluating their pros and cons, fees, and users' reviews.
Whether you are an established freelancer or just starting, this guide will help you know the world of payment methods for freelancers and how to determine the optimum payment vehicle while you freelance.
Read Also - 13 Best Freelance Websites to Hire Top Freelancers in Nigeria (2024)
Top 5 Payment Options For Freelancers: How to Get Paid
For seamless transactions with clients around the world, freelancers require dependable and effective payment options. A payment option that offers smooth transactions, reduced fees, and quicker payouts can make all the difference.
We have arranged the top payment methods for freelancers according to transaction type and usability to assist you in navigating your alternatives.
However, running a profitable freelancing business involves more than just handling payments. Skill development and ongoing education are equally important.
Learn is a platform that helps freelancers learn new skills, stay competitive, and broaden their knowledge through expert-led classes.
Learn offers the tools to support your growth and success, whether your goals are to polish your marketing tactics, improve technical proficiency, or better financial management.
We've curated the best served payment options for freelancers sorted by transaction type and usability. Here are five best payment options for freelancers:
1. Checks
One of the most traditional methods of paying freelancers is through a check. Checks are types of payment mediums that allow one to pay funds from his bank account to someone else or an organization.
Checks are generally printed on certain paper and bear information such as date, signature and name of the payer, and the recipient's name.
Pros
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Simplicity: Easy to mail and write.
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Universality: Widely accepted throughout the world.
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Record-keeping: Offers a physical proof of payment.
Cons
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Processing time: Takes days to settle.
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Security: Can easily be lost, stolen, or altered fraudulently.
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Cost: Has additional expenses (printing, mailing, cashing).
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Inconveniences: Is inconvenient to both clients and freelancers.
You Can Also Check Out: 10 Best Payment Platforms for Freelancers in Nigeria to Ease Your Life
2. Electronic Funds Transfer (EFT)
Electronic Funds Transfer (EFT) is a method of electronically transferring funds from one bank account to another. To utilize EFT, the sender must provide the recipient's banking information.
This includes the routing number and the account number. The client then makes the transfer of funds. The money is transferred from the sender's account to the receiver's account, typically within a few working days.
Pros
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Security: Secure and safe way to transfer funds.
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Speed: Quick processing guarantees timely payments.
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Record-keeping: Transactions are maintained in bank records.
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Cost-effectiveness: In most instances, cheaper than other payment options.
Cons
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Technical knowledge: Basic understanding of EFT needed.
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Bank account requirements: Sender and recipient must both have a bank account.
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Limited availability: Not available everywhere or for all bank accounts.
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Processing time: Funds are not available at once.
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Technical issues: System glitches can impact EFT payments.
Read Also - 10 Reasons Why Companies Hire Freelancers Today
3. Credit Cards
To make an online credit card payment, the cardholder must enter their credit card information into the payment form on the website or app.
Then the payment processor processes the payment, verifies the card information, and transfers the funds from the cardholder’s account to the recipient’s account.
Pros
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Convenience_: Fast and easy payment method.
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Widely accepted: Familiar payment method for many clients.
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Rewards and benefits: Offers rewards, such as cash back or points.
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Record-keeping: Transactions recorded on cardholder's statement.
Cons
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Processing fees: Impacts freelancer's earnings.
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Security: Vulnerable to fraud or theft.
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Disputes: Complex and time-consuming to resolve.
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Interest and fees: Additional costs for clients carrying a balance.
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Limited acceptance: Not accepted by all freelancers.
4. Wire Transfer
Wire transfers are another ancient payment method, suitable for big amounts and international payments:
Wire transfer fees can be higher, and they can be utilized more efficiently for big single payments rather than small frequent payments.
The customer must trigger the wire transfer payment through their bank, providing the freelancer's bank information. The banks make the transfer, verifying the account information and sending the money.
Pros
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Speed: Wire transfer is fairly quick, especially in same-country payments.
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International Acceptance: Widely accepted means of paying abroad.
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Safety: Payment processed directly between the banks, adding an additional layer of security.
Cons
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Fees: Wire transfer costs may be higher.
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Suitability: More suitable for large payments made one-off than the smaller, regular payments.
5. Bank Transfer
A bank transfer, or an ACH (Automated Clearing House) payment, is a direct funds transfer from one bank account to another.
To make a bank transfer payment, the client must initiate the transfer through their bank, providing the freelancer's bank account information.
The banks will then execute the transfer, verifying the account information and transferring the funds.
Pros
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Low Fees: Bank transfers are generally cheaper compared to other payment options.
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Security: The ACH network is controlled and offers a secure way of receiving payments.
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Recurring Payments: Facilitates automatic bank transfers, which is convenient for receiving recurring payments.
Cons
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Processing Time: Bank transfers can take a few days to process.
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Requirements: Both parties must have a bank account to transfer money.
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Limited Support: Bank transfers may not be supported in certain countries or banks.
Also Read - 20 Highest-Paying Freelance Jobs in Nigeria
Tips to Get Paid as a Freelancer
There are numerous Freelance Websites to make daily, weekly, and monthly earnings. But you might face several issues at the time of payment. So, implement the following tips to enhance things considerably.
1. Using a Time Tracker
A time tracker helps you keep the right record of the work done. This is particularly for those who do hour-based jobs.
2. Keep the Contract Signing Constant
Having a contract signed facilitates ease of understanding between you and your client. Here, they're bound by what was signed and agreed upon.
3. Use a Simple yet Standard Payment Method
You have a high chance of being paid quickly with easy and traditional payment methods.
4. Professional Invoice Software can be a Game-Changer
An invoice extractor will reduce the hassles of sending and receiving payments. All your clients need to do is click on the link or button in their emails to access the payment options to make payments.
Read Also - 7 Steps to Becoming a Well-Paid Freelancer in Nigeria
How Does Expaat Support Freelancers in Getting Paid?
Expaat is not just a platform for freelance job searching; we are your partner for success. We understand what it's like to be a freelancer, from being paid on time to getting the best work. That's why we've integrated secure payment features into our platform. This encompasses:
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Streamlined invoicing process with tools to create and send invoices directly from the site
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Multiple payment methods to increase the likelihood of getting paid on time
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Currency exchange for cross-border payments
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Secure handling of funds, protection of both clients and freelancers
Expaat also provides assistance and facilities, including:
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Financial management guidance and payment best practices in our Learn platform
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Customer service for payment inquiries
Taking care of the nitty-gritty of payments and support, Expaat enables freelancers to focus on their work, rather than chasing payments.
Frequently Asked Questions
How do I choose a payment method as a freelancer?
When choosing a payment method, consider such aspects as the transaction fee cost, payment processing time, security, and convenience. You may also consider your clients' payment preferences.
How long does online payment processing take?
The time taken to receive payment through online payment modes varies from one mode to another. PayPal and Payoneer, for example, typically take 2-5 business days.
Can I accept more than one payment mode as a freelancer?
Yes, you can take more than one payment method as a freelancer. Actually, taking multiple payment methods makes it convenient for clients to pay you and can earn you payments faster.
How do I get timely payments from my clients if I am a freelancer?
To get payments in due time from customers, attempt to set prompt payment terms, make payments promptly, and remind customers every now and then. There are also internet payment systems that can provide automatic payment reminders and invoicing.
Conclusion
On-time payment is the most critical for freelancers. Given the many payment methods, it is amazing how one should select the best of them.
We at Expaat simplify getting paid for freelancers. On our platform, we offer different payment options for freelancers, including PayPal, Payoneer, and bank transfers.
You can concentrate on what is important - providing good work to your clients. Join Expaat today and experience the best payment options for freelancers, tailored specifically for you.
