Freelance has become the most common trend taken by some young people to make money as it is not linked to work in a particular company or with a particular employer. You may ask yourself, How Freelancers do their money transactions? So we will discuss here the most common payment methods for freelancers in 2019.
Worldwide, more than half of freelancers are under 30 years old. And only 6% are over 50. With the younger generations taking to freelancing by the millions, it’s only plausible to think this will become the way of the future.
Payment Methods For freelancer
ACH Freelance Payments
One of the Payment Methods For freelancers It is a network that coordinates electronic payments and automated money transfers. ACH is a way to move money between banks without using paper checks, wire transfers, credit card networks, or cash. It stands for Automated Clearing House and is a method of payment where the money is transferred electronically from one bank account to another in batches.
- Greater convenience.
- Increased security.
- Fewer chargebacks.
- Smaller carbon footprint.
- limited to the United States only.
- they may take up to two to three business days to complete.
Transferwise Payment Options
It uses a smart new approach to allow people to send and receive money safely from abroad without the high fees added by most high-street banks. TransferWise is an online money transfer service, which lets you transfer money up to eight times more cheaply than with a bank. The system is beautifully simple.
- completely safe.
- totally free.
- you can check it on Google and any currency exchange app.
- Very fast for card transfers.
- Rates guaranteed (24/48 hrs).
- It takes around two days.
- Online focus, limits telephone contact to troubleshooting.
- Larger transfers can be limited.
PayPal Online Payments
It is an e-commerce company that facilitates payments between parties through online funds transfers. PayPal allows customers to establish an account on its website, which is connected to a user’s credit card or checking account. Users pay for transactions through credit/debit cards, bank accounts, PayPal accounts or financing.
- It’s easy to set up and use.
- Your clients/customers may already be familiar with PayPal.
- You don’t need a merchant account.
- Your clients/customers don’t need a PayPal account to pay you.
- You can create and send invoices right through your account.
- PayPal’s fees are less than many merchant accounts.
- You can set up recurring payments.
- You can integrate PayPal with several shopping cart systems.
- PayPal’s Seller Protection policies do not cover digital goods.
- There are hefty fees for chargebacks.
- It can take four business days for withdrawn funds to clear in your bank account.
- There are several people who refuse to use PayPal, which may result in lost business.
- It can be difficult to contact PayPal’s customer service department.
Payoneer Digital Payments
It is a financial services company that provides online money transfer and digital payment services and working capital solutions. Payoneer is safe to use after all it’s authorized and regulated by different international watchdogs.
- Easy to use.
- Global payment services.
- Supported by popular companies.
- Direct bank withdrawal.
- International Prepaid Card.
- Hefty card renewal fee.
- Not 24/7 customer support.
In-Person Cash Payments
It used to record transactions that are paid in the form of cash. Cash payment can include paying a creditor or commission fee, making the interest payment, or withdrawing cash. If any payment is made using cash, it is recorded in the cash payments journal.
- No Extra Expenses.
- Reality Check.
- Better Budgeting.
- More Resourceful.
- Avoidance of Debt.
- Danger Zone.
- Transaction Limitations.
- No Reservations.
- Lost Money.
- No Rewards.
- Lack of Credit.
Paper Check Payments
It is a form of payment that draws money directly from a checking account. A check is safer than paying cash because the canceled check becomes a permanent record of the payment.
- Privacy and control.
- saving money.
- Easy to lose.
- time-consuming and costly.
It is a service that allows you to pay bills with credit cards, even where cards are not accepted by the lender, creditor, or vendor. This includes regular bills, such as your rent/mortgage payment and utilities, as well as other expenses like tuition, and even your income taxes.
- Eliminates the need for carrying huge cash.
- Risk of Loss or Theft minimized.
- Credit Facility.
- You can use cards for online payments, fund transfers, and various other transactions.
- Cards/plastic money is not a complete replacement for cash.
- The use of cards can also be risky in some cases.