Freelance numbers have exploded since 2019, with the total number in the USA hitting an estimated 70.4 million in 2022, according to Demand Sage. These numbers are expected to continue rising, as more people prioritize finding a healthy work-life balance. If you’re considering jumping into the freelance world, you’ll need to make sure you get paid properly. There are countless payment methods out there, so explore the options and choose one that works for you.
Digital Payment Apps
Digital payment apps allow money to be transferred quickly and at a lower price than traditional banks. The most well-known digital payment app is PayPal, but the transfer fees can be considerably high, especially when it comes to international payments. Fortunately, there are plenty of alternatives including the Ria Money Transfer app, which is easy to use and cost-effective.
If you’d prefer to keep your payments within the confines of the traditional banking system, there are always electronic fund transfers (EFTs). These payments are transferred directly from one bank to another without any third-party support. In some cases, this type of payment is instant, but it can take up to four business days. As well as the transfer time, the cost of an EFT can be fairly high, and you may have to pick up the fees.
Software like FreshBooks and QuickBooks helps freelancers keep track of their finances, which makes filing end-of-year taxes a breeze. As well as tracking payments, these tools can generate invoices and receive payments internally, which are then linked to your financial records. When a client fails to pay, these tools will send out reminders, which means you can just focus on work. If you aren’t using an accounting tool already, we recommend jumping on board because it will make your life as a freelancer much easier.
The classics never truly die, and the check is an easy way to get paid by a client. These days, once a check arrives, it can be deposited into a bank digitally, which will save you a trip to the bank. The appeal of using a check is that there are zero fees. However, you will have to wait for a check to clear, which may not suit some freelancers.
Believe it or not, you may receive payments by credit card, which will suit some of your clients. Typically, you will need to process transactions through a digital system like PayPal. Alternatively, you can open a merchant account or invest in your own hardware for accepting credit cards, which will be more expensive. That being said, many credit card processing tools work alongside smartphones, which will save you from having to buy bulky hardware.
To get paid as a freelancer, you need to have a preferred payment method, but you will need to be flexible when working with some clients. Each payment method has clear pros and cons, so you will need to pair these with your personal requirements.