How to Pay Freelancers: Payment Methods in 2025

These apps let businesses send unlimited digital invoices for free; you only get charged a small fee when a customer pays. Started in 1998, PayPal has a market capitalization of $100 billion, and the number of users has grown from 15 million to almost 250 million. In addition to being one of the most trusted and widely used money transfer services, PayPal will accept payments from your credit or debit card, bank account, or PayPal account. This is another great option for businesses working with freelancers around the world. Azimo supports payments in over 180 countries and more than 60 currencies.

TransferWise

A payment gateway for freelancers is the network used to process payments. These networks each have various tools for freelancers, such as invoicing options and the ability to store customer billing information on the network’s server. You can also use Stripe or PayPal as your processor for the same fee. Many online payment platforms also have project management and accounting software functionality, allowing freelancers to send estimates, track project completion, and reconcile payments. One of the biggest benefits is Wise has a lot of options for foreign currency. This is an excellent solution for freelancers if they work with international clients, payments, and transactions, depending on country availability.

Use Automated Payment Solutions

• Whenever you receive payments in a different currency, and your bank account doesn’t accept it, Stripe converts the currency when the charge goes through.
• Aggregate payment processors lump everyone into the same category, so there are fixed rates for everybody.
• Using a single platform, the program enables you to control risk, monitor performance, and collect any payments made to your business.
• You just need to enter your freelancer’s email address to make your payment — and the amount is transferred to their PayPal account within the same day.
• As for the processing fee using QuickBooks Payments, you’ll pay 2.99% per invoice when the invoice is paid by credit card or a digital wallet.

With that being said, FreshBooks offers a few more invoicing features than QuickBooks Solopreneur, including the ability to send estimates and schedule late fees. FreshBooks also has project management capabilities, such as the ability to manage project budgets. Even in the freelancing world, Google has its reach, providing fast and secure online payment software to get paid for goods and services rendered.

• After integrating GoCardless with TeamUp, a cloud-based calendar app, she found that it removed the stress of payments, streamlined her invoicing process, and improved her cash flow management.
• This process alone can result in as much time spent communicating back and forth as completing the assigned task.
• Freelance platforms can be a valuable tool for finding work that suits your skills, schedule, and goals.
• You do the work, they give you a stack of cash, you deposit that cash into your bank account.
• Requesting payment from a client is as easy as emailing an invoice or texting a payment link.
• There certainly are better ways to collect payments in the modern business climate—especially for freelancers, gig-workers, and self-employers.

Recurring Payments

Venmo is how many freelancers and independent contractors (such as hair stylists) collect mobile payments from customers. However, Venmo doesn’t include invoicing or many other business features. Merchant Maverick has been researching and reviewing accounting and invoicing software since 2013.

• They also enjoy productivity and efficiency savings of $14,953 per 1000 invoices processed.
• Therefore, if you hire such a worker, you’ll have to follow a set of prescribed rules.
• Sites like Upwork, Fiverr, and others have become increasingly popular with freelancers in this new market.
• Freelancer payments are usually tax-deductible business expenses, whether you pay them through a money transfer, a credit card, or some other method.
• This eliminates unnecessary fees and delays common with traditional banks.
• Here are the most common freelancer payment methods available for small businesses.
• The Relay Visa Credit Card is issued by Thread Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc and may be used everywhere Visa cards are accepted.

Whenever you receive payments in a different currency, and your bank account doesn’t accept it, Stripe converts the currency when the charge goes through. Freelancers require electronic banking services to receive credit card payments. Accepting online payments through credit cards is an easy and simple way to get paid. However, platforms for freelancers can vary a lot in terms of how they function, the types of projects they offer, the fees they charge, https://www.bookstime.com/ and other services they provide. However, the ideal solution would depend on your business’ preferred transaction fees or the finance team’s preferences. It would also depend on whether or not you’re hiring freelancers or contractors based in the US or internationally.

The form of payment your clients use will remain exactly the same. Atomic Invest also shares a percentage of compensation received from margin interest and free cash interest earned by how to get paid as a freelancer customers with NerdWallet. NerdWallet is not a client of Atomic Invest, but our engagement with Atomic invest gives us an incentive to refer you to Atomic Invest instead of another investment adviser. This conflict of interest affects our ability to provide you with unbiased, objective information about the services of Atomic Invest. This could mean that the services of another investment adviser with whom we are not engaged could be more appropriate for you than Atomic Invest.

The faster you can find an efficient way to pay them, the more of a competitive edge your business gains. You need a system with a built-in tax engine that validates against 3,000+ rules to prevent any ID errors or cross-border issues. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you.

Payments

So carefully consider what will work best for you, depending on your budget and security needs. Aggregate payment processors like Stripe or others do not offer any choice of gateways. They also brand many of their tools with income statement their company logo and advertisements.

One option to mitigate that issue is to pay someone to build a site on one of the platforms, such as Squarespace or Wix. Once created, you can then make small changes on your own using the platform tools. Finding lower processing costs is a great way to fight inflationary pressures. Something every business and freelancer is currently dealing with. If you want to learn more about these powerful tools available to freelancers, contact ECS Payments and speak with one of our payment experts.