Are you wondering how to get paid by your clients and looking for the best freelancer payment options? You have come to the right place. As a freelancer in the United States, you need to think about how your clients will pay you. Fortunately, the there are now numerous payment alternatives available rather than having to rely only on cash or check payments. So let’s look at some of the best payment methods used by freelancers in the US to get paid.
Table of Contents:
1. Direct Bank Transfer (ACH Transfers):
As a freelancer based in USA, ACH transfers are one of the most commonly used methods for getting paid by your clients. ACH is a method that allows the client to pay you directly from their bank account to yours. This method is mostly preferred due to its ease of use as well as low costs; in most cases, there are no fees at all.
Pros:
- Convenience: Direct bank transfers allow for payments to be deposited directly into the user’s bank account which is an easy option.
- Low or No Fees: ACH transfers are offered by many banks and payment processors and they charge little to nothing thus allowing freelancers to save more money.
- Fast Processing: ACH transfers barely take time to process which means that the freelancers get their payments almost immediately.
Cons:
- Bank Dependencies: The payments could depend on the banks processing time which may cause delays or other technical issues.
- Limited International Reach: ACH transfers are opted mainly in the domestic transactions which would not favor freelancers that work with international clients.
2. PayPal:
PayPal is arguably the most utilized and popular payment method among freelancers. The clients are able to pay through their credit or debit cards or their PayPal accounts and PayPal invoicing works for the freelancers pretty well too. PayPal does charge a high processing fee for its services.
Pros:
- Wide Acceptance: Payment can be done easily as many clients use PayPal and a lot of them accept PayPal payments.
- Versatility: There are many options a client can use to pay such as PayPal, credit or debit cards, or bank accounts.
- Security: Protection for buying and selling is available through PayPal which gives extra layer of confidence on the transactions.
Cons:
- Transaction Fees: PayPal does charge fees for receiving payments, which can eat into freelancers’ earnings, especially for large transactions. Learn more about PayPal’s transaction fees here.
- Hold Policies: Sometimes PayPal does tend to hold funds which can result in some delays for the payment tor each the clients bank account.
- Dispute Resolution: Resolving disputes with clients through PayPal can be time-consuming and occasionally biased towards buyers.
3. Payment Processors (Stripe, Square, etc.):
Payment processors like Stripe and Square are also other options available for freelancers to be able to receive payment online. Along with customized invoicing they also assist with receiving payments and able to integrate with the client’s website, ecommerce or other platforms that offer customers options to pay in multiple ways.
Pros:
- Customizable Solutions: Theys offer customizable invoicing and payment solutions tailored to freelancers’ needs.
- Integration: Easy integration with websites and e-commerce platforms simplifiying payment processes for freelancers operating online.
- Diverse Payment Options: Payment processors support various payment methods, like credit/debit cards, digital wallets, and ACH transfers.
Cons:
- Transaction Fees: Similar to PayPal, payment processors levy transaction fees on each payment received. Learn more about Stripe’s payment processing fees here.
- Technical Issues: Occasionally, there may be a bug or a downtime at the payment processor platform that can affect the transaction negatively.
- Learning Curve: Most freelancers may find the setup and configuration of the payment processor account quite challenging to understand.
4. Freelance Platforms (CheckYa):
Most of the freelance platforms like CheckYa, Upwork, and Fiverr have integrated payment systems to provide a smoother transaction process between freelancers and their clients. In most cases, these platforms include several payment methods which include wire transfer, PayPal and even cryptocurrency. There is a service fee when one uses these platforms, but it is worth it as they allow contracts, invoicing and even disputes to be settled within the platform. But platforms like CheckYa gives you a way to pass on the transaction fee entirely to your clients. So let’s look in detail about CheckYa.
CheckYa:
As a freelancer, a lot may seem overwhelming to you including, speaking to clients, sending invoices and even processing payments. But this is where CheckYa comes into play. CheckYa is a solo business application made to reduce the strain on your freelance work by providing smart invoicing and payment processing simplified for you.
Core Features of CheckYa
Professional Invoicing Made Easy: Putting together and sending out invoices to clients is automatic with CheckYa. Depending on whether you are filling in an hourly, project-based, or flat rate invoice, CheckYa has a simple UI invoicing workflow tailored to make invoicing quick and straightforward for you. You can include itemized services, attach notes or terms, and even automate reminders, which will help you save time and effort.
Diverse Payment Options: One of the standout features of CheckYa is its partnership with Stripe and PayPal, two of the most trusted payment processors in the industry. This partnership enables freelancers to offer their clients a wide array of payment options, including Google Pay, Apple Pay, credit cards, debit cards, and ACH transfers. By providing multiple payment avenues, CheckYa ensures that you can accommodate your clients’ preferred payment methods, enhancing convenience and flexibility for both parties.
Fee Splitting Feature: One common pain point for freelancers is absorbing transaction fees associated with payment processing. CheckYa addresses this challenge with its innovative fee splitting feature, allowing freelancers to transfer these fees directly to their clients. By passing on transaction costs, freelancers can keep more of what they earn, maximizing their profitability.
Centralized Business Management: Apart from invoicing and payment processing, CheckYa provides a centralized dashboard through which several functions of your freelance business can be administered. You can check the status of invoices and their payments as well as analyze their revenue. Since all important business operations are integrated in CheckYa’s simple interface, you can manage business processes better and devote your time to providing quality services to customers.
Pros:
- Built-In Payment Systems: Freelance platforms come with built in payment systems that makes transaction between the freelancer and a client easy.
- Security and Escrow: These platforms tend to have escrow accounts and other means of resolving disputes to help ensure payments are safe for the freelancers.
- Streamlined Processes: These platforms help streamline tasks by enclosing contracts, invoices, and communication to one site for the freelancer.
Cons:
- Service Fees: Freelancers’ earnings are impacted because most freelance platforms charge service fees on earnings, but with CheckYa, these fees can be passed on to your customers.
- Dependency: Freelancers may give up their control or freedom over their businesses while relying solely on freelance platforms for payments.
5. Cryptocurrency:
Another popular option for freelancers who are comfortable working with digital currencies is accepting payments in cryptocurrencies like Bitcoin or Ethereum. While this option is still underused compared to conventional methods, it seems promising as it comes with low fees and doesn’t mandate currency conversion, but is also prone to certain risks, freelancers considering this option should be aware of the volatility and regulatory considerations associated with cryptocurrencies.
Pros
- Lower Transaction Fees: Cryptocurrency transactions typically have lower fees compared to traditional payment methods.
- Global Accessibility: Cryptocurrencies can be accessed and used by anyone with an internet connection.
- Security: Cryptocurrencies offer advanced security features through blockchain technology and cryptography, reducing the risk of fraud and identity theft.
- Fast Transactions: Cryptocurrency transactions can be processed quickly, allowing freelancers to receive payments in a timely manner.
Cons:
- Volatility: The value of cryptocurrencies is extremely volatile and poses a danger of depreciation in value between the time payment is received and the time when this is converted into fiat money.
- Limited Acceptance: The use of cryptocurrencies as a means of payment is still not as widespread as the use of fiat currencies, which may limit freelancers’ capability to utilize it in their day to day purchases.
- Regulatory Uncertainty: Cryptocurrency markets are dynamic and changing regulations and laws can create an environment of instability and compliance risks for freelancers.
- Security Risks: Despite blockchain being more secure than other forms of technology, freelancer’s accounts may be hacked or phishing attacks may be carried out targeting their accounts.
Conclusion:
As a freelancer in the U.S, you have all the above payment methods by which you can get paid. By understanding the pros and cons of each method and considering factors such as fees, security, and client preferences, you can select the payment options that best suit your needs and streamline your freelance payments.
