How to pay a freelancer? The question has already crossed your mind during your search for a provider.
Whether it’s on a regular basis, or after a specific assignment, there are several ways to pay a freelancer’s service.
Make your choice among these 7 solutions !
1. Bank transfer
Bank transfer is one of the “traditional” methods to pay a freelance. It is the most common solution and remains a reliable and secure way to pay for a service.
The bank transfer offers several advantages for the client:
- It is simple and fast.
- It presents little risk in the transfer of large funds.
- It offers the possibility of paying a freelancer internationally.
- The debit is direct, so your cash flow is updated in real time.
For the independent :
- The bank transfer is instantaneous if you are domiciled in the same bank as the client. If not, it is available in 2-3 days, which is still fast.
- The transaction is secure.
- No need to transfer funds from an online service to your bank account.
Its main drawback is the fees. Some banks charge extra when the transfer is made to another bank. Moreover, the costs can soar when it comes to international payments.
Checks have always been used to settle payments. Even if they are less and less used, they are still a convenient method of payment. You can therefore easily pay a freelancer via this method.
The main advantage is that no fees are charged by the banks. Moreover, it is quite easy to cash. No need to wait for the counter to be open, most institutions offer solutions to deposit checks whenever you want.
On the other hand, this method of payment is not very secure. There is a risk of forged or bounced checks, which can affect your cash flow.
PayPal remains the most used online payment method for freelancers. Opening an account remains free and you can pay your provider simply by entering their username or email address. Moreover, it is easy to set up on a WordPress site that uses Woocommerce.
The provider receives the funds in their PayPal account and can then transfer them to their bank account. With PayPal, you can :
- Pay bills in a few clicks, via credit card or bank transfer
- Send money to several freelancers at the same time
- Send payments in different currencies
- Track your payments
The advantages for the freelancer are:
- Payment available instantly
- Ability to request payment from a customer
- Secure transaction
4. Western Union
Do you work with freelancers located abroad? Western Union offers a simple and fast payment solution for them.
While Paypal is only available in 130 countries, Western Union allows money transfers in 200 countries and territories worldwide. This means of payment is therefore an alternative to transfers that are not possible via Paypal. As for the advantages and disadvantages, they remain similar (fast and secure sending, possibility to link one’s bank account or to pay by card, immediate availability of the balance, etc.).
5. Payment portal integrated into the website
This method is used by freelancers with a website. Like an e-commerce, they integrate a payment portal directly on their professional website, to facilitate the payment.
As a customer, you fill your shopping cart with the services you want, then pay the invoice.
This payment method is particularly suitable for one-time, well-defined services such as the purchase of a text, a translation, a training course or a tool.
Also read: How to install and configure Stripe on WooCommerce?
6. Online payment via an accounting management tool
For this method to work, the freelancer must use an accounting software that includes payment options. Quickbooks, Wave or Due are some of the solutions available on the market.
If your provider offers this payment method, you should know that it is fast, secure and efficient! You receive a link and, as in an e-commerce, you choose the method of payment: credit card, Paypal, transfer… In one click, the invoice is paid.
On the freelance side, this option is ideal for :
- Automate and track client payments
- Reduce late payments
- Monitor your cash flow in real time and better manage your financial decisions
7. Direct debit
This option is recommended for paying recurring services. If you pay the same amount every month, you can automate the payment. Most banks and online solutions offer this feature.
On the customer side, direct debit allows you to :
- Pay the freelancer on time
- Save time: everything is set automatically
- Benefit from real time cash flow
- Eliminate the risk of late payment penalties
As a freelancer, the levy :
- Guarantees the payment of your services
- Prevents late payments
- Ensures a solid working capital