PAYMENT OPTIONS FOR FREELANCERS
Running a freelance business is not just about producing great work, but it also requires establishing payment process and systems that allow you to professionally manage your financial success.
Below are some of the best ways freelancers can receive payments from their clients scattered around the world.
- CHEQUE : Receiving payment by check is an old method. Wherein you receive a check from a client and deposit it in your account. The bad thing about this method is, you have to wait for the check to arrive in the mail and then wait for it to be credited into your account.
- PAYPAL : Paypal is considered one of the fastest, easiest and most popular options to receive online payments. Here the payments can be faster and the only thing is that the client has to do a small payment forwarding procedure. Paypal charges a nominal fee for every transaction and they have very strict policies. So it is a good idea to avoid any fraudulent or suspicious transactions.
- ESCROW : This is the most secure method for freelancers to process payments online. A freelancer would start his work only after the client deposits the money into an escrow account (operated by trusted third party) for a certain fee. The money gets released once the job is completed. This method is recommended while working on big assignment with an unknown client.
- ELECTRONIC FUND TRANSFER : In this option funds can be sent from one bank account to another without interference of a third party. Here, you need to provide your bank account information to your client.
- CREDIT CARD: Many clients want the ability to pay for work by credit card. Which means that you need to have the ability to accept them. You must have a merchant account for this purpose.The merchants charge a small fee for the transaction.
- WESTERN UNION : Western Union money transfers are quick and convenient, but the fees are marginally higher. It is having more than 3,00,000 outlets world wide. So one can receive payment from any where to any where around the world. To send funds, your client has to go to any nearby western union branch and deposit the payment,which you can collect from the nearest western union outlet in your city.
As far as the payments are concerned the main objective is to be able to accept payment in a variety of ways, no matter which country your client lives in. Note that not all pay systems will accept funds from all countries, so be sure to find their information out and have alternatives for clients in those countries in place.