Which payment method is best for a freelancer?

Posted on 26 Jan 2022 15:51 in Small Business Hacks
by Zainab Sohangpurwala

Getting safe and timely payment is the priority of all freelancers. Read along to know all about the different methods of receiving payments, their pros and cons!

Unlike employees who automatically get paid at the end of the month, many freelancers have never met their clients in person. It is vital to make sure that they build a strong relationship with them and ensure that they get paid on time.

 

Before agreeing to a gig, freelancers should discuss the terms and conditions, amount, payment date, and mode of payment. If you clear all these things initially and later on if the client deviates from them, you can clearly show that they agreed on it.

 

The best way to negotiate all details is via text or email. Even though discussing it via call is convenient it is no solid evidence of your agreement. It gets documented if you communicate via text, then you and your client cannot deviate from it.

 

Different ways of accepting your payments from clients

 

Cash
You can only receive cash when you and the client meet in person. Accept cash payments when no other options are available. Even then, keep different electronic modes of payment available.

 

Bank transfer
Previously, bank transfers were the most commonly utilized electronic mode of transmission, but many alternative faster and simpler money transfer solutions have recently become available. Companies, however, prefer bank transfers for significant sums of money.

 

Bank transfers are safe and efficient. You can share your bank details with the client, and they will transfer money from their bank to yours in an instant. But sometimes there may be a delay in the payment during banks holidays.

 

UPI transfer
UPI, or Unified Payment Interface, is another payment option the bank offers. UPI is India-specific and has recently become the most popular method for small transactions. It is risk-free and simple. All you have to do is submit your UPI ID to your client.

 

Mobile wallets
Mobile wallets are a new method of payment. Here money is transferred from one mobile wallet to another. These wallets are linked to your mobile number. If you want to add money, you can do it via your bank or deposit cash.

 

The issue with these wallets is that you can only pay people who have these wallets, or you can scan and pay. Accepting money in the mobile wallet and transferring it to your bank is another alternative. However, it is time-consuming and may require transfer fees.

 

Google Pay
Google Pay, often known as GPay, is one of the most common methods of transferring money. This is due to GPay's role as a bank intermediary. Here, one can make real-time bank-to-bank payments while providing minimal information.

 

For example, if you and your client are both using GPay and he has to pay you $100, all he needs to do is input your mobile number, click the Pay Button, enter the amount, authenticate, and the payment is completed. 

The funds are moved from his bank to yours.

 

GPay also gives a lot of rewards and cashback to the customers who regularly use it. Customers who buy from small businesses find this method the most convenient.

 

Online Payment Gateways
A third-party payment provider is a service that allows merchants to accept online payments without the need for a merchant account. 

 

These firms have their own merchant account through which they handle payments for internet businesses.

 

If you have international clients, it's good to consider signing up for such service providers to accept payment by Credit/Debit Cards and in multiple currencies. Setup is usually free, but you may need to pay some fee per transaction. 

 

Stripe, Square, PayPal, and more well-known options are available.

 

These are some of the payment methods freelancers can use to get paid. 

 

People sometimes take freelancers for granted and fail to pay them even when they provide timely services. As a freelancer, you must remain vigilant and informed of the situation. However, in order to get payments on time, invoices must be issued accurately and on time.

 

Do you have invoicing software? 
Are you still using MS Excel to generate sloppy invoices? 

 

It's time to give a try to Shimbi Invoice - the simplest Invoicing Software specially designed for freelancers and small businesses.

      



About the author

Zainab Sohangpurwala     
Passionate about helping companies grow their business via content marketing.


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