BluePay is pleased to bring you this valuable information from Due, a new BluePay partner specializing in helping business owners to pay and get paid faster.
Back in the day, waiting for a paper check or receiving a wire transfer or direct deposit were your only options for getting paid as a freelancer. Nowadays you can choose to get paid online in different ways, including processing credit card payments online.
Here is a guide for freelancers that explain the various ways to get paid online for faster payment and greater cash flow:
Get payments online through your website.
You can consider adding a portal, such as Authorize.net, to your own freelancer website for processing credit card payments online. These credit card processing payment gateways often come with a subscription fee and set of transaction fees, but they are usually less than the online payment portals described below.
Most options will provide a checkout experience right on your site, so you can avoid redirecting customers to a third party checkout. This builds trust with your paying customers.
Use online payment portals.
One of the main advantages of using an online payment portal like PayPal is that sign-up is free. Other benefits include the ease of use, massive adoption by companies all over the world, and the ability to receive payment in a wide range of currencies that can be settled as your local currency.
However, the downside is that a company like PayPal will also take a percentage of the gross income from the payments, which usually averages 3.5 percent. Although they claim to offer instant payments, the reality is that it still may take a few business days to place the funds in your bank account.
Leverage available integrated online payment systems.
Look for solutions that provide an integrated system. This is a solution that provides online invoicing and billing along with payment portals, receipt communications, and a dashboard with metrics about what is outstanding, paid, and in process.
The benefits of having an online payment system is that you can handle processing credit card payments online, settling invoices through ACH or bank transfer, or receiving payment through an online payment portal while still handling your estimates and invoices, CRM tools, and basic bookkeeping tasks. Sometimes, it can even include a time tracker that gives you an idea of your hourly earnings.
Try mobile payment options.
Depending on where in the world you freelance, bank accounts may not be an option.
That’s why there are other mobile payment options that provide a way to get paid online by your clients through your mobile phone and store the funds in a digital wallet instead of your bank. This allows you to get paid and make purchases without a financial institution.
How to decide which online payment option is right for you.
Be aware that a payment portal on your website may be a better alternative for those who are selling products. If you are just offering a service, the fees and costs of adding this payment to your website may not earn the ROI you would wish to receive. This may be when you would want to consider using an online payment portal or an integrated online payment system instead, especially if you need to bill only once or twice a month.
You will also want to understand what’s most convenient for your customer as well as what is the most cost effective solution for your business. . Do your research and determine what the rules are for payments in your corner of the globe. Also, take the time to learn about the benefits and risks as well as gauge what each company offers by studying reviews and their own marketing materials. From there, you can make a decision as a freelancer about the best way to get paid online.