To common users of banking services, money transfers are money transfers. As in, you don’t consider them complex: just a tool to send and receive funds. But then, you face a plethora of terms like bank transfers, wire transfers, electronic payments, online transfers, and so on. And you start to wonder – “is there a difference between all of these?” and “what should I use?”. Well, let’s figure it out together! In this article, Genome will primarily focus on bank transfers and wire transfers and how they differ and compare wire payments to other transfer options as well. Wire transfer:
Freelancing has proven to be a lasting trend that indicates global social changes. Truth is that many people can now work from home or travel as much as they want due to numerous freelance job options. They are not tied to one city or even country anymore. More and more young people try living the lives of digital nomads to explore the world before finally choosing what they want to do.
With great freedom comes great responsibility. If you’re a freelance worker or considering doing some side projects in your free time, it’s worth looking into available online payment methods. What’s more, you will probably need an online business account to receive or make payments. In Genome, we do not only offer business financial services but also help with opening personal, business, and merchant accounts. Today, we’re shedding the light on payments for freelancers and their pros and cons.
What is a payment option
To put it shortly, it’s a way of paying somebody for the goods or services they’ve provided to you. Payment options are also called payment methods and in this article, we’re using these phrases as synonyms. For example, IT specialists and, let’s say, people selling handmade candles or soap can opt for different online payment methods. Location is also of great importance here because payments for freelancers in the USA and Europe have different fees, time frames, and transfer limits.
The most common payment options are:
- Wire transfers
- Card-to-card transactions
- Digital wallet transfers
With Genome, for example, internal transfers are free and instant between all users on personal and business accounts. We also bring to the table top-notch merchant financial services, so that you can receive and send payments within one platform. Visit our website for more information on Genome online business accounts and the full list of all features.
Online payment methods
We’ve prepared a short table covering widely used platforms for payments for freelancers. Let’s have a look:
|Payment methods||Paypal||Wise (former Transferwise)||Payoneer||Stripe|
|Countries||Almost 200||Almost 80||Almost 200||26|
|Currencies supported||More than 150 local currencies||More than 50 currencies||More than 150 local currencies||More than 135 currencies|
|Card-to-card payments||Not applicable||Not applicable|
|Money transfer using only an email||Not applicable|
|Fees||Fixed charge + transaction fee (is different for every country)||Fixed charge + transaction fee (is different for every country)||Fixed charge for transfers and high ATM withdrawals fee||Standard fee of 2.9% + a $0.30 per transaction fee|
|Business account opening||+||+||Not applicable|
|Card issuing||PayPal Cash Card||Wise Debit Card||Payoneer Prepaid Mastercard (almost 30$ annual fee)||Stripe Corporate Card (Visa credit card)|
How do freelancers get paid?
Freelancers, just like any other workers, want to get paid fast and with the lowest fees possible. Hiring freelancers has plenty of benefits, including reaching out to specialists abroad and cheaper salaries for them. However, when it comes to payment options for such professionals, things can get more complicated. Fortunately, one can use different platforms to receive and send money. Among the most popular online payment methods for freelancers are wire transfers, card transactions, and digital wallets such as PayPal or Payoneer.
Which payment method is best for freelancing?
There’s no one answer to this question because each situation is unique. The payment options that work for a freelancer in the US might not suit a specialist in the same industry living in France, for example. In general, when choosing a payment option, you should keep in mind the next factors:
- time frames
- fees and charges
- currencies and countries supported
- payment methods
- customer support availability
- transfer limits
Is PayPal good for freelancers?
PayPal is definitely a widely used payment option for freelance workers all over the world. It provides different online payment methods, such as card-to-card transactions, PayPal balances, money transfers, etc. This digital platform is available in many countries and is highly reliable. Nevertheless, PayPal fees are quite high, which is a serious downside for some freelancers and their clients.
Can I use a business account to pay freelancers?
Yes, if you have one. Business accounts are not required, but it’s always best to separate your personal and business expenses.