The gig economy has been in full swing as of late. As of 2020, there are 59 million people doing freelance work in the United States, and this number is likely to grow over the next decade. In this article, we’ll share a freelancer guide to getting paid online.
If you plan on freelancing or your business is already in full swing, one of the first things you need to figure out before signing a contract is how you’ll be paid. After all, freelance work isn’t “free.” Fortunately, there are several ways you can receive what you’ve earned online.
The golden rule for getting paid
Set expectations before anyone signs. When your proposal, contract, and invoice all say the same thing, money moves without friction. When details are vague, people guess, and guesses delay payments. Put these seven facts in writing on day one. What you will deliver. When you will deliver. How much it costs. What is due upfront. Which payment methods you accept. When each invoice is due. What happens if a payment arrives late.
Payment methods compared at a glance: Guide to getting paid online
Use this table to balance speed, cost, protection, and client experience. Pick two primary methods, then keep one backup for emergencies.
| Method | Typical fees | Settlement speed | Buyer protection and risk | Best use case | Client experience |
|---|---|---|---|---|---|
| Local bank transfer or ACH | Very low | One to three business days | Low chargeback risk, limited buyer protection | Retainers, recurring invoices, domestic clients | Smooth once set up, great for larger invoices |
| Wire transfer | Medium to high | Same day to two days | Final once sent, higher bank scrutiny | Large international projects, urgent payouts | Secure but administrative, best for companies |
| Card payment through an online link | Medium | Instant authorization, payout in one to three days | Chargeback risk to you, strong buyer comfort | Fast deposits, small to mid invoices, new clients | Familiar and easy on mobile |
| Online wallet platforms | Medium | Instant wallet transfer, bank payout in one to three days | Dispute systems favor the buyer on some platforms | Global clients, small goods or quick services | Very simple for non technical clients |
| Global account services for freelancers | Low to medium | One to three days depending on route | Low chargeback risk, strong compliance checks | Cross border projects, multiple currencies | Good for clients who pay by bank in their own currency |
| Escrow services | Service fee paid by client or split | Funds reserved upfront, released on approval | High protection on both sides | Fixed scope projects with milestones | Reassuring for first time relationships |
| Invoicing software with built in pay button | Medium | Instant authorization, payout in one to three days | Same as card rails, refunds are easy to process | Retainers and recurring work with subscriptions | One click from invoice to payment |
| Crypto paid to business wallet | Low on network fees, volatile value | Near instant on chain | Irreversible, compliance burdens vary by country | Niche use, tech native clients, high risk appetite | Not mainstream, only if both sides agree |
How to Get Paid as an Online Freelancer
Getting paid as a freelancer is similar to how you’d be paid as an employee, except you can’t go into the office and accept a paycheck. However, you can learn how to make pay stubs online if you want to print out your earnings. You’ll need paystubs to take out loans and open an account.
Checks
You can’t cash checks without a bank account, so keep those pay stubs handy. Accepting checks is one of the easiest ways to receive payments as a freelancer, and you often don’t have to pay any fees to cash them. This alone could make checks an attractive option.
Unfortunately, you have to wait for the check to arrive and clear it in your bank account. If you need money quickly, you could try one of the other five options on this list.
Credit Card
You can accept credit cards as a freelancer, although freelancers who use this option usually get their clients to pay in advance on their website. You need to buy credit card processing equipment, including terminals, a merchant account, and processing software.
If you don’t want to buy equipment, you can take credit card payments using an app like Square, Wave, Quickbooks, Google Wallet, and PayPal.
PayPal guide to getting paid online
PayPal is the most common eWallet freelancers use, and for a good reason. Opening an account is free, and it’s easy to figure out the fees you or your clients have to pay. What’s more, money appears instantly in your wallet, and you can easily transfer your funds to a bank account.
While the fees can be steep (2.9%-3.9% per invoice plus $0.30), most clients are already familiar with PayPal and can use the platform without much help.
Freelancer Getting Paid: Accounting Software
Some accounting software can help you track your income and also facilitate payment collection. QuickBooks and Freshbooks do this, but other lesser-known financial software and websites allow you to create invoices and send overpayments to your customers and clients.
You may want to use accounting software to handle payments if you have a lot of clients. Since you’ve already paid for the software, you won’t be charged per email or invoice.
Electronic Funds Transfer: Guide to getting paid online
An easy way for your client to send over funds quickly is by using electronic funds transfer or EFT. Payments will effortlessly move from a client’s bank account to yours. It can take 2-4 business days to receive your money because the bank must accommodate the request.
However, once the funds are in your account, they stay in your account. You don’t need to transfer between wallets. Still, the fees for EFT can be quite costly, ranging from $10-$20.
Freelancer Getting Paid: Cash App
Cash App is similar to PayPal, but instead of moving between multiple wallets, Cash App puts your funds directly into your account. Unlike PayPal, it can take several days before the funds appear in your checking account. Or, you can pay extra for an instant transfer.
It’s a better idea to use a Cash App for personal transfers rather than for business. Still, if you’re working on a single project for a client, Cash App might be the best option.
