The Internet is truly a wondrous invention. If three decades ago, you’d told people you could earn money virtually, via a computer, they would have looked at you as if you’d lost your mind. Yet here we are, with more and more of us now receiving online payments than ever before.
It doesn’t matter whether you’re a freelancer or a business owner, there’s a good chance that you receive payment, at least in part, online. But exactly what are the best ways to get paid online? Well, in truth, there is no right or wrong way, as different people prefer different methods.
For example, nowadays, some people earn their money and are paid in digital currency, such as in BitCoin form. Others, however, prefer a good old fashioned, tried and tested bank transfer. Some of you out there reading this, may not actually care how you are paid, providing you receive your money, but you should.
Here’s a look at several of the most popular and most efficient ways to get paid online, so take a look and see what you think.
Credit cards and debit cards – First and foremost, we’ll begin by looking at credit and debit card payments. If you’re a larger business, as well as making use of the various forms of accounting software currently available, you may also wish to enable your clients to pay you via credit card or debit card.
Now, if you do decide that this feature is for your business, you will need to decide whether you wish to use an intermediary holding account, or your very own dedicated merchant account. Whichever one you choose, will be based on a variety of different things, so do your research.
Ideally, you want one which will accept all major credit cards, including Visa, American Express, and MasterCard. If you go with credit and debit card payments, there is the bonus of the fact that payments can often be made right away, plus, as virtually every single person you deal with will own one card or the other, there will be no excuses for not receiving a payment.
Click-to-pay email invoice – Accounting software is now becoming more advanced than ever, and when it comes to invoicing your clients, you will instantly understand why that is. Nowadays we have what is known as click-to-pay email invoicing, which is where your client will be sent and invoice, and will then be able to pay you with a few simple clicks.
This is ideal for you and them because they can pay in seconds, you can receive payment in seconds, and they can instantly receive a receipt in the process. This payment method helps streamline your entire operation, plus it helps with security, it saves time, and it is better for the environment as it is paperless.
PayPal – You’ve heard of PayPal, right? Of course you have, everybody in the world pretty much knows about PayPal, and of course, PayPal is certainly a very viable method for receiving payment. With PayPal, funds can be taken from your account to make payment.
This could be a PayPal account, or the account itself can be linked to your bank account so it will automatically remove the funds for you. You then send the money to the recipient of your choice, often via their email address, and they then simply accept the payment and hold it in their account.
PayPal is simple, it is quick, and it is dominant, as pretty much everybody in the business world will own a PayPal account. PayPal is simple but there are processing fees as PayPal obviously have to take their cut, so you do not receive the total amount you have invoiced for, as you obviously have to pay your PayPal fees. With that being said, their charges are very reasonable, and using it does make life that little bit easier.
Stripe – When it comes down to the battle of the online payment gateway giants, it is often Stripe VS PayPal that people tend to focus on. Just as we have Apple VS Samsung we also have Stripe VS PayPal.
The thing that tends to make stripe more appealing than PayPal for some people, is the fact that Stripe charge 2.9% + 30cents for every successful charge. This is the same rate as PayPal, except for the fact that PayPal sometimes decides to throw in additional fees.
For example, with PayPal, if you charge cards from your website, you pay $30 per month, whereas with Stripe it is free. For recurring billing, with Stripe it is free, whereas with PayPal you pay another $10 per month. There are also many other small charges with PayPal, which, although small, do quickly build up. For these reasons, if you are a fairly small business, Stripe could be the better option for you.
Bank wire transfer – You can talk about advanced accounting software all you like, but sometimes, a simple bank wire transfer is all that is needed. With this, you simply provide your clients with your account sort code and bank account code, and they then simply send money from their account, over to yours.
Whilst this is considered very simple and straightforward, the biggest concern with this is the fact that people are in possession of your account number and sort code. Whilst this alone is nowhere near enough to be deemed dangerous in terms of being hacked etc, if they were also able to gain access to your bank card or pin for whatever reasons, they would theoretically have access to your entire account. As you’re probably aware, however, the chances of this ever happening to you are incredible, incredibly slim so truthfully, there is very little to worry about at all.
Now put these tips into practice and get paid faster with SlickPie!