What are the best ways to get paid as a freelancer?
Thread poster: Francois Gauthier
Francois Gauthier
Francois Gauthier
Canada
Local time: 07:40
English to French
+ ...
Sep 24, 2020

Hello there,

As I am starting to get acquainted with this platform and freelancing in general, my biggest question is how do you safely get paid for your work? Which is your preferred provider? I am sure there is a guide or some past forum posts about it but I can’t find any. I was working on another platform where the client's payment was held in escrow so I never really had to worry about this.

Any insight would be greatly appreciated.

Many thanks.
... See more
Hello there,

As I am starting to get acquainted with this platform and freelancing in general, my biggest question is how do you safely get paid for your work? Which is your preferred provider? I am sure there is a guide or some past forum posts about it but I can’t find any. I was working on another platform where the client's payment was held in escrow so I never really had to worry about this.

Any insight would be greatly appreciated.

Many thanks.

Francois
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Thayenga
Thayenga  Identity Verified
Germany
Local time: 12:40
Member (2009)
English to German
+ ...
It depends Sep 24, 2020

Hello and welcome to freelancing, Francois,

the best way to get paid is, of course, a bank transfer, especially from customers in Canada/North America.
The other options in regards to foreign currencies are PayPal (hefty fee), Payoneer (fee when transferring to your bank account), and Transferwise (not sure about their fees). Surely there are other options, so the choice of the payment means depends on where your customers are located and in which currency they are paying you,
... See more
Hello and welcome to freelancing, Francois,

the best way to get paid is, of course, a bank transfer, especially from customers in Canada/North America.
The other options in regards to foreign currencies are PayPal (hefty fee), Payoneer (fee when transferring to your bank account), and Transferwise (not sure about their fees). Surely there are other options, so the choice of the payment means depends on where your customers are located and in which currency they are paying you, usually in US $ from most countries or from Europe in Euros.

Our colleagues might be able to name other means of receiving payment.

Much success!

Best,
Thayenga
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Maria Teresa Borges de Almeida
Fatine Echenique
 
Samuel Murray
Samuel Murray  Identity Verified
Netherlands
Local time: 12:40
Member (2006)
English to Afrikaans
+ ...
@Francois Sep 24, 2020

Francois Gauthier wrote:
I was working on another platform where the client's payment was held in escrow so I never really had to worry about this.


ProZ.com simply brings you and the client together, but all negotiation and discussion about payment terms, payment methods etc. is to be done between you and the client.

You have to tell the client what payment method you prefer, and the client might tell you his preferred method, and then you can decide if you want to use it or not. For example, you can say that you want to paid by PayPal. The client might suggest a payment method that you don't support or don't want to accept. For example, many translators outside of North America can't accept cheques.

Payment options include PayPal, Skrill, Payoneer, Transferwise, Zoom, SmartCat, bank transfer, cheque, postal order, money order, Western Union, etc. In my opinion, PayPal is easiest, although the transaction fees are quite high for large amounts (about 5%). Bank transfers often incur a fee for the client (which they may pass on to you) and often also incur an intermediary bank fee, which can't be predicted.

Each payment method comes with advantages and disadvantages, depending on where you and the client are. You'll notice that transaction fees are often for your own account, so the amount of money that you receive may be less than the amount on your invoice, owing to this.

And you have to make sure that you are certain that a client will pay, before you agree to work for him. You can ask for payment in advance, but few clients are willing to pay in advance. So it's always a risk with new clients.

[Edited at 2020-09-24 09:07 GMT]


Kevin Fulton
Peter Motte
 
Tina Vonhof (X)
Tina Vonhof (X)
Canada
Local time: 05:40
Dutch to English
+ ...
@Francois Sep 24, 2020

Welcome to Proz! The methods listed by Samuel are all safe but they come at a, sometimes hefty, fee. You should be aware that, although it may be the safest, a bank transfer is not free either. Even when the client pays any fees on their side, Canadian banks charge $14 per incoming transaction. On a large payment that may be acceptable but on frequent smaller payments from the same client it can add up. In that case you could consider invoicing, for example, once every two or three months.
... See more
Welcome to Proz! The methods listed by Samuel are all safe but they come at a, sometimes hefty, fee. You should be aware that, although it may be the safest, a bank transfer is not free either. Even when the client pays any fees on their side, Canadian banks charge $14 per incoming transaction. On a large payment that may be acceptable but on frequent smaller payments from the same client it can add up. In that case you could consider invoicing, for example, once every two or three months.

When I started out there weren't as many options as there are now, so I started using paypal and I still do. I find it convenient to pay for work-related expenses, such as my proz memberhip, etc. and for other purchases in the US. For downloading money to my bank, I only take out $500 at a time to keep the fee low.
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Sheila Wilson
Sheila Wilson  Identity Verified
Spain
Local time: 11:40
Member (2007)
English
+ ...
Escrow might be safe, but it's expensive Sep 25, 2020

Francois Gauthier wrote:
I was working on another platform where the client's payment was held in escrow so I never really had to worry about this.

One platform I know of that uses escrow payments charges service providers a whopping 20% of everything they earn.

Let's make one thing clear: a freelancer is an entrepreneur, a business person. Risk is part and parcel of business. If you can't handle risk, being an employee is your best bet. However, by "handle risk", I certainly don't mean accepting that you'll probably lose money. I mean you need to manage risk in the same way as you manage marketing or negotiation.

To reduce your risk, check out this site's Scam Centre: read about all the common scams and sign up for notifications of new scams. Also, in the Wiki area of the site you'll find an article on Risk Management. It informs on just a few of the possible checks you can make, so Google for other measures too. When performing due diligence (another term to Google), the checks you make should match the amount of risk you're taking on, but also you need to develop an instinct over time to sniff out dodgy proposals.

Bear in mind that the current "best-selling" scam is one where the client accepts your fee without quibbling and proposes an advance payment by wire transfer. So what appears to be the safest option may be anything but. OTOH, I've personally had a couple of clients in the Middle East move heaven and earth to pay me in the face of international sanctions. It took one client six months but finally his wife visited another country and made a deposit from there that included a hefty (unsolicited) extra amount. Stay positive: the vast majority of B2B clients are perfectly trustworthy. Just don't let yourself be(come) gullible.


Fatine Echenique
 


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What are the best ways to get paid as a freelancer?







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