Introduction

Freelancers are located all over the world, so paying them can be tricky. Whether they’re in another country or down the street, you need to be able to quickly and securely send their payment. While the benefits of hiring a freelancer are clear, figuring out how to pay them can sometimes be a challenge. There are payment options, currency conversions, legalities and compliance, tax laws, fees, and potentially more to consider. In this article, we'll explore the best practices for paying freelancers and tips to ensure a smooth payment process.

We’ll also discuss how the Transfi account is a low-cost way to pay your freelancers no matter where they are.

Ways to pay freelancers

Let's get into the various payment methods that you can use to pay your freelancer. The payment method you end up choosing can make a big difference in fees, transaction speed, and convenience, especially with international freelancers - so choose smartly!

1. Save Time and Money On Overseas Payments With Transfi Bizpay

Transfi Bizpay can help you save big time on international payments.

Transfi is not a bank, but a fintech platform to make transactions easier and a smart alternative to banks. The Transfi Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in multiple currencies. Signing up to Transfi Business allows access to Bizpay which you can use to pay multiple accounts in one go with the convenience of quick and cheap transfers. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Some key features of Transfi Business include:

• Low cost payments: make transactions using Transfi at very low costs and no hidden costs.

• Global Account: Send money to multiple countries in various currencies without the hassle of conversion rates and other charges, Transfi takes care of it all!

• Transactions with the best technology: Transfi provides access to payment via digital assets and stablecoins widely used across the globe, it makes transactions flexible and highly stable. 

• Free invoicing tool: Generate and send professional invoices and carry out financial operations with Transfi, all at one platform.

• Quick global payments: Making payments with Transfi is the quickest and easiest thing around the corner as payment can be made in just 3 steps that too in the blink of an eye.

2. Wire transfer

Wire transfers are typically used as an alternative to direct deposit for international freelancers. It’s a secure method of transferring large amounts of money between bank accounts. The transfer will process within a day domestically and a couple of days if they’re located overseas. Note that wire transfers are known to be expensive and are considered more outdated than other methods.

3. Money orders

Money orders are quite similar to checks, except that they are prepaid. Their advantage over wire transfers is that they don’t reveal your bank account details and don’t require a bank account. They can be instantly accepted and converted into cash. Unfortunately, there’s typically a $1000 limit, meaning that you may have to send multiple money orders.

4. PayPal

There’s no doubt you’ve heard about PayPal - it’s one of the most widely popular payment methods used by freelancers around the world. Freelancers can simply link their PayPal account to their bank account or credit card and receive payments in a matter of minutes. There are many positive aspects, including invoicing and buyer/seller protection, but PayPal does charge steep transaction fees - up to 3.5% and 2.9% for card payments - which means you might have to pay extra just to cover those costs.

5. Xoom

Xoom is a member of the PayPal family. Clients can use it to send payments to a bank account, or freelancers can pick up cash at a designated location depending on the country. It’s not as widely known as PayPal, but it’s suitable for cross-border payments and only requires a Xoom-specific email address or bank details.

6. Paper checks

Paper checks might seem outdated in the age of digital payments, but they can be a viable tangible payment method useful for keeping track of finances. Checks can take longer to process and clear and might prove complicated for international transactions.

7. Electronic Funds Transfer

Electronic funds transfer (EFT) is secure and convenient, where clients can transfer funds directly from their bank account to the freelancer’s bank account, typically using a third-party payment platform such as Transfi. Their added benefit compared to wire transfers and checks is that they can be easily tracked and are a lot more speedy.

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8. Direct Contracts

Although associated with Upwork, you can still use Direct Contracts to pay contractors outside the platform. You can enjoy the benefits of escrow protection, contract management, and dispute management and won’t have to pay any fees associated with the service.

9. Credit cards

Credit cards are a basic payment method that requires a merchant account with a payment processor such as Transfi, Stripe, Square, or PayPal. Clients simply pay for services using a credit card through an online payment form or invoice. There are benefits like fraud protection, but the transaction fees are high.

Why is Transfi best to pay freelancers globally?

1. Low Fees and Transparent Pricing
   Other payment methods often charge high fees for international transactions to freelancers or any other parties.Fintech platforms like Transfi, on the other hand, offer reduced fees and transparent exchange rates.

2. Real-Time Global Access
   Many fintech platforms offer robust mobile apps that let you manage your funds on the go. Whether you’re traveling or working remotely, you can check balances, transfer money, and convert currencies in seconds.

3. Integration with Payment Platforms
   Modern payment methods often integrate with popular payment systems like Transfi, PayPal, Stripe, or Apple Pay, simplifying global payments for businesses and freelancers.

When choosing the right platform for international transactions, users should consider factors such as integration compatibility, processing fees, supported payment methods, security features, and the reliability of customer support. The best platform for you will depend on your specific requirements, such as the volume and frequency of transactions, the countries you're dealing with, and your budget. Checkout Transfi’s Bizpay for easier transactions, faster payouts and collections and simplified transfers.

Conclusion

The best payment method for you depends on several factors including where the worker is located, the amount of the transaction, the administrative work involved, and the level of protection you’re comfortable with.

If you’re looking for the ultimate in convenience and security, consider paying freelancers through Transfi. The built-in payment methods and protections enable you to focus on doing amazing work with freelancers, and enables you to pay them quickly no matter where they’re located, without dealing with the administrative hassle.

To avoid long transaction times and complex setting up for carrying out international transfers, checkout Transfi’s Bizpay and avail the maximum benefits across countries.

Frequently asked questions (FAQs)

1. What are the ways to pay a freelancer?

• Fintech platforms like Trnafi
• Wire transfers
• Money orders
• Credit cards
• Paper cheques
• Electronic fund transfer
• Paypal 
• Xoom 

2. Why is Transfi the best way to pay freelancers?

• Low fees and transparent pricing
• Realtime global access
• Integration with payment platforms

3. How can freelancers be paid using wire transfers?

Wire transfers are typically used as an alternative to direct deposit for international freelancers. It’s a secure method of transferring large amounts of money between bank accounts. The transfer will process within a day domestically and a couple of days if they’re located overseas. Note that wire transfers are known to be expensive and are considered more outdated than other methods.

4. Why is it a bad idea to pay freelancers using money orders?

Money orders are quite similar to checks, except that they are prepaid. Their advantage over wire transfers is that they don’t reveal your bank account details and don’t require a bank account. They can be instantly accepted and converted into cash. Unfortunately, there’s typically a $1000 limit, meaning that you may have to send multiple money orders.

5. How to save time and money overseas through Transfi?

Transfi provides access to Bizpay which facilitates;

• Low cost payments
• Global Account
• Transactions with the best technology
• Free invoicing tool
• Quick payments