With all the different payment gateways for freelancers, choosing which one to go with can be challenging. To make life a little bit easier, we’ve put together this guide to help you find the best payment gateway for freelancers.
What is a Payment Gateway?
If you’re a freelancer, you know how important it is to get paid on time. But to get paid, you need to have a payment gateway set up. A payment gateway is a service that allows you to accept payments online.
There are many different payment gateway providers, and choosing the right one can be tricky. But don’t worry – we’re here to help! This blog post will review some of the most popular payment gateway providers and help you choose the best one for your freelance business.
So, what is a payment gateway? Keep reading to find out!
The Four Most Popular Payment Gateways
There are four popular payment gateways that freelancers can use: PayPal, Stripe, Braintree, and 2Checkout. Each has its strengths and weaknesses, so choosing the right one for your business is essential.
PayPal is the most popular payment gateway for freelancers. It’s quick and easy to set up, and there are no setup or monthly fees. You only pay when you make a sale; the transaction fee is just 2.9%. PayPal also offers a wide range of features, including automatic invoicing, currency conversion, and fraud protection.
Stripe is another popular choice for freelancers. It has no setup or monthly fees, and the transaction fee is just 2.9%. Stripe also offers a wide range of features, including automatic invoicing, currency conversion, and fraud protection. However, Stripe does have some downsides. For example, it’s not as widely accepted as PayPal and doesn’t offer as many features.
Braintree is a good choice for freelancers who want to accept credit card payments. There are no setup or monthly fees, and the transaction fee is just 2.9%. Braintree also offers a wide range of features, including automatic invoicing, currency conversion, and fraud protection. However, like Stripe, Braintree is not as widely accepted as PayPal and doesn’t offer as many features.
Fees Associated With Each Payment Method
There are a few different payment methods that you can use when paying your freelancers, and each one comes with its own set of fees. Here’s a breakdown of the most common payment methods and their associated fees:
- Credit cards: When paying by credit card, you’ll typically be charged a transaction fee of 2-3%.
- PayPal: PayPal is one of the most popular payment methods for freelancers. They charge a transaction fee of 2.9% + $0.30 for each transaction.
- Bank transfer (ACH): ACH transfers are typically free or have very low fees. However, it can take several days for the funds to clear, so this may not be the best option if you need to pay your freelancer quickly.
- Wire transfer: Wire transfers are typically faster than ACH transfers but come with higher fees. The average fee for a domestic wire transfer is $30, while the average for an international wire transfer is $50.
Best Practices for Choosing a Payment Gateway
There are a few key things to keep in mind when choosing a payment gateway for your freelance business:
- Ease of use: The payment gateway you choose should be easy for you to use and easy for your clients to use as well. Look for a gateway with a simple checkout process that doesn’t require a lot of steps or information from your customers.
- Fees: When you’re running a freelance business, every penny counts. Make sure to compare the fees associated with different payment gateways before making your decision – some charge per transaction, while others charge a monthly fee. Choose the option that will save you the most money in the long run.
- Security: Your clients’ personal and financial information should be safe and secure when they make a payment through your gateway. Look for gateways that offer high levels of security, such as fraud protection and data encryption.
- Support: Things will inevitably go wrong sometimes – that’s just part of the business. When they do, you want to be able to rely on your payment gateway provider for help. Choose a company that offers excellent customer support in case you need assistance.
Many payment gateway options are available for freelancers, and it can be tough to decide which one to use. Ultimately, it comes down to personal preference and what works best for your business. We hope this article has helped you narrow down the field and choose the right payment gateway for your needs.