Choosing the Payment Option That Is Right for You

oDesk, GetAFreelancer, Scriptlance, Elance and other freelance online staffing marketplaces and management platforms all offer a variety of payment methods. Understanding all of these methods and choosing the right one for you is a very important decision.

Unfortunately, in this world that we live, sometimes we have to pay to be able to get our money. That doesn’t usually put a smile on anyone’s face, but it’s sometimes necessary. Let’s talk about ways to minimize this loss of hard-earned money.

As I said, there are many payment options available. The best method of payment is ACH, which is a direct deposit of funds into your bank account. This is usually only available for those who have a bank account in the United States. This method is very convenient, and best of all, usually free of charge.

In my opinion, the second best choice is PayPal. Your payment is sent to you via PayPal, which is a very reputable online e-commerce business. There are two down sides. Not everyone can get a PayPal account. PayPal does not offer their services to every country worldwide; however, they are including more and more countries frequently. The second down side to PayPal is that they charge you a percentage of the funds that you receive, so you lose about 5% in this way.

Moneybookers, E-Gold, Payoneer Prepaid Cards, and wire transfers all fall into the same category for me. Avoid them all if possible! You will pay more than what’s fair to get your money in hand with these companies. Don’t get me wrong, they all serve their purpose. For the long term, try to get access to another payment method if you can. Use these as a last resort.

Checks are okay if you don’t mind waiting for the snail mail to deliver them and then waiting again for them to clear your bank account. Then there is always the chance that they could get lost in the mail. The company issuing you the check would most likely charge you to cancel the check as well. The good thing is that receiving your payment by check is usually free, or accompanied by a reasonable fee.

As you can see, there are many options to choose from. Find the option that costs you the least, and keep most of what you make. After all, you work hard for your money, right?