How To Get Paid As A Freelancer: The 6 Best Apps For Freelance Payments
If you are a freelancer looking for ways to get paid, keep reading to discover why we prefer Square or QuickBooks over popular options like Venmo.
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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Shannon VissersShannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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Getting paid as a freelancer can be tricky. Freelancers have no standard payment platform or app to get paid, and freelance payments are frequently late.
For freelancers, contractors, and consultants looking to spend more time doing billable work and less time sending invoices and chasing after payments, we put together this guide on how to get paid as a freelancer.
We’re happy to let you know that freelancers can use several affordable payment platforms to send invoices and get paid online. From credit cards to ACH to money transfer apps, the best freelance payment systems will facilitate you getting paid via modern, safe, quick methods.
Let’s review the best online payment software for freelance payments and other tips on getting paid as a freelancer.
Why Freelancers Use Online Payment Apps To Accept Payment
So how do freelancers get paid? And what are the best ways to get paid as a freelancer? Of course, the only fee-free way to accept payments from your clients is to take cash and/or checks. However, these old-school payment methods can’t match the safety and convenience of digital payments.
For freelancers of any type, online payments are way faster, more secure than checks, and more convenient than collecting cash in person. Online and mobile payment apps are easy to use and offer numerous payment options, from bank transfers to credit cards to Apple Pay. Requesting payment from a client is as easy as emailing an invoice or texting a payment link.
Many online payment platforms also have project management and accounting software functionality, allowing freelancers to do things like send estimates, track project completion, and reconcile payments.
How Freelancers Get Paid: 6 Best Freelancer Payment Methods
Below are our top software picks for getting paid as a freelancer. These freelance payment methods offer invoicing and online payments with reasonable fees and pay-per-use service. The best freelancer payment apps also have added features like recurring billing, estimates, and automated payment reminders.
1. Square Invoices: Best For Businesses Using Square POS
Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.
Pros
Free plan
Accepts Cash App & Afterpay
Integrates with Square POS & Square Online Store
Numerous third-party integrations available
Cons
No multicurrency support
Higher processing fees on free plan
Why We Chose Square Invoices For Freelancers
Square is best known for its credit card processing and mobile POS system. However, freelancers should know that Square also offers a service called Square Invoices that lets you send invoices to clients and accept payments online. Square Invoices offers a good balance of functionality and affordability; with a free plan, you have the ability to send estimates, contracts, and payment reminders, as well as collect deposits.
Square Invoices does have some weaknesses — no multicurrency support and limited sales tax functionality. There’s also no project management at the free level, so if you tend to have complex multistage projects where you bill by milestone, you’ll need to spring for the paid version of the software, Square Invoices Plus. Also, Square is not ideal for high-risk businesses or businesses with large processing amounts (more than $10,000/month).
Despite its shortcomings, Square Invoicing is a good solution for businesses that already use Square to take in-person payments on their phone (or use Square POS or Square Online Store) and want to stay within the same Square architecture.
Square Freelance Payment Features
Your Square Invoices account comes with the following features for freelancers:
Accept credit & debit cards, mobile wallets (Apple Pay, Google Pay, Cash App Pay), BNPL (Afterpay), gift cards, ACH payments, & more
Schedule recurring invoices
Save and charge cards on file
Collect deposits
Automatic payment reminders
Unlimited estimates
Send contracts with digital signature collection
Some “Plus” features include
Create milestone-based payment schedules
Send batch invoices
Customize invoice layouts
Track project status
Auto-convert accepted estimates to invoices
Reduced transaction fee
Square Pricing
Square Invoices has no monthly fee unless you want Square Invoices Plus. For $20/month, this package offers some basic project management features and a lower per-transaction fee.
For online invoice payments on the Plus plan, the Square fee is 2.9% + $0.30 per invoice (debit, credit card, or mobile wallet payments) or 3.5% + $0.15 to charge a card stored on file. The fee is the same for all cards processed online, and there is no charge for customers who pay invoices via cash or check.
However, on the free plan, the processing fee for invoiced payments is higher: Square recently raised this fee to 3.3% + $0.30 per invoice.
Smaller to mid-sized businesses with a limited number of users
Pros
Reasonable transaction fees
Accounting features
Multicurrency support
Option to use Stripe or PayPal as processor
Cons
Limits on number of users & clients
Not as many accounting features as QuickBooks
Why We Chose FreshBooks For Freelancers
For freelancers with a limited number of clients, FreshBooks might be the invoicing software you need. Technically, FreshBooks is accounting software, but it lacks accounts-payable capabilities, so it might not work as well for accounting as the various versions of QuickBooks. With that being said, FreshBooks offers a few more invoicing features than QuickBooks Self-Employed, including the ability to send estimates and schedule late fees. FreshBooks also has project management capabilities, such as the ability to manage project budgets.
As for invoicing, FreshBooks has two basic templates that are customizable. Multilingual and multinational currency support is also offered, and with FreshBooks’ project management feature, you can create and keep track of hourly or flat-rate projects.
Both of FreshBooks’ plans for freelancers have a client limit; however, the lower-priced (Lite) plan has a lot of functionality at a low price point for freelancers with just a few clients.
FreshBooks Freelance Payment Features
FreshBooks offers these freelancer payment features:
Accept credit, debit, ACH, & digital wallet payments
Checkout links to get paid without an invoice
Unlimited & customized invoices
Unlimited estimates
Accept deposits
Automated recurring invoices
Automated late payment reminders
Schedule late fees
Manage budget & billing for projects
Unlimited proposals (Plus plan only)
Client retainers (Plus plan only)
FreshBooks Pricing
FreshBooks pricing plans for freelancers are $17 or $30/month, depending on which plan you choose. (Pricing is currently 50% off for the first six months, bringing this lowest-tier plan to $8.50/month.) The main difference between the Lite and Plus plans is the Lite plan only allows 5 clients, and the Plus plan allows 50. The Plus plan also has a few more invoicing features, like proposals and retainers, and more accounting features.
Each of FreshBooks’ pricing plans only supports one user by default (additional users cost $11/month each).
For payments made through FreshBooks (powered by WePay), each invoice costs 2.9% + $0.30 per transaction for most credit cards (American Express is 3.5% + $0.30 per transaction), regardless of plan. You can also use Stripe or PayPal as your processor for the same fee. ACH transfers cost 1% of the transferred amount.
Higher transaction fee when clients pay with PayPal
Why We Chose PayPal For Freelancers
Like Square, PayPal is a third-party processor that provides a free invoicing feature with no monthly fee. And like Square, PayPal is super easy to use and suits freelancers making under $10K/month.
However, PayPal has more features than the free Square Invoicing plan. For one, PayPal Invoicing offers international capabilities with multicurrency support, which is great if you tend to freelance overseas (or if you’re overseas and have clients in the US). PayPal also has lower merchant fees than the free Square Invoicing plan for customers paying with credit or debit. And as you might expect, PayPal Invoices also lets your clients pay with PayPal, which is a nice option to be able to offer.
PayPal Freelance Payment Features
PayPal has the following features for freelancers:
Accept credit, debit, ACH, digital wallets (Apple Pay, Google Pay, PayPal, Venmo), & BNPL (PayPal Pay Later)
Customize invoice with your logo, contact information, & more
Send unlimited invoices & estimates
Easily convert accepted estimates to invoices
Set up recurring invoices
Tipping option
Automated payment reminders
API to integrate invoicing function into custom billing software
PayPal Pricing
There’s no monthly fee to use PayPal invoices. All you need is a free PayPal account (your customers do not need a PayPal account).
PayPal charges 2.99% + $0.30 for invoiced transactions made by credit or debit cards. PayPal charges 3.49% + $0.49 when customers pay their invoice using PayPal, Venmo, or PayPal Pay Later. Variations on cross-border/international charges apply.
Not as many project management features as FreshBooks
Why We Chose QuickBooks For Freelancers
QuickBooks Self-Employed is a cloud-based version of QuickBooks designed for freelancers, independent contractors, and eCommerce merchants. QuickBooks Self-Employed isn’t full accounting software, but it has the features freelancers need most to manage federal taxes, track deductions, and separate personal and business expenses.
If you already use QuickBooks for your accounting—as millions of small businesses do—then it makes sense to use QBSE to send invoices and process payments. Even if you don’t use Quickbooks already, it’s a great accounting tool for your self-employed business, especially if you also need invoicing. QuickBooks’ processing fee is quite reasonable as well.
If you bill by project milestone and wish to stick with QuickBooks for your invoicing needs, you can upgrade to QuickBooks Online; you’ll also need to subscribe to QuickBooks Online if you need auto-update and reconciliation.
QuickBooks Freelance Payment Features
Here are some freelance payment features that come with QuickBooks Self-Employed:
Send personalized invoices with your logo
Take payments via cards, ACH, Apple Pay, PayPal, and Venmo
Send invoices directly to customers’ QuickBooks accounts
QuickBooks Pricing
There are three tiers of Quickbooks Self Employed service, with the basic tier costing $15/month (new users can get a 50% discount for the first 3 months, bringing the price to $7.50/month). As for the processing fee using QuickBooks Payments, you’ll pay 2.9% + $0.25 per invoice when the invoice is paid by credit card or a digital wallet. ACH transfers will cost 1% per transaction (capped at $10).
If you already use QuickBooks Online ($30+/month) for accounting, invoicing is already included. If you use QuickBooks Desktop, you’ll pay a higher fee (3.3-3.5% + $0.30) for invoiced payments.
Though many products have free versions of the software that freelancers can use to accept payments, you usually need to subscribe to higher-tier paid plans to get advanced features. By contrast, Wave is a completely free bookkeeping and invoicing software solution, with no artificial limits on invoicing, contacts, items, or other features. In case you’re wondering, Wave makes money through payment processing, commissions on loans, payroll processing, and professional bookkeeping services.
The software supports multiple companies and offers personal accounting as well.
Wave Freelance Payment Features
Accept credit, debit, ACH, & digital wallet payments (Apple Pay)
Get paid out in 1-2 business days (up to 7 days with ACH)
Alerts when your invoice is viewed
Invoice dashboard showing overdue invoices, outstanding invoices, average number of days it takes your invoice to get paid, & your next payout
Wave Pricing
Wave charges 2.9% + $0.60 per credit card transaction (except Amex is 3.4% + $0.60) with a processing time of 1-2 business days. Wave charges 1% per transaction for ACH payments with a processing time of two to seven days.
Wise (formerly TransferWise) offers freelancers a transparent, low-cost way to accept payments across borders. Wise can charge such low fees by having bank accounts in the countries in which it operates — when someone in another country pays you, their payment goes to the Wise bank account in that country. The Wise account then pays you in your country. As the payment doesn’t cross borders, currency conversion charges and other associated fees are eliminated.
Along with its money transfer services, TransferWise offers features for freelancers and businesses that need to provide payroll support to overseas employees. Particularly noteworthy is a batch payment tool that can process up to 1,000 payments at a time.
In most cases, payments should arrive within one to two days, making this option faster than the normal timeframe for individual users.
Wise Freelance Payment Features
Freelancers can use Wise to accept international payments with the following features:
Accept credit, debit, ACH, wire transfer, & digital wallet payments
Set up local account details for your business in any of 9 currencies
Hold money in over 40 supported currencies & convert at mid-market exchange rate
Free invoice generator with unlimited invoices
Integrations with QuickBooks, FreshBooks, & other accounting software
Wise Pricing
Wise has no monthly fee. Wise’s service fees generally range between 0.4 and 1.4% of the amount transferred, based on the type of currency being sent and received. Thankfully, Wise offers an online calculator that will do the math for you.
You can send money to a Wise Business account via bank transfer for free when the currency stays the same.
Why We Don’t Recommend These Apps For Freelance Payments
Venmo
Venmo is how many freelancers and independent contractors, such as hair stylists collect mobile payments from customers. However, Venmo doesn’t include invoicing or many other business features; only approved businesses can use Venmo to accept business payments. Approved Venmo businesses will pay a processing fee of the standard rate of 1.9% + $0.10. If you do try to use Venmo to accept freelance business payments for free, be aware that Venmo has been cracking down on freelancers who try to accept payments in exchange for goods and services without paying the fee.
Stripe
Just like its contemporaries Square and PayPal, Stripe is a solid online payment processor whose services are generally well-suited to small businesses. However, Stripe is not that convenient for freelancers or self-employed individuals, as the setup process is more complicated, and it may even require developer skills to integrate Stripe into your website. Moreover, Stripe charges an extra fee for invoiced payments in addition to its standard processing fee.
Zelle
Zelle started as a consumer-only P2P money transfer app, but in 2018, the company moved into the B2B payment space. Unlike apps such as PayPal and Venmo, a Zelle money transfer goes directly from one user’s bank account to another. Accordingly, to use Zelle for business, Zelle must be integrated into your bank’s mobile banking app, and your bank must specifically permit the use of Zelle for business (not just personal) transactions. Without advanced invoicing and tax features, Zelle didn’t make our list of top choices, but if you’re still interested, check with your bank to see if you can use Zelle for business.
Cash App
Cash App (once known as Square Cash) is a Venmo-like money transfer service that didn’t quite make our Best Of list for freelance payment options. Like Venmo and Zelle, it’s a handy way to quickly send and receive digital payments. However, without invoicing and task management capabilities (as well as the fact that Cash App can’t be used to send payments across borders), Cash App doesn’t have the heft to be a true standalone payment solution for freelancers.
Alternate Ways To Receive Payment For Freelance Work
Besides online payment software, here are some alternate ways freelancers get paid:
Check: Checks are simple and straightforward with no fees. However, you have to wait for the check to come in the mail (unless your client gives you one in person), and there’s the possibility that the check could get lost in the mail or even stolen.
Cash: Even though more businesses are going cashless, cash is convenient, instant, and carries no fees. Some contractors may prefer to get paid in cash so they don’t have to report their earnings to the government (we don’t recommend this). But you can’t mail cash or send it electronically, so it’s not a good option for anyone working remotely.
Credit Card: Some types of freelancers who do in-person work have the option to take credit card payments. In this case, you can use a POS app like Square or Zettle with a card reader. Modern mobile card readers can accept contactless credit cards as well as digital wallets such as Apple Pay. Like online invoices, credit card payments do take a small fee out of your earnings, but they are fast and secure.
Direct Deposit (ACH): ACH/direct deposit is how most employees are paid, though freelancers can be paid this way too. This type of direct bank-to-bank transfer is secure, takes 1-3 days to come through, and doesn’t incur any fees for the recipient. However, not all clients are set up to offer ACH. As mentioned, payment apps like Square can accept ACH payments, but you don’t necessarily need to use a third-party app for ACH.
Wire Transfer: Wire transfers are similar to ACH payments in that the money is sent directly to your bank account, but they are faster and less secure than ACH, since a wire transfer is almost instant and, in most cases, irreversible. Your bank may charge a small fee to receive a wire transfer, but most fees are charged on the sender’s end.
Freelance Marketplace: There are various online platforms that companies can use to hire freelancers, and freelancers can use to find work and get paid. The largest online freelance marketplaces are Freelancer.com, Upwork, and Fiverr. The downside is that these platforms charge freelancers high commission fees ranging from 10 to 20% of earnings. I would only recommend using one of these freelancing services if you are just getting started with freelancing and have no clients.
11 Tips To Make Getting Paid As A Freelancer Easier
Even with the best invoicing tools available, there are still some tricks to getting paid that you can incorporate into your business practices. Beyond freelancer payment methods, we’ve also included some tips on how to get paid as a freelancer, compiled below.
Send Out Invoices & Then Follow Up
This may sound obvious, but you’d be amazed how many freelancers fail to do this regularly. If you don’t send out invoices, then your clients have no way of knowing (or have a perfect excuse for not knowing) how much they owe you and by what date they must pay you. We know it’s painful for freelancers to stop doing billable work to send out invoices. That’s why automated invoicing software can be important.
Of course, you must send invoices and send follow-up reminders, so those who are slow to pay (or won’t pay) can be reminded of the bill. Fortunately, a lot of the invoicing platforms we highlighted above also send automatic follow-ups.
Have A Clear Contract
A contract doesn’t have to be full of legalese. Just set out, in plain English, what you’re going to do for your client, when everything is due, how you’re going to send the work to your client, and how and when they will pay you. Sometimes, you can attach your work proposal to ensure clarity.
You don’t always need a lawyer to do this, but once you start making money as a freelancer, it’s probably best if you hire a lawyer to draft a form contract for you to use for all your freelancing work.
Require A Deposit
Some clients — especially new clients — can be challenging to work with. They might claim you’ve done a bad job, require you to fix something repeatedly, and then refuse to pay. So your time isn’t a complete loss, ask for a deposit before starting work. This way, at least you’ll get paid something for your troubles. The exact amount of the deposit depends on the customary practices of each industry, with some requiring up to 50%.
Do some research to have a reasonable starting point, and adjust the percentage depending on the situation.
Consider Using An Escrow Service
An escrow service is sort of a man-in-the-middle. It solves the problem where the freelancer demands payment in full before the work starts, but the client fears the freelancer will take the money and not do any work at all. When you hire an escrow service, the client sends the money to the escrow to be held until the job is completed. Then the escrow service releases the money to the freelancer.
Some freelancer platforms, such as Upwork (plus Upwork’s slightly different new escrow service) and Fiverr, work like that. Of course, escrow services charge a fee, but at least you’ll have peace of mind knowing you’ll be paid for your work.
Break Down Tasks & Give Detailed Descriptions
This only applies if you bill by the hour, but people like to know what they’ve paid for. If you break down your tasks and describe them in some detail — e.g., “write first draft (2 hrs.), revise draft (1 hr.), fact check (1 hr.)” instead of “write article (4 hrs.),” the client will have some comfort that you’ve done the work. And if they do dispute the bill and you have to write down your hours, you can more easily do so and perhaps write down less if you have a detailed breakdown.
Be Upfront About Costs To Eliminate Surprises
People don’t like to be surprised by a huge bill. Even though it’s difficult and some potential clients will go away after the talk, be upfront about your charges. If you’re not exactly sure, do your best to give an estimate and make sure your client understands that this is a “soft quote” (and write the amount down, so neither side misremembers the number).
If You're Going Over Budget, Discuss ASAP & Get The Client's OK Before Proceeding
Expanding on the “no surprises” principle, if you anticipate going over a money or time budget set at the start of a project, let the client know about this right away. The client might tell you to ignore some aspects of the project while focusing on others. Or the client might want to terminate the project (make sure you get paid for your services up to the time of termination). Or the client might approve the revised budget. Be sure to get everything in writing so everyone understands the new goal.
If You Give A Discount, Make Sure The Client Knows About It
People always like a discount, so let the client know if you do give one. This way, you can earn their appreciation, which might translate to faster payment and maybe even repeat business.
Consider Giving A Discount For Prompt Payment & Charge Interest For Late Payment
Related to the above, you might set out a policy where you always provide a discount if you receive your payment within, say, 10 days of sending the invoice but also charge a penalty for delayed payment. This incentive can get you paid faster. But if you wish to charge a penalty, check your state’s usury laws to make sure you’re not in violation.
Don't Hesitate To Pause Work If The Client Hasn't Paid
If you’re doing work with milestone payments and your client hasn’t paid the first milestone while you’re ready to move on to the third milestone, don’t hesitate to stop work until you get paid, at least for the first milestone or maybe both the first and second milestones.
If they don’t pay, your time is better spent going out to get new paying clients than doing work that you’re not sure you’ll be paid for.
Don't Be Shy About Firing Nonpaying Clients
Don’t fall into the trap of thinking that having a client is better than having none. Non-paying clients make you waste time doing their work when you can better use that time finding other clients who will pay. Firing a client — especially one who used to pay but now won’t — will be one of the most difficult things you’ll do as a freelancer, but sometimes, it’s the only sensible thing to do.
The Bottom Line On How To Get Paid As A Freelancer, Solopreneur, Or Consultant
Online invoicing software makes it easier than ever to get paid as a freelancer. These programs—many of them free—eliminate the need for freelancers to chase payments by doing most of this work for you. Invoicing apps will send your clients automated payment reminders and even let you schedule late fees if your client still hasn’t paid up after a certain amount of time has passed.
Your freelance business can also use software to send estimates and auto-convert these estimates to invoices. Best of all, online invoices let your client choose from a variety of payment methods, from credit card, to bank transfer, to digital wallets, to make payments convenient and thus eliminate most excuses for nonpayment.
Freelancers get paid in a variety of ways, including checks, cash, bank transfers, online payment platforms such as PayPal, and online freelancing platforms. Freelancer.com is the largest online freelancer platform, with more than 64 million active users.
What is the best way to get paid as a freelancer?
For most freelancers, the best way to get paid for freelance work is using a free invoicing and payment processing app like Square Invoices, PayPal, or Wave. These apps let businesses send unlimited digital invoices for free; you only get charged a small fee when a customer pays.
Freshbooks and QuickBooks are also good options if you also need accounting features, while Wise and PayPal are best for international freelance payments.
Should freelancers use Venmo to get paid?
Freelancers can use Venmo, but remember that Venmo and other cash apps are still subject to the IRS’s tax reporting requirements for business income. You must also be approved as a Venmo business in order to accept payments through the service and must pay a fee.
Non-approved businesses using Venmo for free may be penalized, and starting in 2024 Venmo will send a 1099K if you receive more than $600 per year through the app.
What are the best PayPal alternatives for freelancers?
Some of the best PayPal alternatives for freelancers include Square, Wave, and QuickBooks Payments. These apps include invoicing and other features, and charge lower fees compared to PayPal in some cases.
What is the best payment system for freelancers?
The best payment systems for freelancers charge minimal fees and make it easy and convenient for your clients to pay you online. Depending on what type of work you do, your ideal freelance payment system should have project management features, like FreshBooks, or the ability to send recurring invoices, like Wave.
In Summary: How Freelancers Get Paid: 6 Best Freelancer Payment Methods
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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