In the US alone, an estimated 72.9 million people freelance in some capacity—and that makes for a lot of payment transactions when they charge for their services. That’s why it’s so important for freelancers to choose the right payment method and have clear payment terms and conditions.

Understanding and carefully selecting your payment options helps ensure you are compensated promptly and fully for your work. Freelancers can be paid through methods such as bank transfers, credit and debit cards, peer-to-peer payment networks, paper checks, or cash. These options can open up new opportunities—and make it hard to choose.

We’ll explain the common methods freelancers use to get paid and how to choose the best one for you.

What’s in this article?

• What is a freelancer?
  
• How to get paid as a freelancer: Payment methods
  
• How often do freelancers get paid?
  
• Choosing how to get paid as a freelancer
  
• How to use Stripe to get paid as a freelancer
  
• How Stripe Payments can help
  

What is a freelancer?

A freelancer is a self-employed person who offers services to clients on a per-project or per-hour basis. These services often fall within a particular skill set or expertise. For example, a freelance writer may offer content creation, editing, and proofreading services, while a freelance graphic designer may offer logo design, illustration, and website design services.

Freelancers have the flexibility to choose the type of work they do, clients they work with, and rates they charge. Freelancers can work with multiple clients at the same time and are not considered employees of the businesses they work for, but rather independent contractors.

Freelancers are responsible for their own business costs such as marketing, taxes, and health insurance. They often work remotely and use digital platforms to connect with potential clients, collaborate on projects, and receive payment. The rise of the gig economy and remote work has led to a significant increase in freelancing. Statista projects that in 2027, there will be 86.5 million freelancers in the United States, a figure that would constitute more than 50% of the total US workforce.

How to get paid as a freelancer: Payment methods

As a freelancer, it’s important to understand the different payment methods and payment platforms that you can use to receive payments from clients. Each method has its own advantages and potential drawbacks, and some may be better suited to your needs depending on your location, the nature of your work, and preferences of your clients:

• Bank transfers: Bank transfers, including direct deposits, are a convenient and common choice for freelancers. For example, a freelance event planner working with a local client may agree on bank transfers as their method of payment. Once the event is planned and executed, the client would initiate a transfer from their bank account to the event planner's bank account.

• Peer-to-peer payment networks: Digital payment platforms like PayPal, Venmo, Cash App, and Zelle facilitate quick money transfers. For instance, imagine you're a freelance illustrator creating artwork for an independent game developer in another country. With a digital platform that supports international transactions, the developer could send your payment swiftly and securely once your artwork is approved. A freelance dog walker working with several local clients might prefer a similar digital platform app for easy payments that clients can initiate from their smartphones.

• Freelance marketplaces: Websites such as Upwork, Fiverr, and Freelancer have built-in systems to accept payments. For example, a freelance web developer could use Upwork to connect with a client who needs a website overhaul. After the freelancer completes the project and the work is approved, the client pays the freelancer through Upwork's system. The funds are held in an escrow account during the project, which adds a layer of financial security for the freelancer.

• Credit and debit cards: Stripe allows freelancers to accept debit and credit card payments directly, as well as bank transfers, typically through the freelancer’s personal websites. For example, a freelance business consultant with her own website might use Stripe to accept payments for her online courses. Clients can pay directly on the website, and Stripe processes the payment and deposits the funds into the consultant's bank account. Freelancers can also use pay by link to accept credit card payments, which is an easy and secure way to be paid without needing a full website. Pay by link allows clients to click a link in an email or text to pay with a card, digital wallet, or bank transfer.

• Paper checks or cash: While not a common payment method in the digital age, some clients still prefer to pay for services with checks. For instance, a freelance writer hired for a project by a major publisher may receive a check as payment and deposit that check at their bank. The publisher's finance department might prefer this method because it aligns with their established accounting procedures. Freelancers can also receive payment in cash but should keep meticulous records when doing so. If a client pays in cash, provide them with a receipt and keep a copy for your business.

Each of these methods caters to different needs and circumstances. When choosing the most appropriate payment methods, independent contractors should consider their own situation, clients' preferences, and the nature of their work. No matter the method, freelancers must ensure the client agrees to all payment terms before starting work.

How often do freelancers get paid?

Freelancers can get paid in a variety of ways, depending on the agreements they make with their clients:

• Hourly rate: The freelancer charges the client for each hour of work completed. Typically, this is used for ongoing or long-term projects for which the scope of work is not clearly defined up-front.

• Project-based fee: The freelancer charges the client a fixed amount for a specific project. This is usually agreed upon before the work begins and is based on an estimate of the time and effort required to complete the project.

• Retainer fee: The freelancer and client agree on a monthly fee for a certain amount of work. A retainer fee model provides a consistent income for the freelancer and ongoing, on-demand services for the client.

• Per-word or per-page rate: Some freelancers, like writers and editors, charge clients per word or per page.

• Commission: In a commission model, the client pays the freelancer a percentage of the revenue generated by their work. This is common in sales-related freelancing.

• Value-based pricing: In this model, pricing is based on the value the work will bring to the client rather than the time it takes to complete. For example, a freelance software developer who specializes in particularly complex work might charge more than other similarly experienced developers who spend a comparable number of hours doing easier or less crucial work. This requires a clear understanding of the client's business and potential impact of the freelancer's work.

Choosing how to get paid as a freelancer

Freelancers must consider several factors when deciding on the best payment methods to accept from clients to ensure smooth transactions and prompt payments while minimizing any potential fees.

Here are some steps a freelancer can take to determine the best way to accept payments:

• Evaluate the nature of your services and clients: The type of work you do and the clients you serve can help you find your optimal payment method. For example, if you work with local clients, direct bank transfers or peer-to-peer payment networks may be the best choice. On the other hand, if you work with international clients, using a payment processor like Stripe can simplify your payments setup.

• Consider your business structure: If you operate as a sole proprietor, simpler methods like direct bank transfers might be sufficient. However, if you run a larger freelance business and need to pay multiple employees or subcontractors, you might require a more sophisticated payment system, such as those offered by Stripe or a similar service.

• Take into account the size and frequency of payments: If you're working on large projects with substantial but infrequent payments, bank transfers or checks might be suitable, given that these methods can handle larger amounts and the processing time won't be as much of a concern. Up-front deposits of 30%–50% can be common, with staged payments. If you're dealing with small, frequent payments, a method with lower transaction fees like a peer-to-peer network might be a better option.

• Consider ease of use and accessibility for your clients: It's important to choose a payment method that your clients are comfortable with. For example, if your clients are tech-savvy, they might prefer digital payments. However, if they're more traditional, checks or direct bank transfers might make the most sense for them.

• Understand fees: Most payment methods charge some kind of fee. These fees can be flat rates or percentages of the transaction amount. These fees add up over time, so understand the fee structure of your chosen payment method and consider how it will impact your overall earnings.

• Consider security: Choose a payment method that provides good security measures to protect your earnings and your clients' information. Reliable services should have strong encryption and fraud prevention features in place. Stripe’s security adheres to and surpasses the toughest industry security benchmarks, employs encryption for every transaction, and includes expansive fraud detection and prevention measures that are built into its payment solutions.

• Explore integration with other business tools: Some payment methods can integrate with other business tools that you use, like accounting or project management software. This can streamline your administrative tasks and make it easier to manage your business. For instance, Stripe can integrate with a variety of business tools you may already use, from accounting software like QuickBooks to CRM systems like Salesforce.

• Submit invoices: No matter how you choose to get paid, submit an invoice to your client. Invoices are important for freelancers because they provide a clear, professional record of work completed and payment owed. They help ensure timely payment, protect against disputes, and keep financial records organized for recordkeeping and paying taxes.

When choosing a payment method for your freelance work, there’s no obligation to pick only one. It's perfectly acceptable to offer more than one payment option to accommodate various client preferences, as long as you're comfortable with managing different methods. And whatever you choose, be sure to clearly communicate your payment options and terms to your clients up front to avoid any confusion or delays in payment.

How to use Stripe to get paid as a freelancer

Stripe handles transactions from a variety of payment methods and currencies. For freelancers, this agility is particularly useful because it allows them to accommodate a variety of payment structures and methods with different clients, while keeping payments within one unified ecosystem.

Here's how freelancers can use Stripe to get paid:

Setting up a Stripe account: Sign up for a Stripe account. Go to the Stripe website and follow the instructions for creating a new account. You'll need to provide some basic information about yourself and your business, including your business bank account details where Stripe will deposit your payments.

Creating a payment link or checkout: After setting up your account, you can create a payment link or set up a checkout process directly on your website:

• Payment links: This is a simple way to accept payments if you don't have a website or if you're invoicing your clients directly. You can create a payment link for a specific amount and service in your Stripe Dashboard, then send this link to your clients. They can click the link to make a payment using their credit or debit card.

• Checkout on your website: If you have a website, you can use Stripe APIs to integrate a checkout system into your site. This involves some coding, so it might be a good option if you have technical skills or can hire a developer. Stripe Checkout provides a prebuilt, customizable payment page, which simplifies the process.

Processing payments: Once a client makes a payment, Stripe will process the funds and transfer them to your bank account. The standard timing for this transfer is two business days for freelancers in the US. It can vary depending on your country and your specific Stripe account settings.

Invoicing: Stripe also has built-in invoicing capabilities. You can create and send invoices directly from your Stripe Dashboard. Clients can then click a link in the invoice to make a payment.

For freelancers or independent contractors, using Stripe means reliability and flexibility. Whether you're working on your own or running a larger freelance business, Stripe's solutions are designed to grow and adapt with you. Stripe’s range of tools can manage both simple transactions and complex payment processes, making it a smart choice for businesses of all sizes—even if you’re a team of one.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.