Getting Paid: The Complete Guide for Freelancers & Contractors

For freelancers and contractors, getting paid on time is more than just a business goal—it’s a matter of survival. Between managing clients, delivering projects, and handling invoices, ensuring timely payment can be a challenge.

In this complete guide, you’ll learn the most reliable ways to accept payments, the pros and cons of different methods, how to protect yourself from scams, and the key terms every freelancer should include in their contracts.

Accepting Payments from Clients

The foundation of getting paid reliably starts with offering your clients multiple convenient payment options. According to Wave’s payment research, customers who enable online payments get paid 3 times faster than those who rely on cash or check payments.

Here’s a comprehensive comparison of the most popular payment methods for freelancers and contractors:

Your payment acceptance strategy should balance convenience for clients with cost-effectiveness for your business. Consider your client base, project sizes, and cash flow needs when selecting which payment methods to offer.

Early in your client relationship, discuss preferred payment methods and establish clear expectations. This conversation prevents payment delays and demonstrates your professionalism from the start.

Ready to streamline your payment process? Try Invoice Fly’s Invoicing Software to create professional invoices with integrated payment options. It’s free and built specifically for freelancers and contractors.

Accepting Payments Online

Online payments have become the standard for most freelance work. They offer speed and convenience that traditional methods can’t match. According to Stripe’s, there were 76.4 million freelance workers in the United States in 2024, with that number expected to reach 90.1 million by 2028.

Online payment platforms integrate seamlessly with invoicing software, automatically updating your records when payments arrive. This integration eliminates manual bookkeeping and reduces errors that can complicate tax preparation.

Digital payments also provide better documentation for your freelance business. Electronic transaction records are easier to organize and access during tax season, making it simpler to track income and deductible business expenses.

Credit and Debit Cards

Credit and debit cards remain one of the most popular payment methods for freelance clients, offering widespread acceptance and familiar user experiences that both freelancers and clients appreciate.

Benefits of Accepting Debit and Credit Cards

Speed and Convenience: Card payments process quickly, typically depositing funds in your account within 1-3 business days. Clients can pay immediately upon receiving your invoice, eliminating the delays associated with check processing.

Global Accessibility: Credit cards work internationally, making them ideal for freelancers serving clients worldwide. Currency conversion happens automatically through your payment processor.

Professional Image: Accepting cards signals legitimacy and professionalism to potential clients. Many businesses expect service providers to offer card payment options.

Automatic Record Keeping: Card processors provide detailed transaction records, simplifying bookkeeping and tax preparation for your freelance business.

Cons

Processing Fees: According to Corporate Finance Institute, Card payments typically cost 2.9% plus $0.30 per transaction. For a $1,000 invoice, you’ll pay approximately $29.30 in fees—a significant expense that adds up over time.

Chargeback Risk: Clients can dispute card charges, potentially reversing completed payments. While rare, chargebacks can create cash flow disruptions and require time to resolve.

Account Holds: Payment processors may hold funds for new accounts or high-risk industries, delaying access to your money when you need it most.

Bank Payments: Wire Transfers, eChecks, and ACH Processing

Direct bank transfers offer an alternative to card payments, particularly for larger invoices where processing fees become substantial. ACH (Automated Clearing House) transfers are increasingly popular among freelancers working with corporate clients.

Benefits of Accepting Bank Transfers

Lower Fees: ACH transfers typically cost $0.50-$1.50 per transaction, regardless of amount. For invoices over $100, bank transfers are more cost-effective than credit cards.

Higher Transaction Limits: Unlike cards, which may have spending limits, bank transfers can handle large payments without restrictions—ideal for high-value freelance projects.

Reduced Chargeback Risk: Bank transfers are harder to reverse than card payments, providing more security for your business once funds are deposited.

Corporate Preference: Many large companies prefer ACH payments for vendor payments, as they integrate with existing accounting systems.

Cons

Slower Processing: Bank transfers can take 3-5 business days to complete, compared to 1-2 days for card payments. This delay can impact cash flow for freelancers with immediate expenses.

Setup Complexity: Some clients find bank transfers more complicated than card payments, potentially creating friction in the payment process.

International Limitations: Wire transfers for international payments can be expensive ($15-$50 per transaction) and slow, making them impractical for many global freelance relationships.

Choosing a Payment Processor

Selecting the right payment processor affects your costs, cash flow, and client experience. Popular options include PayPal, Stripe, Square, and specialized freelancer platforms.

PayPal offers broad acceptance and easy international payments but charges higher fees for some transaction types. Their buyer protection can sometimes favor clients in disputes.

Stripe provides developer-friendly integration and competitive rates (2.9% + $0.30) but requires more technical setup than consumer-focused alternatives.

Square works well for service businesses with both online and in-person clients, offering consistent pricing across payment types.

When evaluating processors, consider transaction fees, deposit timing, international capabilities, and integration with your existing invoicing workflow. The cheapest option isn’t always the best if it complicates your payment process.

Accepting Cash and Check Payments

While digital payments dominate modern freelancing, some situations still call for traditional payment methods.

Cash

Cash payments offer immediacy but come with significant limitations for most freelance work.

Benefits of Accepting Cash

Instant Payment: No waiting for funds to clear or process—cash provides immediate access to your money.

No Processing Fees: Unlike digital payments, cash doesn’t incur transaction costs, maximizing your income from each project.

Privacy: Cash transactions don’t create digital records, offering privacy for both parties (though you must still report income for tax purposes).

Cons

Limited Practicality: Cash only works for local, in-person services. Remote freelancers can’t realistically accept cash payments.

Security Risks: Carrying large amounts of cash poses theft risks and complicates banking deposits.

Record Keeping: Cash requires manual documentation for tax purposes, increasing bookkeeping complexity.

When It Makes Sense

Cash works best for local service providers like tutors, consultants meeting clients in person, or freelancers providing on-site services. Most digital freelancers should focus on electronic payment methods.

Checks

Personal and business checks still have a place in certain freelance relationships, particularly with established corporate clients.

Benefits of Accepting Checks

No Processing Fees: Like cash, checks don’t incur transaction costs, preserving your full payment amount.

Corporate Preference: Some large companies prefer check payments due to internal accounting procedures and established vendor payment systems.

Payment Documentation: Canceled checks provide clear payment records for both parties, useful for contract disputes or tax purposes.

Cons

Slow Processing: Checks can take 5-10 business days to clear, significantly impacting cash flow compared to electronic alternatives.

Bounce Risk: Insufficient funds can cause checks to bounce, leaving you unpaid and potentially charged bank fees.

Manual Handling: Checks require physical deposit at banks or through mobile apps, adding administrative work to your payment process.

When It Makes Sense

Consider accepting checks from established corporate clients with reliable payment histories, particularly for larger invoices where processing fees would be substantial. New clients should generally pay through more secure electronic methods.

Mobile Payments

Mobile payment apps like Venmo, Zelle, and Cash App have gained popularity for small transactions, but they present both opportunities and challenges for professional freelancers.

These platforms excel at convenience. Their clients can pay instantly from their smartphones without entering card information or navigating payment portals. However, most mobile apps lack professional features like automated invoicing or detailed transaction records.

Mobile payments work best for small, informal projects with trusted clients. For larger amounts or new client relationships, traditional payment processors offer better protection and documentation.

Some freelancers use mobile apps for deposits or partial payments while directing final payments through more robust business platforms such as PayPal Business, Stripe, or Quickbooks.

Payment Security Concerns

Protecting your business and clients from payment fraud requires understanding common security risks and implementing appropriate safeguards.

Data Protection: Never store client payment information on your personal devices or in unsecured documents. Use PCI-compliant payment processors that handle sensitive data securely.

Fraud Prevention: Be cautious of unusually large payments from new clients, especially if they request refunds or changes after payment. Legitimate clients rarely overpay accidentally.

Secure Communications: Avoid discussing payment details over unsecured email or messaging apps. Use encrypted communication tools for sensitive financial information.

Regular security audits of your payment systems help identify vulnerabilities before they become problems. Consider cyber liability insurance to protect against data breaches or payment fraud.

Being Flexible About Payment Methods

Offering multiple payment options increases your chances of getting paid quickly and attracts a broader client base. Different clients have varying preferences based on their business size, industry, and internal processes.

Small businesses and startups often prefer credit cards for the flexibility and cash flow benefits. Larger corporations typically use ACH transfers ( or checks due to established accounting procedures and approval processes.

International clients may prefer PayPal or other globally accessible platforms, while local clients might appreciate options like Zelle or even cash for smaller projects.

Flexibility doesn’t mean accepting every possible payment method. Focus on 2-3 options that serve your primary client base while minimizing costs and complexity.

Important Things to Consider About Getting Paid

Beyond choosing payment methods, several critical factors determine your success in getting paid consistently and on time.

Kill Fees

Kill fees protect your income when projects get canceled after you’ve begun work. Include clauses specifying payment percentages based on project completion stages.

A typical kill fee structure might specify 25% payment if canceled before initial concepts, 50% after first draft approval, and 75% after revisions begin. This protects your time investment regardless of client decisions.

Payment Terms

Clear payment terms prevent misunderstandings and provide legal protection. Specify due dates (Net 15, Net 30), accepted methods, and late fee structures in every contract.

Consider shorter payment terms for new clients. Net 15 or even immediate payment helps establish trust and improves cash flow. Established clients may accept longer terms as the relationship develops.

Learn more about optimizing your payment timing in our guide on when to send invoices to maximize collection rates.

The Invoice

Professional invoicing significantly impacts payment speed and client perception. Include detailed descriptions, clear payment instructions, and professional branding to encourage prompt payment.

Modern invoicing software streamlines this process while providing payment tracking and automated reminders. Avoid common invoicing mistakes that delay payments or create client confusion. 

For accurate project pricing, use our service price calculator to ensure your invoices reflect fair market rates.

Get a Deposit

Deposits protect against non-payment and demonstrate client commitment. Request 25-50% upfront for new clients or large projects, with the balance due upon completion.

Some freelancers structure deposits as project milestones, collecting payments throughout the work process rather than waiting until project completion.

Retainers

Monthly retainers provide predictable income and eliminate invoice collection hassles. Clients pay a fixed amount monthly for ongoing services, similar to subscription billing.

Retainer arrangements work particularly well for ongoing services like content creation, social media management, or consulting relationships.

Don’t Work Unless You’re Paid

Establish and maintain firm boundaries around payment. Stop work immediately if payments become overdue, and don’t resume until accounts are current.

This policy protects your cash flow and signals to clients that your payment terms are non-negotiable. Learn effective strategies for following up on unpaid invoices without damaging client relationships.

And remember, once paid, all freelance income, whether paid via PayPal, ACH, or cash, must be reported for taxes according to the IRS self-employment guidelines.

Sign a Contract

Written contracts protect both parties and provide legal recourse for payment disputes. Include detailed payment terms, project scope, and cancellation clauses in every client agreement.

Contracts don’t have to be complex! Simple service agreements covering payment terms, deliverables, and timelines provide essential protection for your freelance business.

Final Thoughts

Getting paid consistently requires systematic approaches to payment processing, clear communication with clients, and professional business practices. The methods and strategies outlined in this guide provide a foundation for building sustainable freelance income.

Remember that payment issues often reflect broader business practices. Freelancers who maintain professional standards, communicate clearly, and establish firm boundaries typically experience fewer payment problems.

Technology can streamline much of the payment process, from automated invoicing to integrated payment processing. Consider which invoice apps best serve your business needs and client preferences.

Need an invoicing solution for your small business? Try Invoice Fly’s Invoicing Software—it’s free and designed specifically for freelancers and contractors who want to get paid faster!