Payment methods is one of the important things you want to consider when you start working at home which you can use to get or withdraw your money. Not just for receiving but can be used for sending and transferring money. By knowing this you can plan ahead and budget your money wisely.
So what are the types of payment methods you can use to get your money?
Payment methods will really depend on:
- The company you are working with
- Place where your client or employer’s location
- Type of work when you make money online
Recommended Payment Platforms which are Made Accessible for Local Freelancers
Available in over 200 countries, PayPal has been the most prominent online payment platform serving overseas clients and Filipino freelancers for many years. When signing up for a PayPal account, all you need to do is to register an account with an active email address. Once you registered an account, just link any existing bank account or any credit/debit card to PayPal, and you may now start making transactions.
With several years of experience, PayPal is probably the best choice among existing online payment modes, not only for business owners but also for freelancers with regard to secure online transactions and quick transfer rates. However, service fees may seem high for international transactions, which require you to cover the expenses for transferring funds from your PayPal to your local bank account.
Payoneer is a popular eCommerce payment platform that allows secure fund transfer, bills payment, and online purchasing with only minimal fees. With this digital payment gateway, you are able to create different global bank accounts that enable you to receive payments from the local bank accounts of your clients. Though this feature has resulted to lower service fees and higher conversion rates, Payoneer only supports a limited number of currencies.
Payoneer lets you transfer funds to your debit card even if you only have $50 in your account, but the transfer may take up to three working days. You also need to pay for its annual card activation due and other applicable charges, such as card replacement and ATM withdrawal fee.
Local bank remittance is a cheaper way to receive or transfer money, but it depends on the current exchange rate and existing charges of the remittance bank source. You would still need to pay some bank charges, but some banks, such as Metrobank and BDO, may waive these fees if there are international branches available in locations where your employer is currently based. You can make use of this money transfer method if you have already established a good working relationship with your client.
4. Job Marketplaces or Freelancer Sites
You may receive payouts from popular online job marketplaces, including onlinejobs.ph, Freelancer.com, and Upwork. Overseas clients find these sites reliable and secure since these job platforms will send their payments back if something inappropriate happens during the course of work, for instance, if the freelancer has failed to deliver the job on time or has committed fraud.
While many clients prefer to look for a potential freelancer from online job marketplaces, there are specific fees to be paid as imposed by these work platforms.
Onlinejobs.ph, for instance, charges clients a flat rate of $49.00, which is good for eight years while Upwork will charge freelancers 20% on their $500 total revenue. Freelancers may receive payments through a built-in payment system of the job platform or preferred payment gateway agreed upon by both parties.
5. International Money Transfer Service
Filipino freelancers find it convenient to receive money through international remittance services, particularly if they are paid in huge amount of money, and they need some quick cash. This method of receiving money seems straightforward since there’s no need to create an online account, though recipients may need to fill up some data forms from local remittance centers for verification and record-keeping purposes.
Examples of global remittance service companies include MoneyGram International, Wells Fargo, WorldRemit, TransferWise, and Western Union. You can find a lot of local branches of these money transfer services in the Philippines, making it easy for you to get paid on time.
6. Electronic Fund Transfer
Electronic money transfer is the most convenient and cheapest way to get paid, especially if you are only receiving money from local clients.
Freelancers are paid by directly transferring funds from the bank account of the client, whether international or domestic banks, to their bank account. Unlike local clients, however, most foreign clients prefer to send money using just one payment platform to avoid those expensive service fees and low conversion rates. International fund transfer may take a few business days to get credited to your account, while local fund transfer lets you receive the money real time.
7. PAYMENT Collection Apps
Apart from international money transfer services, you may also opt to receive money from local payment collection brands or mobile E-wallet systems, such as GCash, TrueMoney, Smart Money, PayMaya, 7-Eleven Cliqq Rewards, and Coins.ph among others. Some may also offer you a Mastercard debit card or Visa Card which will allow salary withdrawal from an ATM anywhere in the Philippines. You may use the card for online purchases, electronic loading, bills payment, and other online transactions.
Philippine Banks that can be Linked to PayPal
If you have been working as an online freelancer or receiving money from foreign clients, you might have received your salary with a PayPal account. However, you are required to link your local bank account to PayPal in order to receive your payout in Philippine currency. Registered PayPal users need to encode the appropriate PayPal bank code, known as the Bank Routing Symbol Transit Number (BRSTN), assigned to every bank in the Philippines before they can convert and transfer their money.
The Bank Routing Symbol Transit Number (BRSTN) is a 9-digit code that corresponds to the name, city, and country of any bank in the world, which is used as an official code to identify a specific Philippine bank. You are required to enter the BRSTN when you connect your PayPal account to your local bank. However, PayPal will automatically fill up the bank code upon selecting your bank in the Philippines.
To add your local bank account, go to Wallet tab and just click “Link a bank account,” and fill up the following details:
- Country of the bank
- Company name associated with the bank account
- Name of the bank
- PayPal bank code
- Account number
All information you have entered should be correct, otherwise, PayPal will charge you Php 250.00 for withdrawing your money with invalid bank details.
The list of Philippine Banks in random order which you can link to PayPal includes:
- Banco de Oro
- Bank of Philippine Islands
- Metropolitan Bank and Trust Corporation (Metrobank)
- Security Bank
- Unionbank of the Philippines (EON Cyber and EON Digital Me)
- Asia United Bank
- Allied Banking Corporation
- Australia New Zealand Bank
- Bangko Sentral ng Pilipinas
- Bank of America
- Bank of Commerce
- China Banking Corporation (Chinabank)
- East West Bank
- China Trust Commercial Bank
- Citibank Philippines
- JP Morgan Chase Bank
- Development Bank in the Philippines (DBP)
- Deutsche Bank
- Export and Industry Bank
- International Bank of China
- Hongkong and Shanghai Banking Corporation (HSBC)
- Korea Exchange Bank
- United Coconut Planters Bank (UCPB)
- Rizal Commercial Banking Corporation (RCBC)
- Phil Trust Company
- Land Bank of the Philippines
- Philippine National Bank (PNB)
- Philippine Bank of Communication (PBCom)
- Philippine Savings Bank (PSBank)
- Standard Chartered Bank
- Prudential Bank
- Philippine Veterans Bank
The Dollar-to-Peso exchange rate continues to become stable at the moment, but PayPal services fees continue to rise further. This is why clients are thinking of switching to other reliable payment options to keep their overhead expenses low.
With regard to which PayPal alternative to using, most employers care about the amount of service fees to pay and ease of navigating the payment platform. For freelancers, on the other hand, they often look for a better payment method, which has a higher conversion rate, lower fees and faster processing time. Below are some of the suggested PayPal alternatives which can be used to receive money from overseas clients:
1. Western Union
Western Union is a well-known PayPal alternative in which you can receive the money within a few hours after your salary has been deposited. You will receive your cash instantly once you present a valid identification card.
The exchange rate seems better than other money transfer options, but different conversion rates are being enforced on every local branch. You also need to present a valid ID that matches their record before they release your cash.
Skrill performs almost similar to PayPal and has better conversion rates. However, it does not allow users to make online purchases. This PayPal alternative supports a huge number of foreign currencies while making payment transactions and fund transferring seamless.
TransferWise is a suitable alternative to PayPal because you get the exact conversion rate you see from Google. When using a TransferWise account, you won’t be charged with international service fees or high exchange rates, unlike conventional bank accounts. A conversion fee of 0.35% to 2.5% will be charged to your Mastercard when you withdraw in an ATM.
With this alternative platform, you can receive, send, or even convert different currencies in one virtual account, though fund transfer will take one to two business days. Your TransferWise Debit Mastercard also allows you to make online purchases or send money to another bank account.
Xoom is a fast-rising alternative payment portal to PayPal that lets you receive the money as short as 10 minutes as long as you have the reference or tracking number sent to you via email. You can get your money through its partner local banks and remittance centers in the Philippines.
5. Google Pay
Google Pay service can be incorporated with different websites, mobile apps, and shopping sites. You can use Google Pay to transfer funds to your local bank account or make online purchases using a credit/debit card. The withdrawal period may take up to three business days, though there’s no debit card or transfer fee to be charged.
Remitly is one of the most flexible online money transfer facilities available as an alternative to PayPal, which has two transfer options. “Express” transfers let you receive the money real time, though you have to pay $3.90 for this service while “Economy” transfers may take four to five days with no service fee. When your money has been credited to your bank, Remitry will send you a text message or an email notification.
Receiving your hard-earned money has become a lot easier because of these advanced payment methods spurring out on the market these days. Choosing the appropriate payment platform among the listed above would still depend on the agreement that will work comfortably between you and your client.
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GCash has been fairly reliable during the past years. This 2019, there were issues like people receiving a lot of updates, delayed money transferred, and other basic issues that are not really alarming.
Although this is a great opportunity for VA’s to have a little boost when receiving our money but the common concerns with both parties are— which reliable PayPal alternative payment method to use?