Are you having trouble finding the right payment method for your remote team members?
We’ve listed a number of payment methods that you can choose from:
Let’s dive in!
PayPal
If you’re looking for popular online payment options in the Philippines, PayPal might be just the ticket. It’s a trusted online payment platform that many freelancers prefer.
The current fees for PayPal Payments Pro are 2.9% + $0.30 per transaction for US transactions. For international transactions, the fees are 4.4% + a fixed fee that varies depending on the location. To cut down on fees, you can choose the “send to a friend” option.
Pros
- Most freelancers trust this platform for payments
- Payments are transmitted to the recipient within seconds
- Allows direct integration with your bank account
Cons
- The conversion rate is too low compared to the regular currency exchange rates. For instance, here’s the market exchange rate compared to PayPal’s on February 27th:
Wise (Formerly known as TransferWise)
Wise is a really convenient way to pay freelancers because it sends payments instantly. All they need is a bank account and a valid ID to receive money through transfers. Just make sure they have an online bank account so they can easily check if the payment has gone through.
Pros
- Wise offers lower fees compared to many traditional banks and money transfer services
- You can conveniently transfer money anytime and anywhere through TransferWise’s user-friendly website and mobile app
- Offers real-time exchange rates that are updated to guarantee that you receive the best possible rate. Here’s a quick comparison of Wise’s exchange rate compared to the market:
Cons
- It may not be available in some countries, so you can’t use it if it’s not available in your freelancer’s location
- Has limits on the amount of money you can send, which may not be enough for bigger transfers
- Too many people are using it at the same time, which is causing delays in transfers
Payoneer
Have you heard of Payoneer? It’s a popular payment option for online freelancers that is getting more attention lately. Freelancers can use it to send invoices and you can pay them directly, similar to PayPal.
If you want to send batch payments to up to 200 bank accounts, the fee is only 2%, and sending payments from your Payoneer account ranges from 0% to 2%. But if you use the Payoneer MasterCard, keep in mind there’s a 3.5% conversion fee.
Pros
- It is available in more than 200 countries and supports over 150 currencies, making it a convenient option for people sending money across borders
- Payoneer offers competitive fees for international money transfers, especially for larger transactions
- Offer multiple payment options, including bank transfers, prepaid Mastercard debit cards, and local e-wallets, providing flexibility for both senders and recipients
Cons
- Exchange rates may not always be the most competitive, which can make it less suitable for smaller transactions
- The verification process for Payoneer can take several days, which can be inconvenient for users who need to make a transfer quickly
- Customer support is not always readily available.
Skrill
Here’s another payment platform that lets you send money across different countries. One of the good things when using Skrill is that their transaction fees are cheap.
When sending money internationally, Skrill wallet fees can differ based on the payment method and currency you use. For example, bank transfers are usually free, but using a debit card or Paysafe Cash transfers can cost up to 1% of the transaction amount. Credit card transfers can cost up to 2.99%, and for transfers in the same currency, the fee can be up to 4.99% per transaction. It’s important to consider these fees when choosing a method to send your payments to your virtual assistants in the Philippines.
Pros
- Competitive fees for international money transfers, especially for larger transactions
- Multiple Payment Options such as bank transfers, debit cards, credit cards, and local payment methods
- Transfers are usually completed within a few hours to a day, depending on the currency and the receiving bank
Cons
- Skrill charges an account maintenance fee after 12 months of inactivity, and fees for certain services like currency conversion and ATM withdrawals
- Slow and complicated interface
- Poor exchange rates
Western Union
To send money via Western Union, you can either do it online or visit one of their branches. Just fill out a form with your name, address, the amount you’re sending, and your preferred payment method. Additionally, you’ll need to provide the recipient’s full name, address, and contact details.
You’ll have various options for Western Union payments and you can choose how fast you want it to be wired. However, it’s essential to keep in mind that there’s a fee of approximately 10% of the amount you’re sending.
Pros
- Recipients can get their payment within minutes of a successful transfer
- You can initiate a transfer online, through the app, on the phone, or in person
- Debit and credit card transfers can reach the recipient in just 1-2 business days
Cons
- Western Union is one of the most expensive options for online money transfers
- The least expensive option, bank-to-bank transfer, takes the longest to get to the recipient
- Western Union’s customer support is not known to be the best
Selecting an appropriate payment method for your virtual team is essential. To make an informed decision, several factors need consideration, such as transaction fees, transfer speed, convenience, and security. By evaluating these aspects, you can confidently choose a payment method that suits your requirements and ensures the safety and satisfaction of your team.
