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You may be ready to start working at home now. You have your computer set-up, your internet connection, everything in your checklist so you can start working.
During your interview, your prospective client asks you, “So, where do you want me to send the payment?”
Do you have a PayPal account?
Do you have a Payoneer account?
Oh no, Sza, what are these?
This blog post aims to help you look into options to get paid. Your client might ask you to set-up accounts in one of these payment gateways so at least you have a little understanding about them.
Or, perhaps, you can give recommendations if you prefer one over the other.
Word of Warning: The fees and rates of the companies mentioned may change over time so you might want to check their official websites after reading this post.
Why work from home?
The comfort, the pay, the amount of money saved, among a lot of other reasons, is why we choose to work from home.
Whatever your reasons would be, working from home can be the best thing you could ever do for your family.
I’ve been working from home for almost four years now (on and off). Having a family made me realize how important it is to work from home.
I don’t have the business mindset that most moms have. And I envy them, they are amazing. But I know I have skills that I can use. So I decided to make money while taking care of my son.
I have been doing it since I was pregnant with Dreu and I have no regret ever since. And, if you’re planning on getting a home-based job as a mom, what are you waiting for? You should definitely start now. I have a guide here on my blog on how you can start.
How much am I worth?
Your salary would depend on the type of work you’re getting and your market value. Always remember to weigh in your experience when putting a price on yourself.
You can browse through remote job websites and check the hourly or monthly payment of the freelancers on the field. Take note that if you’re a newbie, you have to understand that clients won’t pay as much as they are paying the experienced ones.
They have to invest more time in training compared to those that are already knowledgeable about the process.
Most foreign clients outsource their Virtual Assistant needs here in the Philippines because we are way cheaper than the ones from their country. However, most employers would low ball you and offer you an inhumane salary (that’s what I call it, lol).
Try to meet halfway.
Do not hesitate, and do not stop selling yourself to the client.
They need you, so they have to at least pay you well.
How often will I be paid?
It depends on what you and your client have talked about.
There are different pay frequencies a client can set up.
I prefer monthly payment so I can budget our finances more, while Tee, on the other hand, is being paid bi-weekly.
If you’re a freelancer, you can be paid as soon as the project is done or as soon as you’ve sent your invoice. You can check this blog post for a guide on how to invoice. In this case, you have to be more organized and make sure that everything’s in writing because some clients might rip you off.
Clients can make payments:
- Per project (usually for freelancers as I mentioned)
- Weekly (generally if you’re new to them, they offer to pay weekly to assure you that they’re not a scam)
- Bi-weekly (every two weeks or every 15th/30th depending on your agreement)
What payment schemes do I need to set-up an account with so I can get paid?
There are tons of payment options you and your client can use. Digital payment is the norm now, so it’s not as hard as to how things were being done before.
You will be paid through US Dollars or GB Pounds, depending on where your client is, but usually, it’s USD. So you have to consider the exchange rate of US Dollars and Philippine Peso.
Most payment institutions like Paypal have fixed exchange rates.
These are the major digital payment options work-at-home people use to accept payment for their services:
1. Electronic Bank Transfer
This is a direct deposit that your client can do to send money from his/her bank to your bank account. It can be done through their bank’s app or different financial institutions.
If you work through Upwork, your payment will also be sent to your registered bank account.
So if you don’t have a bank account, now is the best time to set it up.
Some banks like Unionbank Ph offer online applications, so it’s less hassle.
The only downside of accepting payments in bank accounts from outside the country is the turnaround time. Other than that, it’s convenient.
Transfer time: 3-5 business days
Current Exchange Rate: It depends on the current mid-market exchange rate. So it varies.
Fees: Sender will pay the fee
Paypal is the most popular payment method. It’s a global service that moves the payment amount from your client’s credit/debit card to your Paypal account without sharing crucial financial information.
All you have to do in your part is to either link your bank account, Gcash Account, or Paymaya Account to Paypal so you can withdraw the amount sent to you by your client.
Your client will only need your email address to send you payment, so you have nothing to worry about because you won’t be sharing your bank details with them.
The downside of Paypal is that it’s costly. They charge you and your client international fees, plus they have a fixed exchange rate. So don’t celebrate when peso rises against dollars because you won’t be affected.
Current Exchange Rate: 1 USD to 48.7507 PHP
Fees: An international fee of 4.4% + fixed fee per transaction.
Transferwise is one of the new financial institutions that have very cheap fees. Transferwise uses real mid-market exchange rates.
Though the transfer is not instant, most especially for international transfers, you will receive the funds directly to the bank or e-wallet account you’ve registered.
You only need to provide your client your email address so they can send you your payment.
In my case, I registered my Gcash Account. Automatically, all PHP that comes into my Transferwise account will be sent directly to my Gcash account. So, if a client pays me through Transferwise, I will see the balance debited in my Gcash account in 1-2 business days.
Transferwise is available for limited countries, for now, that’s why only a few people use it. Luckily, it is available in the Philippines, and they have partnered with Gcash and Paymay for secure e-wallet transfers.
If you’re used to using other methods like Paypal, you might find the interface a bit difficult to understand.
Transfer Time: 2 days
Current Exchange Rate: 50.8100 Mid-market rate
Fees: Sender will shoulder the fees
Payoneer is also another payment method that other freelancers or home-based workers use.
They provide their own Payoneer Prepaid Mastercard so you can withdraw it from the ATM, or you can have the funds sent directly to your local bank account.
One downside is you cannot withdraw funds from a bank that isn’t associated with them. Also, their customer service is not accessible 24/7.
Here’s a review if you want to learn more about Payoneer: click here.
Transfer time: 2-5 business days
Current Exchange Rate: Payoneer charges a margin of 2% off the midmarket rate.
Fees: Payoneer has different fees depending on the type of transaction.
Skrill is also another payment gateway freelancers, or home-based people use to get paid. Like PayPal and Transferwise, you only need to provide your email address to get paid without providing your bank details to your client.
What most people complain about is that Skrill’s system goes down so many times compared to other payment gateways. Their slow customer service is also a downside.
Transfer time: 3-5 business days
Current Exchange Rate: For transactions involving currency conversion, Skrill adds a fee of 3.99% to wholesale exchange rates. The exchange rates vary and will be applied immediately without notice to you.
While these payment methods are the ones most work at home people use, other freelancers also use Stripe, Venmo, or Paymaya to receive payments.
Who will shoulder the fees?
In the perfect world, employers should be the ones to shoulder the fees; however, in some cases like transferring the funds to your local bank account, these payment gateways, Paypal, among others, charge small fees.
These are some of the ways you can get paid as a work at home mom. The majority of clients use these as payment methods, but you might want to wait also on what your client would prefer.
So what payment method do you use in accepting payments? I’d love to hear more about it, and maybe we can suggest it to our clients too.