Cheapest Way to Pay Freelancers Overseas
Is this a comprehensive list of the cheapest ways to pay freelancers overseas online? No it is not. We only focus on the very cheapest ways to pay freelancers overseas. There are a great many exchange and transfer companies available, and in many cases your best option is to shop around for the best price. However, the only fair way to shop around is to actually try each company and see which one gives you the best deal on a dollar-by-dollar basis. Only once the exchange and transfer is complete will you know the true cost of your exchange and transfer by working how much you sent and working out how much your recipient received. We offer you a list of the best transfer companies, and we suggest other cheap (but reliable) methods for paying freelancers overseas.
Is PayPal The Cheapest Way to Pay Freelancers Overseas Online?
If you are the one paying the freelancer, then PayPal is the cheapest way to pay freelancers overseas. It is the recipient who is charged a receiving fee, and it is the recipient who has to do any currency converting. As a sender, there are no fees to pay. The fees that the recipient pays are rather small, but on the plus side, the recipient only pays fees for receiving and nothing else.
Reasons Why You Should Consider PayPal
- If you are the sender, then there is no fee for using PayPal.
- There are also no maintenance fees or dormancy fees.
- You may use the “Friends and Family” sending method so your recipient may avoid fees.
- PayPal is one of the most trusted names in the money-transfer industry.
- The PayPal system is highly encrypted and one of the safest money moving systems in the world.
- There is plenty of sender and recipient protection, which also includes a resolution center.
- Transfers often happen within minutes, and your recipient should be able to withdraw within minutes.
- You only need the recipient’s email address in order to send money.
- There is no fee for uploading, sending or withdrawing.
- If you are buying, or the recipient sends an invoice, then you don’t even need to upload funds in order to pay because they are debited directly from your bank account.
Reasons Why You Should Not Consider PayPal
- If you are the recipient, then you have to pay a fee unless the “Friends and family” method is used. However, if you use the “Friends and family” method, then you may not apply for charge backs if it turns out your recipient is pulling a con.
- The currency conversion rate is pretty poor. They will skim around two percent from your rate. This only applies if you are the one doing the converting. Simply send your own currency to your recipient and have your recipient do the converting.
- Some people in the East or Middle-East will not accept PayPal payments because they worry that you will create charge-backs that they cannot win. They may prefer that you pay with a company such as Skrill where sender protections are not in place.
Is Transferwise The Cheapest Way to Pay Freelancers Overseas Online?
When it comes to honesty and transparency during a currency transfer, then Transferwise is one of the leaders in the field. There are no nasty surprises when you use Transferwise, and on a dollar-for-dollar basis it is one of the best money exchange and transfer companies when you are looking for the cheapest way to pay freelancers overseas. It is especially good for planning your exchanges and transfers because the numbers you see on the transfer tool are exactly what is paid and exactly what is received. If you are looking to plan your transfers, make efficient transfers, and pay the market rate for your exchanges, then Transferwise is the company for you.
Reasons Why You Should Consider Transferwise
- Transferwise uses the market rate when it exchanges your money. The rate you see on Google is the rate you pay.
- The company is very transparent with regards to money transfers and exchanges, which makes Transferwise a great exchange planning tool.
- Transferwise has a free alerts system that doesn’t require a registration. You get daily emails whenever your currency price changes.
- The Transferwise system is very fast and is built on an encrypted network which makes it harder for hackers to intercept your money.
- If you compare how much you send and how much is received with other companies, you will see that Transferwise offers the best value for money on a dollar-for-dollar basis.
- The loss to yourself as a sender is minimal, and the Transferwise system doesn’t punish you for making larger exchanges and transfers.
- There are no fees for having an account, there are no dormancy fees or maintenance fees.
- Unlike PayPal, they are not going to skim money from your rate
Reasons Why You Should Not Consider Transferwise
- Transferwise is not internationally well known, which means your recipient may be apprehensive about using the system.
- Signing up and getting an account is easy, but you will have to be verified if you wish to send large amounts of money through the Transferwise system.
- There are some countries where a transfer will take days rather than hours. You should consider other money-transfer companies for those countries.
- The fee structure punishes people for sending very small payments, whereas something such as PayPal wouldn’t if you sent it via the “Friends and family” payment method.
Is Bitcoin The Cheapest Way to Pay Freelancers Overseas Online?
If you are sending very small amounts such as $20, then sending it via bitcoin may not be worth it. No matter which cryptocurrency you use, you will have to pay a fee to convert your dollars and then pay a fee to send the money. Your recipient will then have to pay a fee to convert the cryptocurrency back to his or her regular currency. Nevertheless, even small payments of $20 have small fees attached to them, but it is often more cost-effective to send larger amounts via bitcoin.
Reasons Why You Should Consider Bitcoin
- You may send very large or very small amounts for very small fees.
- Transfer times are often an hour or two in many cases.
- There are plenty of different cryptocurrencies to choose from.
- You are able to pay people in any country.
- Some people stockpile cryptocurrency and only use it when it is up in value.
- There are some cryptocurrencies such as Verge that allow you to send ny anonymously.
- You or your recipient doesn’t have to trust a bank with the transfer.
- The currency is moved thanks to the network and not thinks to a specific third party.
- Losses are very rare if the sender and recipient knows all about security.
Reasons Why You Should Not Consider Bitcoin
- Converting your currency into bitcoin and then bank again can be a pain in the ass.
- Some exchanges have horribly long verification processes.
- Only exchanges such as Virwox allow you to use PayPal and remain anonymous.
- Sending offers very little protection. If the recipient claims it didn’t arrive, there is little you can do to fight your case.
- You have to be very security conscious if you are going to start sending cryptocurrency payments on a regular basis.
- Some cryptocurrencies such as Verge (XVG) and Mintcoin (MINT) will be around forever, whereas coins such as DodgeCoin will probably die off some day soon.
- Having to learn about cryptocurrency, how to store it, how to send it, and so forth can be a grueling and ugly experience.
- It is very difficult learning how to trust exchanges and finding exchanges that you can trust with your personal information.
Is CurrencyFair The Cheapest Way to Pay Freelancers Overseas Online?
CurrencyFair is a lot like Transferwise in that it is one of a tiny minority of transfer companies that is completely transparent in its dealings. There are many ways that an exchange and transfer company may deceive customers in a very legal (albeit immoral) way. CurrencyFair is not one of those companies. In other words, it doesn’t mind showing you the ugly truth of your transaction. Let’s face it, if exchange and transfer companies could not deceive people, then only the top three cheapest would be in business. CurrencyFair gives you a full view of what you are going to pay prior to you paying it.
Reasons Why You Should Consider CurrencyFair
- You get to see exactly how much you are uploading and exactly how much your recipient will receive.
- There are no nasty surprises at the end of your transaction, such as processing fees or sales taxes and such.
- The fees are tiny, and the honest exchange rate means you get good dollar-for-dollar value when compared to other exchange and transfer companies.
- Just like with Transferwise, there is an app that you may use for quicker transfers.
- If you are transferring abroad and you are exchanging your currency for another, then you will make savings on your exchanges.
- Many transfers take just a few hours and some will only take one business day to reach their destination.
Reasons Why You Should Not Consider CurrencyFair
- If you are transferring abroad but you are not exchanging your currency, then consider using a different transfer method.
- CurrencyFair is not as well-known as companies such as MoneyGram and Western Union, which means some people may be unwilling to use it.
- Unlike with PayPal, you are limited to a smaller range of currencies that you may withdraw with.
- Despite the fact that most transfers arrive in just two hours, there are some countries where it takes up to four working days to arrive.
- Just like with Transferwise, if you are getting verified to enable you to send larger amounts, then the process can become a pain in the arse.
Is A Bank Transfer The Cheapest Way to Pay Freelancers Overseas Online?
In most cases, a bank transfer is not going to be your cheapest option. However, it is not an option you should rule out. Firstly, there may be circumstances where a bank transfer is your only option, but do not be misled by the person you are sending money to. For example, if your recipient says he or she wants paying into his or her bank account, it doesn’t mean you have you send the payment via a bank transfer from your bank.
Secondly, there are some bank accounts that are custom designed for international money transfers. You will probably have to set up a designated account for which you pay a subscription, but it may work out cheaper than your alternatives if you happen to send large amounts of money on a regular basis, or if you frequently deal with the same currency conversion over and over again.
Reasons Why You Should Consider A Bank Transfer
- A bank transfer may be your most convenient method of international money transfer.
- Your bank may be the only option for you if you are transferring to a certain country.
- Your bank and/or you bank’s multi-currency account may offer cheaper rates than online transfer companies.
- Online exchange and transfer companies may be unwilling to send and exchange the amounts you wish to exchange and send.
- Banks tend to have better security than online transfer companies.
- You may get a better rate from your bank because your recipient in another country banks with the same bank as you.
- Some banks are able to beat the exchange and transfer times of some online exchange and transfer companies. This is especially true if the recipient uses the same bank as the sender.
Reasons Why You Should Not Consider A Bank Transfer
- The added security and convenience that comes with sending money via your bank will often come with a compromise, such as poor exchange rates or higher fees.
- A bank is just as likely to hide its fees and legally deceive a customers as an online transfer company.
- Banks often charge a maintenance/monthly fee for things such as multi-currency accounts. They may also ask you to sign up for one of their premium accounts if they know you wish to conduct numerous transfers.
- The act of setting up your overseas transfers often takes minutes longer than when you use “some” online transfer companies.
- Some banks use ACH transfers to pass the money into their international network (or they are using a third-party company). This sometimes results in certain banks taking an average of one working day longer to exchange and send money than a typical online exchange and transfer company.