Getting paid shouldn’t be complicated.
Payment processing lets clients pay you via credit card, bank transfer, or digital wallets. Instead of negotiating wire transfers or waiting for checks, money hits your account in 1-3 days.
Here are the best payment processors for freelancers.
Bottom Line: Use Stripe if you want the lowest fees and most integrations. Use PayPal if you want simplicity. Use Square if you want to accept in-person payments too.
Why Freelancers Need Payment Processing
When you accept only bank transfers or checks, clients delay paying you. “We process payments on Fridays” = you wait 5 extra days.
When you accept credit cards, clients pay immediately. They get an invoice with a “pay now” button, click it, and the money hits your account in 24 hours.
Payment processors also handle currency conversion (if you work with international clients), subscriptions, and dispute resolution.
Best Fees: Stripe
Stripe charges 2.9% + $0.30 per transaction for card payments. If a client pays you $1,000, you get $970.
That’s low compared to PayPal (3.49% + $0.49) and Square (2.9% + $0.30… actually the same as Stripe).
Stripe’s advantage is integrations. It connects to Wave, FreshBooks, Asana, Zapier, and 1000s of other tools. If you invoice in Wave, you can click “enable Stripe” and clients pay directly from the invoice link.
Who it’s for: Freelancers who invoice via Wave or FreshBooks. Stripe integrates so smoothly that it feels built-in.
The downside: Stripe’s dashboard is powerful but cluttered. If you just want to accept payments and move on, Stripe is overkill. Also, Stripe doesn’t offer in-person payments without a separate product (Stripe Terminal).
Pricing: 2.9% + $0.30 per transaction.
Simplest: PayPal
PayPal is the “everyone has it” payment processor. You send a client a PayPal.Me link (“pay me $3k at paypal.me/yourname”), they click it, and they pay.
PayPal is recognizable. Clients trust it. There’s no setup beyond opening an account.
The downside: PayPal’s fees are higher (3.49% + $0.49). And PayPal freezes accounts occasionally (without explanation), which is terrifying if that money is your rent.
Pricing: 3.49% + $0.49 per transaction.
Best for In-Person: Square
Square is built for in-person payments. You swipe a card reader or have a client tap their phone. Money hits your account next day.
If you do any in-person work (consulting calls where clients want to pay, selling digital products at events), Square’s card reader is the easiest option.
The downside: Square’s online payments don’t integrate as well as Stripe. And if you’re 100% remote, you don’t need Square.
Pricing: 2.9% + $0.30 per transaction (same as Stripe).
Stripe vs. PayPal
Stripe has lower fees, better integrations, and it feels like it’s built-in to your invoicing software.
PayPal is simpler and everyone recognizes it.
Use Stripe if: You use Wave, FreshBooks, or any invoicing software. The integration saves time.
Use PayPal if: You want absolute simplicity and your clients are comfortable with PayPal.
FAQ
Q: What’s the difference between payment processing and invoicing? Invoicing is sending a bill. Payment processing is accepting the payment. You can invoice in Wave (free) and use Stripe (2.9%) to collect.
Q: How long does money take to hit my account? Usually 1-3 days. Some processors (PayPal) take up to 5 days.
Q: Can I accept payments without a business account? Yes, most processors work with sole proprietors. You need a Social Security Number and business name (even if it’s just your name).
Q: Do I have to use a payment processor? No, but you should. Bank transfers only work if clients initiate them and remembering to invoice is your job. Payment processors automate it.
Conclusion
Use Stripe if you invoice digitally. Use PayPal if simplicity is everything.
Start Stripe or sign up PayPal.
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