How to Pay Freelancers: The 10 Best Ways

Freelancers have become an essential part of the modern workforce. They enable businesses to access top talent on demand, scale quickly, and complete projects without the costs and commitments associated with full-time employees. Whether you need a designer, a writer, a virtual assistant, or a developer, hiring freelancers gives you flexibility and agility that traditional employment models often lack.

But once you’ve found the right freelancer, the next big question is: how do you pay them?

The world of freelance payment methods has undergone significant changes in the last decade. Digital wallets, specialized freelancer platforms, and global transfer services have replaced traditional checks and wire transfers. Each option has its pros and cons depending on your location, your freelancer’s location, the frequency of payments, and whether you need built-in protections.

In this guide, we’ll break down the 10 best ways to pay freelancers, explaining how each method works, what it costs, and when it makes sense to use it. By the end, you’ll have a clear understanding of the best payment option for your business.

1. Checks

Checks may sound old-fashioned, but some U.S.-based businesses still use them. They are inexpensive because you only pay for postage and envelopes, and administrative work is minimal. However, checks have several disadvantages.

First, freelancers often dislike waiting for a check to arrive in the mail, and then for the bank to clear it. This means they may wait several days or even weeks before actually receiving their funds. Second, checks are not always a secure method of payment. They can be lost in the mail, delayed, or even bounce if there are insufficient funds in the account. For freelancers who rely on consistent payments, this unpredictability is frustrating.

👉 In short, checks may still work for very occasional local projects where cost control is essential, but in most cases, businesses and freelancers prefer faster digital alternatives.

2. ACH Transfer

ACH (Automated Clearing House) transfers are a popular way to pay U.S.-based freelancers. The system enables direct transfers from one bank account to another, typically taking two to four business days to complete.

One of the main advantages of ACH transfers is that they are inexpensive. Depending on your bank, fees can range from just $0.50 to about $10 per transfer. On the freelancer’s side, there are usually no fees, making it a cost-effective solution.

The drawback is that ACH only works smoothly within the U.S. or between two U.S. bank accounts. If your freelancer is located overseas, ACH won’t be an option unless they have a U.S. account, which is rare.

For local freelancers, however, ACH is faster and more reliable than checks, offering a good balance between cost and convenience.

3. PayPal

PayPal was once the undisputed leader in digital payments for freelancers. It enabled businesses to pay workers across borders quickly, and freelancers enjoyed the ease of withdrawing money directly into their bank accounts.

Today, PayPal remains widely used, but it has lost some of its appeal because of fees. PayPal typically charges freelancers 2.9% of each payment plus $0.30. Additionally, if currency conversion is involved, an extra 5% may be applied. That can add up quickly, especially for freelancers with large invoices.

Another limitation is availability. PayPal is a global payment service, but it is not supported in every country. Therefore, it is essential to check if your freelancer can actually receive funds through PayPal.

Despite its drawbacks, PayPal is still one of the fastest and easiest ways to send payments — especially if you want to use your credit card or business account to pay. For freelancers who already use PayPal regularly, it’s a convenient choice.

🔗 PayPal’s official fee breakdown can help you calculate total costs before sending payments.

4. Wise (formerly TransferWise)

If you’re paying international freelancers, Wise is one of the best options available today. Unlike PayPal, which adds hidden fees during currency conversion, Wise is transparent. You pay in your own currency, and your freelancer receives the payment in theirs, with fees that are low and easy to understand.

Wise charges around 0.45% per transaction, plus a small fixed fee (typically $6 to $12, depending on the currency). The platform uses the mid-market exchange rate, meaning your freelancer receives a significantly higher amount of the money you send, compared to services that add conversion fees.

Another great feature of Wise is flexibility. You can decide who pays the fees — you, the freelancer, or split between both. This makes it fair and adaptable depending on your arrangement.

For businesses with global teams, Wise is an affordable and secure way to manage payments to freelancers.

5. Credit Card

Using a credit card to pay freelancers can be convenient, especially if you want to track expenses or collect rewards points. However, freelancers cannot usually accept credit card payments directly. Instead, they will need to use a service like PayPal, Square, or Google Wallet to process the payment.

This means both you and the freelancer will incur higher fees compared to direct transfers. It’s also not always the fastest method since the payment goes through multiple layers of processing.

Paying by credit card makes sense if you’re working on a one-time project and want the flexibility of using your existing card system. For regular freelancer payments, though, other options tend to be more cost-effective.

6. Payoneer

Payoneer has become a trusted name in freelancer payments, especially for businesses working with international teams. The platform supports 150 currencies and operates in almost every country, making it highly versatile.

Clients benefit because they can pay freelancers with a credit card, bank transfer, or online wallet. Freelancers benefit because payments are fast, sometimes arriving within two hours. Payoneer also makes it easy to pay multiple freelancers at once — anywhere from five to 200 recipients in one batch.

Transfers are free under certain conditions, such as when transferring between Payoneer accounts in select countries or when using ACH debit. Outside those cases, freelancers may incur a small currency conversion fee (typically around 2% above the mid-market rate).

The main drawback of using Payoneer is the approval process, which can take some time. It’s advisable to apply for a Payoneer account in advance, before you begin hiring freelancers. Ensure you submit your application early to avoid any delays in the hiring process.

7. Hubstaff

Hubstaff is more than just a payment processor. It is a full time-tracking and productivity management platform that integrates payment solutions directly into its system.

With Hubstaff, you can:

• Track the time freelancers spend on specific projects.
• Approve timesheets before releasing payment.
• Automate payroll by setting hourly rates and recurring payment schedules.

What makes Hubstaff unique is that it supports multiple payment providers, including PayPal, Wise, and Payoneer. This gives you flexibility without leaving the Hubstaff platform.

The premium plan costs approximately $10 per user per month (minimum of two users). However, for businesses that rely heavily on freelancers, the ability to manage both time and payments in one place can justify the cost.

8. QuickBooks

For businesses already using QuickBooks for accounting, adding freelancer payroll is a natural step. It allows you to keep all financial records — including freelancer invoices — in one place, thereby simplifying bookkeeping and tax management.

QuickBooks also integrates with Hubstaff, so you can track freelancer hours automatically and link them to payments. Plans with payroll functionality start at around $40 per month, but if you’re already paying for accounting software, this is a logical upgrade.

The advantage of QuickBooks is convenience. You reduce manual work, avoid duplicate records, and streamline tax season by keeping all freelancer payments properly logged.

9. Upwork Direct Contracts

Freelancers and clients seeking payment protection often use Upwork, one of the world’s largest freelance platforms. Traditionally, payments could only be made for work completed through Upwork jobs. However, the platform now offers Direct Contracts, which allow you to pay freelancers outside the platform while still benefiting from escrow protection.

Here’s how it works: the freelancer creates a contract, you deposit funds into escrow, and once the work is approved, you release payment. If disputes arise, Upwork provides mediation.

The service is free for clients, but freelancers pay a 3.4% fee per contract. This makes it a good option if you want security but don’t want to be tied to Upwork’s job board.

10. Wire Transfer

Wire transfers used to be the standard for international freelancer payments, but they’ve largely been replaced by faster, cheaper options.

They remain useful in very specific circumstances, such as sending large sums (usually $5,000 or more). Wire transfers are secure, but they are expensive, with fees that can range from $5 to $50 per transfer, plus small charges for the freelancer.

For smaller or regular freelancer payments, digital platforms are a far better choice.

Payment Methods to Avoid

Not every payment option is safe. If a freelancer requests payment in Bitcoin, gift cards, or products, it’s a warning sign. These methods are untraceable and leave you with no recourse if something goes wrong. Always stick with reputable payment services.

Choosing the Best Way to Pay Freelancers

There is no single best payment method. The right choice depends on your situation. For U.S.-based freelancers, ACH transfers are affordable and reliable. For international teams, Wise or Payoneer may offer the best balance of speed and cost. If you want built-in protections, Upwork Direct Contracts or agency platforms are smart choices. And if you value integrated tools, Hubstaff or QuickBooks can give you more control.

You may even end up using different methods for different freelancers depending on location, project type, and frequency of payment.

Finally, it’s important to remember that how you pay freelancers is only part of the equation. You also need to decide how much to pay them. Rates can vary significantly based on skills, experience, and region. For a deeper look, see our guide: How Much Should You Pay a Virtual Assistant?.