How To Receive Payment as a Freelance Translator?

A problem most freelance translators are facing with is how to receive payment. In particular: How to receive payment for small jobs. Many translation agencies are reluctant to pay small fees via wire transfer due to the transaction fees; often they will send you a check instead. And I suppose I don't have to tell you: The banks charge an enormous commission when you come and want to cash in your check.

Then along came PayPal ?

Basically PayPal lets you send and receive payment over the Internet. It bases its service on the existing bank and credit card networks, but it is not a bank in itself.

Registering is free; all you need is an email address. Sending money is free - receiving money however, is not. You pay 3.4 % of the received amount unless you are receiving dollars; in this case you pay 2.9 % of the received amount. Then you have to pay a flat fee for each transaction: 0.35 Euros or 0.30 Dollars. In addition you have to pay a cross boarder fee of 0.5 % - 1.0 % if you receive payment from someone located in another country.

Then you have to pay a small fee when you withdraw your money to your regular bank account. (Unless your bank is located in the United States; then you don't have to pay this fee.) How much this is depends on the country you are located in. I for instance live in Switzerland and have to pay 0.50 CHF to withdraw to my account. Banks in countries within EU, except the United Kingdom, all charge 1.0 Euro.

Lets have a look at an example. I perform a small translation and charge a minimum fee of 20 Euro. 3.4 % of 20 Euro is 0.68 Euro, plus the flat fee of 0.35 Euro. Add the cross boarder fee of 1%, which is 0.20 Euro. So, of my 20 Euros PayPal takes 1.20 Euros. In addition comes the fee of 0.50 CHF for withdrawing the money to my regular bank account.

If the agency sent me a check instead of using PayPal, my bank would charge 7.50 CHF (4.80 Euros) for cashing the check for me. Each bank has its own fees for cashing checks and receiving wire transfers. But for smaller amounts PayPal is definitely the cheapest way of accepting payment. You will have to do a small calculation and see how large amounts you can receive before the PayPal fees exceed the fees your bank charges.

But is it safe?

Most freelance translators using this way of receiving payment are satisfied with the service and have had no problem with PayPal. I have only heard of one-two translators having their accounts frozen by PayPal for no legitimate reason.

Some negative aspects of PayPal

The problems with PayPal only start when you have a problem, so to speak. Resolving a problem can be very time-consuming and frustrating, and in many cases no solution is reached. Their customer support is not exactly something to brag about. It is very difficult to get behind their wall of auto responders and answering machines!

Another thing to be aware of are scams. There are numerous scams around, from people sending out emails pretending to be from PayPal asking you to confirm your credit card numbers, to hackers going in to your account and spending all your money.

Other negative aspects of PayPal are that it is not available in all countries and you can only receive payment in a few currencies.

By using PayPal you take a large risk compared to using the normal banking system. The chance of loosing your money is there. At the moment there are several lawsuits filed against PayPal and a lot of people who have lost money and not received any compensation.

Have a look at these web sites:

http://www.paypalwarning.com
http://www.aboutpaypal.org/

A few tips for using PayPal

The majority of the people having problems with PayPal are people selling items via auctions etc. Some examples: Payment is cashed from the buyers account and not transferred to the sellers account. A buyer uses a stolen credit card number to purchase items from you and your account risk being frozen for being involved with criminal activity.

As long as you use PayPal to receive money and don't connect you PayPal account to a credit card the risk is relatively low. In the worst case you could lose the money available on you PayPal account, threw whatever reason: hackers getting in to your account, PayPal freezing your account etc.

Having read a few of the horror stories about PayPal, I am very cautious using their system. But I still use it for receiving small payments. Basically out of lack of alternatives. PayPal was the first company to offer this kind of service, and for a long time it was the only company providing this service.

In the last year or so a few other companies have started providing the same service or very similar services. Most of them are very new companies and still not industry standard. When I ask agencies if they pay via Moneybookers for instance, they have never heard of this. But many of them can offer payment threw PayPal.

I am sure there soon will be very good alternatives. But for now it seems we are stuck with PayPal whether we like it or not.

Guidelines for using PayPal

The only advice I can give is to be careful using PayPal. Here are some tips to help minimize the risk of loosing money threw PayPal.

1. Only receive smaller amounts through PayPal.

2. Never leave large amounts on your PayPal account: Withdraw your money as soon as you have a couple of hundred Euros/Dollars.

3. Log in to your account and check that everything is ok each time you expect to receive payment.

4. Be prepared to lose the money on your account.

Get more info at Vertaalbureau Metamorfose Vertalingen

Khalid Belamdini is a freelance webmaster working at Vertaalbureau Metamorfose Vertalingen

---

Career Change: A Glittering Invitation To The Emotional Stalkers

As much as you are yearning for career-change, and as... Read More

Mid-Life Crisis: Its Not Just for Men Anymore!

A recent story in Career Journal begins:"The "midlife crisis" has... Read More

Resume Writing - Tips and Advice

Job-hunting is not the most exciting thing in the world... Read More

No Degree, No Problem

According to a recent survey, 52% of job candidates polled... Read More

Employment Law: Attendance Rewards - Legal Ramifications

If you were thinking of offering your employees special rewards... Read More

Nine Career Zappers

Today, everyone is looking for the secret to business success.... Read More

Take the Personal Out of the Workplace: Leave Your Troubles at the Door!

Bringing your emotional baggage into the work place is inappropriate... Read More

Job Search: Age-Proofing Your Resume

Older job hunters fear interviews where their age cannot be... Read More

Power Resumes ? Writing Your Objectives

A powerful resume starts with a good statement of objective.... Read More

Helping Mid-Life Employees Find Meaning

People work to live, but most also live to work.... Read More

Dont Get Caught In The Security Trap

The day you begin to think of your job in... Read More

Avoid Potential Job Interview Disasters

There are definitely things that you can do to avoid... Read More

Dissatisfied with Your Job? Take Your Power Back!

Apparently, there are all sorts of reasons to be dissatisfied... Read More

How to Make Money as a Reflexologist

Being a reflexologist is one of the top five career... Read More

Minding Your Own Business

Think you have gone as far as you can in... Read More

Where Did All The Farmers Go?

Several times a year, I hear someone complain about the... Read More

Your First Summer Work in the UK - Picking Strawberries The Right Way

Most jobs on farms in the UK involve picking strawberries... Read More

How To Resign Gracefully

Once a new job has been accepted, you need to... Read More

Your Interview Questions Are a Serious Matter

Of course interviews are mainly about you answering the questions... Read More

How To REALLY Look For A Job

Are you looking for a job -- really looking? Or... Read More

Rev-Up Your Network!

Whether you are looking for a job, new clients or... Read More

175 Power Verbs and Phrases for Resumes, Cover Letters, and Interviews

While you're revamping your resume or cover letter or constructing... Read More

When Bad Interviews Happen to Good Candidates

Going through the motions of a bad interview is like... Read More

TMI: The Resume Destroyer

"They say my résumé should be only one page long.... Read More

How to Negotiate The Best Salary and Benefit Packages

Salary and Benefits NegotiationOne of the most difficult aspects of... Read More

Don?t Discount the Temporary Position Interview

If you think, 'it's just an interview for a temp... Read More

10 Ways to Speed-Up Your Job Search Effort

Today everyone knows at least one person who has lost... Read More

The Night Worker

In the process of musing about our perennially awake world... Read More

What Recruiters Hate About Resumes And Cover Letters

Today, I'm going to share with you the awful truth... Read More

Drive Your Career Change ? A Direct Approach

If your career has gone off the road, take control... Read More

Seven Deadly Types of Job Recruiters

Collect them all!Over the course of six months in my... Read More

Hunting the Executive Head Hunter

5 tips to win over an executive head hunter or... Read More

Why Do You Want This Job?

Why Do You Want This Job? Is it because any... Read More