The past decade has seen the rise of “online payment methods,” which has been a game changer for freelancers. In just a few years, Venmo has even become a verb: “Just Venmo me!” When a brand name makes its way into the lexicon in such a short period of time, you know you have a service that meets people’s needs. But CashApp, the payment platform owned by e-commerce giant Square, is also making its way into the easy payment market, alongside the one that started it all – Paypal.
So let’s take a closer look at these 3 platforms, what differentiates them and how they can help you do your thing.
PayPal
What is it?
Except if you’ve been living under a rock for 10 years, you probably know what PayPal is. PayPal is the most popular and developed payment method online allowing your customers to pay with a debit, credit card or with the balance in their bank account or PayPal account. To use PayPal for your business, you will need a PayPal Business account.
How does it work?
PayPal has three main payment options: 1) PayPal to PayPal 2) payment with debit or credit card or 3) in person. When you charge your customers via the PayPal platform, they will have the opportunity to pay with a debit card, credit card, from their bank account or from their PayPal balance. You can implement a PayPal checkout with most e-commerce platforms if you’re selling goods. And if you’re charging for services, you simply provide your customers the email address connected to your PayPal account so they can find you on the PayPal platform. To be able to charge people in person, you will need to purchase a PayPal card reader (you can purchase one that you can simply connect to your phone).
How much does it cost?
PayPal has various payment methods that all come with their own costs. If you use PayPal to charge your customers online, PayPal charges you $0.30 + 2.9% of every transaction.
For in-person payment, you will need to purchase card readers and terminals – you can check their costs here. Then for every card swipe, the fee is 2.7% of the transaction.
What are the limits?
If your account is verified, there are no limits to what you can send or receive. There are limits on how much you can withdraw, but they’re pretty high ($500,000 per month).
How do I get my money?
You can easily link your Lili checking account to PayPal in just a few steps and get access to your money up to 2 days earlier. Standard transfers are free, but you also have the option to make an Instant Transfer, for which PayPal will charge you a 1% transaction fee capped at $10.
What else?
PayPal allows you to do business internationally. If your customer is abroad, you will be charged a 4.4% transaction fee + fixed fee depending on the currency for every online transaction.
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Venmo
What is it?
Venmo is a P2P (peer-to-peer) payment platform, owned by PayPal, that allows you to send and receive money to/from anyone with a Venmo account. You can use money from your bank account, a debit or credit card or your Venmo balance.
How much does it cost?
When you send money from your bank account or debit card, the transfer is entirely free. If you use a credit card to send money, Venmo charges a 3% transaction fee. But receiving money always comes at no charge to you.
How does it work?
When you open an account, you get a Venmo handle and a QR code to share with your friends. Then they can find you on the platform and send you money. Note that Venmo requires that you only exchange money with people you personally know. Their user agreement doesn’t allow you to accept money from strangers.
What are the limits?
When you sign up for Venmo, you’re only allowed to move around up to $299 per week. This limit is raised to $2,999 once your identity is confirmed (either by providing the last four digits of your SSN or connecting a Facebook account)
How do I get my money?
You can link your Lili business checking account to Venmo in just a few steps and then get access to your money up to 2 days earlier. Standard transfers are free, but you also have the option of an Instant Transfer, for which Venmo will charge you a 1% transaction fee with a $10 maximum charge.
What else?
Venmo lets you make your money exchange visible to your friends, allowing them to like or comment on them, like a social media feed.
Cash App
What is it?
Cash App (also referred to as Square Cash) is a similar service to Venmo with one major difference – it has a business option, meaning you can use it to receive payments from anyone in exchange for goods and services, even people you don’t know like first-time clients.
How much does it cost?
With a business account, CashApp will take a 2.75% fee for every payment you receive (it’s always free to send, except if you use a credit card, that comes with 3% fee)
How does it work?
When you open an account, you create your own cashtag ${businessname}. Share that hashtag or the QR code attached to it, with your payer, and they’ll be able to send you your payment in just a couple of clicks.
What are the limits?
Initially, Cash App allows you to send up to $250 within any 7 day period and receive up $1,000 within any 30-day period. You can increase these limits by taking additional steps to confirm your identity.
How do I get my money?
You can link your Lili checking account to Cash App in just a few steps and get access to your money up to 2 days earlier. Standard transfers are free, but you also have the option for an immediate transfer, for which Cash App will charge you a 1.5% transaction fee.
What else?
Cash App also offers you the option to dip your toes in the stock market with the option to invest as little as $1. And if it’s your thing, you can also buy bitcoin.
Oh, and actually there’s another solution:
Get Paid with Lili
What is it?
A Lili business checking account gives you the option to send your clients and customers a payment request directly from your Lili app.
How does it work?
Go to Menu / Get Paid / Send a Payment Request. Enter the amount, the reason for the charge and send the request directly to your client via email or text, with all the details they’ll need to send the money directly into your Lili account.
How much does it cost?
Nothing. Simple as that.
How do I get my money?
Once you receive the payment from your client, it’s available for you to use immediately.
