How to accept payment abroad: cash, card, transfer

When you have only just started taking on clients abroad — as a service provider, a tutor or a freelancer — a simple but important question arises: in what way should you take payment? Cash, a card terminal, a bank or an instant transfer — each option has its advantages and its pitfalls. There is no clear-cut answer along the lines of “this way is better”: much depends on where you work and who your clients are. Below is a general guide to help you choose the combination that suits you.

A note straight away: this is not legal or tax advice, but rather a guide for getting started. The rules on recording income, receipts and reporting differ from country to country and change over time. So check anything relating to documents and taxes against an official source and, if needed, with a specialist.

Cash

The simplest and fastest method: the money is with you immediately, with no payment-service fees and no delays. Cash is convenient for work on the go, at the market and for small services.

There are downsides too. It has to be stored safely and broken into change, it is not always convenient for large sums, and some clients abroad hardly carry cash at all. In some countries it is still very widespread, in others clients on the contrary expect cashless payment — so take your cue from the habits in your city. And it is worth recording every payment received for your own bookkeeping, even if that is just your notebook or a spreadsheet.

Card terminal and QR

Compact terminals such as SumUp, Zettle or myPOS let you accept cards and contactless payments straight from your phone — it is convenient for the client, and you do not need a till. For many service providers this increases trust: “card accepted” sounds professional. Some services also offer payment by link or QR code, which is useful for online orders.

What to keep in mind:

• the service charges a fee on every transaction (the percentage varies between providers — check the current rates on their website);
• the money usually does not arrive instantly, but after a day or two;
• you need an account to withdraw the funds to, and basic registration with the service.

Transfers: bank and instant

A bank transfer works well for larger sums and regular clients: you give your details (IBAN), the client sends the payment. Everything leaves a trace in the account history, which is convenient for bookkeeping. The downside is that the client has to enter the details manually, so for one-off small payments this can be inconvenient.

Instant transfers — SEPA Instant in the euro area, as well as apps such as Wise, Revolut or PayPal — are something in between: the money arrives quickly, often within seconds or minutes. Here too there can be fees, limits and separate terms for business use, so before you make this your main method, check the rules of the specific app.

What to choose

There is no single “correct” option — in practice it is convenient to combine several. For example: cash and a terminal for services on site, IBAN or an instant transfer for larger orders and online clients. The main thing is that it should be easy for the client to pay and easy for you to keep records. Whichever you choose, agree on the payment method in advance — that way there are fewer misunderstandings when it comes to settling up.

And once more about staying on the safe side: whatever the payment method, keep your own simple record of incoming payments, and check questions of receipts, self-employment and taxes against the official rules of your country or with an accountant. If you need a Ukrainian-speaking specialist — an accountant or a consultant is easy to find in the “Свої” catalogue.

On “Свої” you can state in your profile which payment methods you accept — so that clients can see it even before getting in touch.