The pros, cons, and real stories behind the most popular ways to get paid online.
Quick Summary / Key Takeaways
- PayPal: Easy and global, but infamous for freezes and surprise account holds.
- Stripe: Great for online businesses and developers, but compliance is extremely strict.
- Wise: Fast, low-cost, and built for international transfers—becoming a freelancer favorite.
- Each platform has strengths: PayPal for convenience, Stripe for customization, Wise for cross-border speed.
- Bottom line: Wise is emerging as the go-to for freelancers, especially if you have global clients.
Stats Snapshot
| Feature | PayPal | Stripe | Wise |
| Founded | 1998 | 2010 | 2011 |
| Primary Use | Peer-to-peer + business payments | Online stores / APIs | International transfers |
| Average Fees | 2.9% + $0.30 domestic | 2.9% + $0.30 per transaction | ~0.35–1% (varies by currency) |
| Best For | Freelancers + quick invoicing | Businesses needing customization | Cross-border freelance payments |
| Known Issues | Account holds / freezes | Overly strict compliance bans | Newer in U.S., limits for big sums |
Execution Checklist: Choosing a Processor
- Step 1: Consider your client base (domestic vs international).
- Step 2: Compare fees (flat vs percentage).
- Step 3: Review compliance rules (especially if in “high risk” industries).
- Step 4: Test payout speed—critical for cash flow.
- Step 5: Keep at least two active options (backup matters if an account freezes).
Intro: The Reality of Getting Paid Online
Freelancing is fun—until you have to chase down payments. That’s where payment processors come in.
I’ve personally used all three of the “big ones”:
- PayPal for more than a decade—it’s worked well for me, but I’ve read horror stories about frozen accounts.
- Stripe, which once banned me for something as simple as writing a blog post about CBD. I didn’t sell it. I didn’t even process payments for it. I just blogged—and Stripe shut me down.
- Wise, which surprised me. I used it for a big website sale with an international buyer, and the money hit my U.S. bank account the same day—for about a $1 fee. Now my freelance boss in the U.S. pays me through Wise, too.
Each platform has its strengths and weaknesses. Here’s the full breakdown so you can decide which is best for your freelancing business.
Table of Contents
FAQs Section
How Reliable Is PayPal for Freelancers?
PayPal has been around forever, and it’s probably the first payment tool most freelancers try. I’ve personally used it for over a decade with few issues. Clients like it, it’s easy to invoice, and it’s available worldwide.
But here’s the rub: PayPal is infamous for freezing accounts. If they suspect unusual activity—a big payment from a new client, or something they consider “high risk”—they can lock your money for up to 180 days.
Pro tip: Take 10 minutes to actually read PayPal’s acceptable use policy. Many freelancers don’t, and that’s when problems happen.
Takeaway: PayPal is convenient but risky if it’s your only payment processor.
What Are the Pros and Cons of Stripe?
Stripe is powerful. It integrates with websites, apps, and checkout systems, making it the backbone for many online stores. Developers love it because it’s customizable and modern.
The downside? Stripe is extremely strict about compliance. I once had my account banned simply because I wrote a blog post about CBD. I didn’t sell CBD. I didn’t take payments for it. I just wrote about it. Stripe flagged me as high risk and shut me down.
If you’re in a “safe” industry, Stripe is great. If you’re anywhere near what they consider risky, it can vanish overnight.
Takeaway: Stripe is excellent for online businesses, but freelancers should know the rules before relying on it.
Why More Freelancers Are Using Wise
Wise (formerly TransferWise) started as an international money transfer service, and it’s quickly becoming a freelancer’s best friend.
I didn’t expect to like it as much as I do. The first time I used Wise was for a website sale with an overseas buyer. I was nervous—the other option was escrow.com, which charges 10% fees. Instead, the buyer used Wise, and I got the money into my bank account the same day. The fee? About $1.
Now my current freelance employer in the U.S. pays me via Wise, too. It’s simple, cheap, and fast.
Takeaway: If you work with international clients—or even domestic ones who want a cheaper way to send—you should at least try Wise.
Which Platform Has the Lowest Fees?
- PayPal: 2.9% + $0.30 per domestic transaction; higher for international payments.
- Stripe: 2.9% + $0.30, plus extras for international cards or currency conversions.
- Wise: ~0.35–1%, depending on the currency. Usually the cheapest option by far.
If you’re receiving large or international payments, Wise almost always wins.
Takeaway: Wise is the low-cost leader, especially for global freelancers.
Which One Pays Out the Fastest?
Speed matters—especially when big amounts are on the line.
- PayPal: Instant to your PayPal balance, but 1–3 days to your bank (unless you pay extra for instant transfer).
- Stripe: Standard 2-day rolling payouts. New accounts or high-risk ones may take longer.
- Wise: Often same-day transfers with exact delivery windows, even across borders.
When I sold my website, the buyer sent payment at 7:30 AM. Wise told me it would hit my account in seven hours. At 1 PM, the money was sitting in my bank. The fee? About $1. If I’d used PayPal or Stripe, I’d have lost hundreds in fees and waited days.
Takeaway: Wise wins on both speed and cost.
📌 Callout Highlight:
“I sold a website and got paid through Wise at 7:30 AM. They told me it would land by 1 PM—and it did. The fee? About $1. That kind of speed and cost is unheard of with PayPal or Stripe.”
Should You Use More Than One?
Yes. Every freelancer should keep at least two payment processors active. Accounts can be frozen, flagged, or shut down for reasons that don’t always make sense.
I keep PayPal + Wise. PayPal works for legacy clients who are comfortable with it. Wise handles my international work and most of my freelance payments now. Stripe isn’t for me, but if you’re running an online shop, it’s a solid option.
Takeaway: Don’t put all your eggs in one processor basket.
Advanced Tips / Best Practices
- Keep at least 2 active payment options.
- “Warm up” new accounts gradually—large first deposits often trigger reviews.
- Always review acceptable use policies (especially Stripe).
- For big deals (like website sales), Wise can beat escrow.com’s 10% fee by a mile.
- If you like Wise, use your referral link to offset your own fees (smart freelancing hack).
Where to Learn More
Want more ways to protect your freelance income? Click here to go back to the Money Diary homepage.
Wrap-Up
PayPal, Stripe, and Wise all help freelancers get paid—but they’re not equal. PayPal is convenient, Stripe is powerful, and Wise is the dark horse that’s quickly becoming the best option for freelancers.
For me, Wise has become my go-to: it’s cheap, fast, and works globally. If you don’t have an account yet, it’s worth setting one up.
👉 Here’s my referral link to try Wise: Sign up here
Author Bio
I’ve spent over a decade freelancing, running online businesses, and even working inside the merchant services industry.
I’m Kelly, founder of Money Diary, where I share practical strategies for building online income streams without the fluff. From side hustles to SaaS to selling websites, I’ve learned what it takes to get paid safely and quickly online—and I want to help other freelancers do the same.
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