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Are you considering using PayPal to pay your independent contractors? It’s a common option for businesses that need to make fast and secure payments across the globe.
In this blog post, you’ll learn how to use PayPal for your contractors—and why there’s a better, faster, easier alternative.
Key Takeaways
- PayPal can be a fast and secure way to pay independent contractors across the globe, but businesses should be aware of fees, limits, and availability in the payee’s country.
- Payees must have a PayPal account set up and in good standing, and their information should be verified to ensure the right person receives payment.
- Businesses should always read the fine print and take caution to protect themselves from potential fraud.
How to use PayPal to pay independent contractors
Watch out for the fees
PayPal charges fees for each transaction, which can vary depending on the location of the payer and payee, as well as the currency used. Be sure to factor these fees into your budget and negotiate them with your independent contractors.
Know the limits
PayPal has certain limits on the amount of money you can transfer per transaction, per day, and per month. Make sure that these limits work for your payment needs and don’t cause any delays.
Check that PayPal is available in the payee’s country
Not all countries have access to PayPal. Before deciding to use PayPal to pay your independent contractors, check if it’s available in their country.
Ensure your payee has a PayPal account
Before you can use PayPal to pay your independent contractor, they must have a PayPal account. Make sure that they have a PayPal account set up and that it’s in good standing.
Verify the payee’s information
To ensure that you’re sending payment to the right person, verify your independent contractor’s PayPal account information, such as their email address and account ID.
By following these steps, you can use PayPal to pay your independent contractors quickly and efficiently. It’s a great option that can help you streamline your payments and make sure your contractors get paid on time.
Want a better way to pay your team? Try a Global EOR
If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. This is why global EOR exists, which saves you 90% of the time you spend on contractors’ and employees’ paperwork each month.
