Whether it’s your job, birthday gift, or some other form and method of reward, we all like to get paid. Not only do we want to receive payment, but we often find ourselves executing payment of our bills and sending money to others in various ways. Technology has changed the transaction world around us significantly during the last decade. No longer are people restricted to checks and direct deposits. Today, Individuals are being compensated in digital currency and other forms and methods of payment. Clients are always asking how you want to get paid or what form of payment you accept in running a business? I didn’t have a preference until recently, but now I do. Let’s see some of the best methods to get paid and, conversely, make payments.
There are at least five Apps I can think of that provide relatively easy methods or ways for you to get paid or pay someone for services. But along with those choices, you should consider other factors such as their fraud policies if someone gets into my account and payments are made? Are the procedures for reimbursement the same for these peer-to-peer forms of payments as they are when you use my credit card or bank debit card? Besides their fees, what are their receiving or sending limits, and how fast will you get paid if you choose a particular form of payment? Getting paid in today’s economy is about selecting the best apps to achieve your specific transaction objective. It’s not a one size fits all, or a one app fits all scenario.
PayPal: If you want to transfer or receive large sums of money, PayPal should be your app of choice. Currently, the dollar limit for getting paid through PayPal is $60,000.00 per transfer for an unverified identified user. If you are verified, there is no dollar limit. If you want to acquire a costly asset, say like a boat, PayPal provides the best option. PayPal fees are 2.9% plus 30 cents for transfers made in the United States with a credit or debit card, but no fees for transfers are done from your bank account or PayPal balance. Transfers usually take one to three business days, but you can always expedite the transfer by paying an additional 1.5% for an instant transfer.
PayPal options go far beyond just transferring money to others or getting paid. They offer the ability to pay some retailers such as Walmart or Target and offer cashback promotional benefits. Using PayPal to get paid is not lilied to Fiat or what we know as dollars, but the platform allows you t purchase cryptocurrency hold it in your account, and resell it later. In the future, they will be a one-line saving paying 0.4% and maybe a stock trading platform also. The point is that this app provides perhaps the broadest range of services when you are seeking to get paid or make a payment.
Zelle: This form of getting paid, while popular, does provide opportunities for small transfers or payment. Because getting paid via Zelle is impacted by factors such as banking institution, banking history, and account, the limits usually range from $1,000.00 to 3,000.00 dollars. However, if your bank is not a Zelle participant, the limit is only $500.00. What’s great about using Zelle if you are trying to get paid is that transfers are free and instant! Unlike using some of those other apps, you have to wait around one to three days or pay an additional fee to access your money immediately. This method of getting paid or making payments gets rid of wire transfer fees and certified checks for small transactions.
Cash App: This seems to be the most popular choice for getting paid. While popular, it could be costly. The transfer fee is 3% for credit card transactions, but no fee is transferred from your Cash App balance. While the capacity to transfer cash is not $60,000.00 like PayPal, the Cash App transfer limit is ONLY $7,500.00 PER MONTH. These transfers are not instant and can take up to one to three business days to take effect unless you pay an additional instant transfer fee of 1.5%. One of the more exciting features of Cash App is that you can purchase a fractional share of stock or bitcoin to begin your investment. The App will also notify you when your investment spikes or dips and arrange for you to make regular cash investments. One takeaway for choosing and using an App should be the ancillary benefits and not simply transferring money or getting paid. Let’s talk Money Monday on the Zoom Conversation on March 28, 2022, at 7:00 p.m. Sign up at: https://bit.ly/TTCM_Register
Today’s what’s up is about considering TIPS (Treasury Inflated Protected Securities). Everyone is talking about inflation and its impact on gas prices and food bills. What impact is it having on your investment? It would help if you considered TIPS because your principal increases with inflation and decreases with deflation as measured by the consumer price index. I’m not saying you should do it. I’m just suggesting you look at it as we all figure out ways to combat inflation. And that’s what’s up! Let’s talk Mon-ey Monday fundamentals on the Zoom Conversation on March 28, 2022, at 7:00 p.m. Sign up at: https://bit.ly/TTCM_Register
Ruthven R. Phillip, Esq., is a tax attorney, Stewardship and Philanthropy Ministry Assistant, and CEO of Give2Getrich, LLC. Give2Get Rich, LLC 2022. All Rights Reserved. Any distribution or reproduction of part or all of the contents in any form is prohibited.