10 responses to “Freelancers love direct deposit, so why don’t more publishers offer it?”

  1. darrell

    No, your sample’s not bad. Corporate clients demand to pay by direct deposit. Government clients are getting on board. Small businesses jump at the chance. Not-for-profits think it’s a great idea. But publishers scratch their heads in bewilderment.

    Perhaps, if they are small shops with loose-knit management accountability, they are afraid that they are giving license to their bookkeepers to abscond with all the money.

    On the other side of the coin, however, when I bring on fellow freelancers as sub-contractors, I prefer to pay them by direct deposit, but they usually prefer check. So, perhaps your sample is a bit off on that side.

  2. Jennifer Willis

    Don’t forget that PayPal requires a transaction fee, too. It can be either paid by the person/organization sending the money, or taken out of the amount received by the writer.

    My one client who uses direct deposit to pay me had previously gone through PayPal — and, yes, I was the one stuck paying the transaction fee.

  3. Corinne McKay

    Great post, Michelle! The situation is similar in the translation industry; my overseas clients pay by wire transfer (costs me about $10 each time) and most of my US clients still pay by check. But, I have 2 clients who somehow (I should ask them how…) have an arrangement with PayPal where I do not pay any fees when I receive payments from them. I’m not sure if they pay a fee to initiate the payment? Anyway, great topic!

  4. Some interesting links « Thoughts On Translation

    […] WordCount, Michelle Rafter asks Freelancers love direct deposit, so why don’t more publishers offer it?. Great question! Why don’t more translation agencies offer it […]

  5. darrell

    My comment about my sub-contractor writers not going for direct deposit was meant to be slightly facetious. I pretty much know it’s just the particular crowd I deal with.

    I happened to read your post on this subject just a day or two after a client enclosed a “direct deposit authorization form” with their latest payment. That gave me an idea. Using their form as a crib sheet, I created one on my letterhead for anyone who expects money from me: vendors, sub-contractors, professional associations, etc. I’m including it with every payment I mail out.

    I’m still working on clients, however. I don’t quite understand their reluctance. Is it fear (of embezzlement, for example), ignorance, laziness?

  6. Melissa

    Hi Michelle! The feature on Paypal is called Mass Pay. There are no fees for people who use it to send payments.