6 Best Ways To Pay Someone Other Than Writing a Check or Cash
Written by
Martin Dasko
Edited by
Amber Barkley
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If you’re looking to pay someone for a job they completed or to settle up any amount that you may owe someone, there are various ways to pay them that don’t involve writing a check or handing over cash. Here’s a look at the numerous options for paying someone to help you decide on the best way to hand over the funds.
Payment Apps
“Apps like Venmo and Cash App popularized the idea of digital peer-to-peer payments — friends and family in particular,” said Zach Robbins, finance expert and founder at Loanfolk. “The trend only accelerated after that initial use case to include more types of payments, and they’re now ubiquitous. Many of the same apps… are now also great for paying small businesses to enterprises. Chase and big banks even followed suit by launching Zelle.”
Multiple payment apps have made sending money, splitting a bill or paying an invoice easier than ever. You can transfer the funds with a few taps on your phone, as long as you have the person’s contact information. You’ll just need to ensure that a bank account with adequate funds is connected to the app.
Online Payment Processors
“Services like PayPal, Stripe and Square are widely used for their convenience and security,” said financial advisor Steven Crews. “They allow you to send money using just an email address or phone number. These services also offer buyer and seller protection for transactions.”
These online payment processors have simplified the way that you can send payments. Once you connect a bank account, you can send money worldwide. You can even send the money as a gift to ensure that the person doesn’t have to pay any fees.
Prepaid Cards
“Prepaid cards can be loaded with a specific amount of money and given to the recipient, who can then use the card as they would a debit or credit card,” Crews noted.
You can preload a card, and then the person can treat it like cash when going shopping. This can be an ideal option if the other party isn’t willing to share contact information or if they don’t want the funds transferred to their bank account for some reason.
Gift Cards
“For a more personal touch, consider giving a gift card for a retailer or service that you know the recipient will appreciate,” Crews suggested.
If you’re splitting a bill and your friend doesn’t want the cash, you can load up a gift card with a set amount as your payment. For example, if you know that they’re a coffee lover, you can put the amount of a Starbucks gift card.
Bank Transfer
“Bank transfers are a secure and straightforward way to send money directly from one bank account to another,” said Crews.
This method is particularly useful for large amounts, since you’ll want to ensure that everything’s completed securely. You can visit your bank or log in to your banking app to make a transfer from one account to another.
Cryptocurrencies
“While not as widely accepted, cryptocurrencies like bitcoin offer a unique way to send money,” said Crews. “They offer the advantage of being decentralized, but their value can be volatile.”
Using cryptocurrency to exchange payments is slowly becoming more common, but you have to ensure that this person is familiar with the technology. The good news is that you can transfer bitcoin or ethereum — among many other cryptocurrencies — directly instead of liquidating your asset to cash, if the person you’re paying agrees.
Payment Considerations
“Apps like Venmo, Zelle and Cash App are popular for their ease of use,” said Crews. “However, they may not offer the same level of protection as online payment processors.”
You’ll want to be careful how you send the money, because you don’t want any safety concerns to arise. You also want to think twice before sending over a large sum of money to ensure you have the correct contact information.
“App-style payments are easy, fast and secure, and because they’re digital, they are a great way to maintain proof of payment, but it’s two-sided,” warned Robbins. “While these payment apps are super easy to use and have excellent security because of their scale, they also tend to be big targets for scammers. Double checking information as you send or entertain a request is critical and will ensure the money gets where it should go.”
When deciding how to pay someone, you should use the method you’re most comfortable with. You should also communicate with the person so that they understand how they’ll be paid. You want to be positive that they’ll understand how they’ll be collecting the money, so there isn’t any confusion.
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