There are many ways that you can receive money online.
If you are an author or blogger, you will be paid for your book sales royalties, website advertising or affiliate marketing programs.
When you sign up to publishing platforms such as Amazon Kindle Direct (KDP), Google Play, Smashwords or Draft2Digital, each one will advise you of its payment method options.
For advertising services like Google Adsense or Chitika, when you register, you will be informed about how you will receive payments. It is the same for all affiliate marketing programs you might join.
Free of fees
The good news for authors is that in most cases, you will not be charged any fees. This applies to Electronic Funds Transfer (EFT), which pays directly to your bank account, Payoneer and PayPal payments.
All payment services charge a fee, but it is generally paid by the company sending money to you. In these cases, there is usually no fee for you to pay to receive your payment by EFT or money from the PayPal.
If you are in doubt, you can check your transactions and if there are any fees, they will be noted in your transaction details.
However, it is important that you carefully check how you will be paid by each service provider when you sign up. You may have to supply your bank account details or open a PayPal account if you do not already have one.
If you elect to or have no choice other than to receive your payments by check (cheque), you will definitely be charged a clearing fee by your bank. These fees range widely between banks and countries.
Payment method or methods offered by the most popular services:
Amazon Kindle Direct Publishing (KDP) – EFT and Check
Smashwords – Check (US only) and Paypal
Draft2Digital – EFT, Paypal and Payoneer
Google Play Books – EFT
Google Adsense – EFT
Chitika – Payoneer only
Clickbank – Check only
Amazon Associates – EFT (US only) and Check (All international payments)
ShareASale – EFT
Viglink – Paypal
Individual and company direct affiliate programs – Generally PayPal
Related reading: Are Your Amazon Books Merged On Your Book Sales Page?
When do I need to pay PayPal fees?
You will only have to consider if you need to pay a PayPal fee if you sell goods or services directly to a customer.
It is a situation that will rarely apply to authors. However, for bloggers, fees will apply if you sell sponsored or advertorial content on your site, or sell services such as editing or proofreading.
In these situations, you might have a Paypal button on your site to accept payment by Paypal or credit cards or debit card.
Or you send your client a Paypal invoice. In either case, you will be charged a fee for each transaction. There will be no fee for your customer.
When you receive a payment and check your Paypal account, click on a transaction and you will see the fees at the bottom of the details page. Your PayPal balance will be credited with the payment, less the fees.
How can I calculate my Paypal fees?
There are two different basic Paypal fee scales with fixed fees and percentage deductions.
For sales within the US 2.9% + $0.30 per transaction.
For international sales 4.4% transaction fee plus a fixed fee based on currency received.
It is worth noting that if you send or receive money to a friend or family member for money as a personal payment from PayPal, there is no fee if you use your PayPal balance or bank account.
However, if you transfer money by credit card or Paypal credit, you will pay 2.9% plus a fixed fee.
For most self-publishing authors, you should have no concerns about any fees being charged to you. All fees will be paid by the publishing service that is paying you your book sales royalties.
It doesn’t matter if you have elected to be paid by EFT, Paypal or Payoneer.
However, if you have no choice other than to be paid by paper check, you will certainly have to pay bank fees. Check with your bank and ask them what fees it charges.
Most pro bloggers prefer to use Paypal because it is extremely efficient and convenient to send and receive money.
It makes paying for plugins, themes and software subscriptions very easy. At the same time, it is also the best way to get paid for services.
With a linked bank account, the facility to use your PayPal balance or bank account to pay bills or withdraw money makes managing your payments and receipts very easy to manage.
But there will be fees when you receive money. Perhaps it is a small price to pay for the convenience.