Paying vendors electronically

5 Replies

Hello BP! I have been driving over to physically give my contractors checks but want to set something up electronically. What are the best services folks have been using? Venmo? I like to pay my contractors quickly and don’t like to wait for the check in the mail. Thanks! Ari
@Ari Kapel I just make sure that they have a bank account and then, depending on the amount, I can do an online bank to bank transfer or I can go to the closest location of their bank and deposit into their account. I have gone so far as to make them get a bank account at my bank (Wells Fargo) to make it easier for me. It may be a little selfish, but they like to get paid quickly and I tell them that will be the fastest way.

I’ve used Zelle to pay contractors. It’s pretty much instant. 

@Ari Kapel

I have been using Google Pay. The near universality of Google tends to get you out of the 'Do you have...' discussions. Very nice interface and great audit trail, which is almost all I need.

I like Venmo and Google pay and Zelle but the only problem is that (right now) they only work with personal accounts. If you are trying to use a business account it either won't work or if it does you risk them closing your account for violating the terms. If you don't mind commingling personal and business expenses it is fine but if you have LLCs set up you risk losing that extra layer of liability protection. Checks, deposits or credit cards accepted through quickbooks or some other software are my main go tos but it just depends on the contractor.