PayPal is seen as the easiest, most convenient way to send and receive money online, but the company has run into trouble as it has grown larger – including unnecessary account freezes, a lack of communication with its users, and increasing fees.



As a freelancer, most of my clients prefer to pay me via PayPal. It’s fast, convenient, and anybody with an e-mail address can sign up for free. However, the problem is that PayPal takes a large chunk of my pay cheque with its 2.9 per cent fees (plus a 30 cent transaction fee).



This year, I have paid $271.24 in merchant fees alone. PayPal charges an additional 2.5 per cent fee if I receive funds in U.S. dollars and want to convert it to Canadian dollars, as well as 50 cents per transaction every time I want to transfer less than $150 into my bank account.



Here are three PayPal alternatives for Canadians:



Payza.com



While all accounts are free, the basic personal account allows you to send funds, as well as receive funds up to $400 US per month for free. The Personal pro account charges 2.5 per cent (plus a 30 cent transaction fee) to receive funds. The fees are high, but still a cheaper option than PayPal. You can add money to your account via bank transfer, wire transfer, certified cheque or money order, as well as a credit card.



Related: 5 alternatives to eBay



MoneyBookers.com



This is a payment processing company based in the United Kingdom. Receiving money is free, and there is a one per cent fee when sending money to someone. Personal accounts are charged a monthly service fee of $1.50, but the fee will be waived if the user has logged into the account or made a transaction every 18 months.



Interac e-Transfer



There is no fee for receiving money through Interac e-Transfer, however the sender may have to pay a small fee from their financial institution. For example, President’s Choice financial charges a flat fee of $1.50 for each e-Transfer.



Related: How to make money by selling an old cell phone



There aren't many options for online payment websites in Canada, so over the past few months, I’ve tried to limit my usage on PayPal by asking my clients if they can send money through Interac e-Transfer, or a cheque. Even though payment by cheque is a lot slower, I feel better knowing that less of my hard-earned money is going to pay fees.



Do you use PayPal?



Krystal Yee lives in Vancouver and blogs at Give Me Back My Five Bucks and Frugal Wanderer. You can reach her on Twitter (@krystalatwork), or by e-mail at krystalatwork@gmail.com.