How do sugar babies get paid? What is the safest way to receive money from a sugar daddy? If you’re asking these questions, you’re in a pretty good position.
You know what you want and you went after it. Now, you’ve finally got it – a sugar daddy and an allowance amount that makes you smile.
You’re pleased, you’re excited, but you’re also wondering…how exactly do I receive this money?!
We totally get the confusion.
A sugar baby allowance is unlike anything you’ve received before. It’s not income from a place of work. And it’s not a little birthday check your grandparents sent you. It’s a regular infusion of a substantial amount of money. You’re going to have to come up with the best way to handle it.
We’re going to show you:
- Safest ways to receive money from a sugar daddy
- Pros and cons of various options for getting paid as a sugar baby
- Tips on making every payment option safer
- How sugar daddies transfer money – and how they don’t
Let’s dive in.
How Do Sugar Babies Get Paid?
Every sugar baby has her own preferences and once you have some experience, you’ll find what works best for you.
In the meantime, though, here are some of the most popular ways sugar babies like to receive their allowance (in no particular order).
One way to receive your allowance is in cold, hard, untraceable cash. Cash is one of the most popular options, especially in the beginning of sugar arrangements, simply because it guarantees privacy. As a sugar baby, you don’t have to provide any bank information – or even your real name – to receive cash.
Ditto for sugar daddies. There are no records left in his bank account or payment apps. This anonymous aspect can be comforting for both sugar daddies and babies.
Cash is also scam proof. Once a sugar daddy has given you cash, it’s final. You don’t have to wonder if the check will clear or if the PayPal payment will be reversed. Once it’s in your hands, it’s yours.
All that being said, getting your sugar baby allowance in cash also has some unique drawbacks. Here are the quick pros and cons.
- Convenient and easy
- It’s untraceable
- Anonymous and doesn’t require sharing any personal details
- Easy to use for almost anything you need to buy
- If lost or stolen, it’s gone for good
- Can be awkward for both sugar babies and daddies
- Safely managing cash can be difficult – i.e. storing, hiding, spending
Is Cash the Safest Way to Receive Money from a Sugar Daddy?
Overall, cash is a good option because it’s untraceable. But keep in mind that this particular advantage of cash can also be a huge disadvantage. Because if it’s lost or stolen, you won’t be able to get it back.
With that in mind, cash can be inherently risky. And knowing that, if you’re receiving a few thousand in cash every month, you might suffer mounting paranoia in direct correlation with the amount of cash you’re storing.
We would only recommend going the cash route in the beginning. And for continuing cash allowances, it’s probably only for you if you’re very, very good with not losing things as well as managing your cash. Anyone who’s received a bulk of cash can testify how easily it is spent and how difficult it is to recall precisely what it was spent on.
And even if you’re really good at both those things, there are still a couple things we recommend you do.
Tips on Receiving Cash from a Sugar Daddy
If you decide to go the cash route, we recommend doing this as soon as you get your allowance:
- Get money orders to pay your rent, your car payment, your tuition, etc. You can get these money orders for like a dollar or two at your local post office and it is a safe, untraceable way of paying your bills and reducing your cash burden.
- Make little deposits into your bank account. See the next section for more on this.
#2. BANK DEPOSIT
Another popular way to receive your allowance is through bank deposit. It’s easy, convenient, and spares you the awkward handing-over-of-the-stuffed-envelope routine. Plus, it’s much safer than hoarding wads of cash under your mattress.
Once you’re in an arrangement with a sugar daddy you trust, you can give him the name of your bank, your name and your bank account number and he can make weekly, bi-monthly, or monthly deposits directly into your account.
So what are the pros and cons of receiving your sugar baby allowance via bank deposit?
- Hands-off and easy
- Money in the bank is safe and secure
- No awkward exchange of cash
- You need to share banking info
- Easily traceable, not anonymous
- Possibility of tax trouble
Is Bank Deposit the Safest Way to Receive Money from a Sugar Daddy?
A bank deposit is easy, convenient, and offers safety points that cash doesn’t. However, it comes with one big potential drawback. And that is the possibility of tax trouble.
According to Forbes.com:
“The minimum deposit that require banks to report it to the IRS is $10,000. Reporting of bank deposits over $10,000 or more is required by the federal law in accordance with money laundering and drug trafficking laws. Failure to report transactions over the said amount are punishable by law.”
Most sugar babies have an allowance that’s under $10K, but regular deposits of a few thousand dollars might also set off bank alarms and some prefer to be safe than sorry.
Tips on Receiving Bank Deposits from a Sugar Daddy
Sugar daddy bank deposits might be convenient but it’s only recommended for arrangements in which you already know and trust each other.
Never fork over your bank info to just anyone! Especially a potential sugar daddy that you just met online.
PayPal is a super convenient way to receive money without giving out any of your personal details. All your sugar daddy needs is your email and he can send you your allowance in a matter of minutes.
You don’t even need to provide your real email address. In fact, we recommend making a PayPal account that is linked to your sugar baby burner email.
If you don’t already have one, check out our sugar baby safety tips on why you should.
But back to the show, what are the unique pros and cons of getting your sugar baby allowance via PayPal?
- Instant payments
- Fast and convenient
- Protects personal information
- Very low privacy and low anonymity
- Possibility of tax trouble
Is PayPal Safe to Receive Money From Sugar Daddy?
PayPal is fast, convenient, and offers a low-risk way to receive money from a sugar daddy since you don’t have to provide any personal information apart from an email address.
That being said, it’s not anonymous. There remains an electronic record of every payment your sugar daddy sent your way. This might not be a problem, but PayPal has new regulations…
“PayPal says it will use your tax ID number to send tax Form 1099-K to you and the IRS when the payments you receive exceed both of these milestones in a calendar year: $20,000 in gross payment volume for goods and services and 200 payments”
Most sugar babies won’t meet these regulations (i.e. 200 payments), but all that information will be sitting in your PayPal account if the IRS does decide to go browsing.
Tips on Receiving PayPal Sugar Daddy Payments
PayPal is a safe way to receive money from a sugar daddy – as long as he’s a real sugar daddy. The problem is that there are swindlers who like to use PayPal to try to scam you. In fact, it’s a popular sugar daddy scam that many sugar babies have fallen for.
But don’t worry – you can avoid it completely. Just do these two things:
- No Relationship, No Contact. If you just started chatting with a total stranger you’ve never met and don’t have any relationship with, and he offers to send you an allowance for pretty much no reason – he’s 100% a scammer. Block and report him.
- Never Pay First. The most common PayPal scam is when a sugar daddy scammer sends you a picture of a pending payment and then asks that you send him a small fee or accept his request for a smaller amount. This is not how PayPal transfers work. Don’t ever pay.
Overall, PayPal works as a payment tool if you’re in a trusted sugar arrangement. But remember that a real sugar daddy will never make you pay something in order to receive an allowance. If a potential sugar daddy is promising you the world – but you have to pay a small fee first, that’s because he’s a scammer.
#4. Digital Wallets
PayPal is no longer the only viable peer-to-peer payment method. It’s 2023 now and there are a whole host of digital wallets that let you receive your sugar baby allowance with only the username and/or email associated with your account.
No personal details = no risking your personal info.
So which digital wallets are best? Here are our favorite PayPal alternatives you can use to receive money from a sugar daddy:
- Venmo. Easy to sign up for and a fast, convenient way to send money. But it does have a $5,000 weekly limit on both sending and receiving money. Also, if you have an unverified account, you can only send $1,000 per transaction.
- CashApp. Very convenient to use but has a very low sending limit for unverified accounts – i.e. you can only send up to $250 every week or $1,000 per month. If you complete the identity verification, the sending limit increases to $7,500 per week.
- Google Wallet. If you already have a Gmail account, this is an easy one. It’s safe, convenient, and allows your sugar daddy to send you money with just your email address. For unverified accounts, you can only send $500 per week. Once identity verification is done, the limit is $5,000 per week.
- ApplePay. It’s convenient and secure to use. It also has fairly high sending limits – $3,000 at a time or $10,000 per week.
- Wise. Wise, formerly known as TransferWise is one way to receive money from a sugar daddy that just doesn’t get talked about. It allows you to set up virtual bank accounts in various countries – i.e. USA, Canada, Australia, UK, etc., so you can send, receive, and hold any currencies you want.
Are Digital Wallets a SafE Way to Receive Money from a Sugar Daddy?
Digital wallets are pretty great and work similarly to PayPal – instant, fast and protects your personal information. So the next time a potential sugar daddy asks you for your bank account password – so he can “check” the payment – you can give him your email address or tell him to go take a hike.
In this way, digital wallets are safe. All apps are equally as discreet and only show up as “Venmo” or “Paypal” in a sugar daddy’s bank account statements.
But when it comes to taxes, it’s the same situation as PayPal. There will be an electronic record of every transaction so it’s definitely not anonymous.
Tips on Receiving Sugar Daddy Payments via Digital Wallets
Digital wallets are not a scam at all. But fraudsters often like to use the convenience of these apps to try to scam sugar babies.
How do you prevent ever getting scammed? It’s the same thing we recommend for PayPal – if someone you’ve never met and have no real relationship with offers to send you a boatload of money, that man is a scammer.
Also, never ever send money to someone who is claiming to be a sugar daddy. If anyone you chat with online asks you to send money via CashApp, Venmo, or ApplePay – we guarantee that is not a real sugar daddy. It’s a scammer. A genuine sugar daddy will never ask you to send him money.
#5. PRE-PAID CARD
A prepaid card is probably one of the best options for sugar babies. That’s because these cards are almost like cash – with all the convenience of a debit/credit card.
That being said, they do have some downsides. Here’s a look at the pros and cons of being paid with a prepaid card.
- Easy to reload even large amounts of money
- Very versatile – can use it to pay both online and offline, can transfer to own bank account, can withdraw cash, or use it to pay all your bills
- No need to provide any personal information to your sugar daddy
- Can be recovered if lost
Is a Prepaid Card Safe to Receive Money From Sugar Daddy?
A prepaid card is a safe way to receive money from a sugar daddy. BUT you shouldn’t have to pay for it.
Here’s what we mean. We get a variation of this question almost every week:
“A sugar daddy wants me to get a prepaid card…should I?“
The answer is NO. If a sugar daddy wants you to buy and load a prepaid card so that he can send your allowance to the card, be wary. It’s most likely he’ll ask for the serial number and drain the balance you’ve loaded.
If a sugar daddy sends you a prepaid card but says you need to send him funds from the card or buy something for him – he’s a scammer. He’s most likely using a stolen prepaid card and he needs you to launder the money for him.
Overall, prepaid cards are a great option to get paid as a sugar baby – as long as you’re in an arrangement with a genuine sugar daddy. Not someone you’ve never met but have briefly chatted to online.
Remember: No real sugar daddy will ask you to spend money to get your allowance. No real sugar daddy will need you to send him money for whatever reason out of your allowance.
Tips on Receiving Money on a Pre-Paid Card
The biggest downside of prepaid cards is that it could be a headache if you lose it. To make sure you can be re-issued a new one and not lose the money you have in your account, be sure to keep a copy of your card number as well as the toll-free number listed on the back of the card.
#6. BILL PAYMENT
Another popular option for sugar babies to get paid is to simply have their sugar daddies pay all their bills.
Here are the pros and cons to getting paid as a sugar baby in bill payment.
- You have no bills to worry about since he pays the rent, tuition, and other bills directly
- No money – or very little money – actually changes hands
- Lack of control
- Can’t put anything toward savings
- Less privacy since you have to disclose all of your bills and personal information to your sugar daddy
Is Bill Payment a Safe Way to Get Paid?
Having a sugar daddy pay your bills can be a good, stress-free way to get paid as a sugar baby. But only if you:
- Trust your sugar daddy. Like, a lot. He’ll need to know your real name, your address, the school you go to, your bank information, probably even details like your account logins and security information. So it needs to be a sugar daddy you’re in a long-term, intimate relationship with.
- Have a SHTF plan. In other words, a backup plan. If you are entirely reliant on a sugar daddy for every expense in your life, you need some kind of backup plan in case the proverbial poop ever hits the fan. If something happened to your sugar daddy – you could be left without shelter, tuition, and even food. So make sure you either have savings to cushion you just in case or a job on the side.
Tips on Having a Sugar Daddy Pay Your Bills
As mentioned, the most important thing is that you absolutely trust your sugar daddy.
The next important thing is to make sure you also have another source of income. Perhaps the sugar daddy who is taking care of all your bills is also willing to give you some allowance for you to save. Or you can choose to continue working.
Whatever it is, just make sure that you’re not going to be left completely vulnerable if anything happened to your arrangement with your sugar daddy.
Way back in 2017, we listed cryptocurrency – specifically Bitcoin – as a great way for sugar babies to get paid. If you took our sage advice, received your allowance in BTC and HODL-ed some of it, you’ve probably done amazingly well for yourself.
If that’s the case, you’re welcome.
Well, now it’s 2023 and we say cryptocurrency in general and BTC in particular is still a decent method for sugar daddies to transfer money.
Here are the pros and cons.
- Anonymous and untraceable so sugar babies can receive payments without their personal information being tied to the transactions
- No money actually changes hands
- The chance that your allowance amount can multiply
- Require some tech know how to handle – both sugar daddy and baby need to know how to use and store it properly
- Cryptocurrency values fluctuate a lot and not always upward
- It’s more difficult to pay living expenses and buy things you need with crypto
- It’s irreversible so if you make a mistake, there’s no undoing it
Is Cryptocurrency a Safe Way for a Sugar Baby to Get Paid?
Bitcoin and other cryptocurrencies are no longer the sole domain of drug dealers and money launderers. In fact, it’s a great way for a sugar baby to get paid.
But it’s certainly not for every sugar baby. We’d actually only recommend getting paid in cryptocurrency if:
You know how to use it. A tech savvy sugar baby who has at least a functional understanding of cryptocurrency and the technical know how to use and properly store it.
You don’t need it for everyday expenses. Keep in mind that cryptocurrency is not the most convenient form of money for everyday transactions.
You want to save and invest. Crypto is a volatile currency. Which is really awesome news if you had Bitcoins in January 2013 (when they were worth $14) and kept them until now (when they’re worth over $20K+). But if you get caught at a time when they’re sliding in value and you need to withdraw them to pay your bills – that’s not a happy transaction.
We’d recommend Bitcoin for sugar babies who have enough to cover basic living expenses and want to use an anonymous, 100% independent currency to receive payment as a backup savings and investment account.
As for sugar babies who need all of the allowance for living expenses – skip crypto.
Tips on Receiving Cryptocurrency from a Sugar Daddy
Here’s a quick list of the most important tips you’ll need to know if you’re planning on getting paid in cryptocurrency:
Do your research. Read about cryptocurrency so you have a good understanding of what you’re getting into.
Be able to HODL. It doesn’t have to be forever or even years, but cryptocurrency is so volatile and you don’t want to be in a situation where you have to sell it for less than it was when you received it.
Use the main ones. Whether you want to use it as a method of payment or you want to save it as an alternative investment, we recommend you go for the main cryptos, i.e. BTC and ETH instead of alt coins.
Never send BTC. One of the most common ways sugar daddy scammers will ask to be paid is via Bitcoin. Why? Because they know it’s irreversible and virtually untraceable. If a potential sugar daddy ever asks you to send him Bitcoin for any reason – he’s a scammer. Don’t do it.
How Do Sugar Daddies Transfer Money?
Sugar daddies can transfer money in all the ways described above. You already know that. But before we end this article, we need to talk about the ways in which a sugar daddy will NOT transfer money.
If a potential sugar daddy ever suggests transferring money to you in the following ways, it’s guaranteed that he is a scammer. Here are the main ways that a sugar daddy will NOT transfer money.
#1. Where YOU Need to Pay a Fee
Here’s one way a legit sugar daddy will NEVER ask to transfer money – in a way where you need to pay a fee. That means a real sugar daddy will never:
- Ask you to pay a clearance fee to receive a transfer
- Need you to transfer money to prove your account is real or you’re genuine
In no way will a legit sugar daddy ever send you money in a way that requires you to pay a small fee to receive it. If there are transaction fees associated with sending you allowance, a real sugar daddy will pay those. No questions asked.
If you’re ever asked to pay fees in order to receive your allowance, it’s 100% a scam.
#2. In a Convoluted Way
Every sugar baby will most likely run into a potential sugar daddy or two who offers allowance – but you have to jump through some strange hoops to receive it. Like:
- He needs you to log onto his bank account and transfer money to yourself, pay off your bills, and send money to another account he has
- The potential sugar daddy can’t pay you, per se, but he’s going to give you stock options in his new start-up company
- He’s going to send you a huge check but you need to buy a gift card and share the details with him, send him money via Western Union, or transfer Bitcoin to his wallet
Do not do any of the above. Sugar daddies do NOT transfer money like that. But scammers do.
In general, receiving money from a sugar daddy is a straightforward process. You discuss the nitty gritty, you decide on the terms of the arrangement, and then you figure out how you will receive your allowance or PPM.
It’s straightforward with a real sugar daddy because real sugar daddies have access to modern banking. They can make their own transfers and pay their own bills. And they definitely don’t need to have their sugar babies send them money for any reason.
#3. Where You Need to Do Something in Return
When a real sugar daddy has entered into an arrangement with you, he knows that financial compensation is his end of the deal. And he’ll take care of it. He won’t need you to do something in return, like:
- The sugar daddy sends you a big payment – BUT you then need to send them a gift card or other payment
- He sends you a pre-paid gift card with more money than you agreed on for allowance so he needs you to transfer him a part of it
Overall, when it comes to receiving money from a sugar daddy, it should feel comfortable and be a straightforward process. Once it starts veering into the “Huh? This is strange…” territory, that’s because no real sugar daddy would ever transfer money that way.
The Final Word
As long as you’re careful to avoid the sugar daddy scammers, there is really no right or wrong way to receive your allowance. Just go with the option you’re most comfortable with and remember to always do your research!