Ways to Receive Money

By Brook

Jul 09, 2016

Newbies and experts alike share this Sugar Baby question: what is the best way to receive funds from your Sugar Daddy? This is definitely debatable, so I’ll share some facts about ways to receive money and let you come to your own conclusions.


Despite our best efforts, there are people on SeekingArrangement, and everywhere on the Internet who might want to scam you. A classic model of this is someone sending you a fraudulent check or money transfer, then asking you to return only a portion of it, or asking for your password to verify. This is a scam! Never, ever ever ever ever ever send money or private passwords to a Sugar Daddy! You’re doing it wrong!


I’m going to break it down real simple. Money you receive from Sugar Daddies is in the form of a gift – meaning it is untaxed. If you are an employee you are taxed, however a Sugar Daddy can give you up to $14k in a year and not even have to report it. After $14k, he does need to report it, but it is still a gift and remains untaxed. “But what about the IRS coming after me for depositing too much money?” That is the point of having him report the gifts, and you can direct them to your SD if they have questions.

Ways to Receive Funds

Cash – Cash is king, and is probably the crowd favorite way to receive an allowance.

Bank Transfer – If you’re in a long term arrangement with someone you know and trust, this would be your best option. There is no hassle or reminding him to make the transfer if you schedule it automatically.

Note, giving out your routing and account number to someone you have an established arrangement with (meaning you have met in person several times and have been in a relationship for some time) is NOT in any way unsafe. He cannot do anything other than deposit funds with that info. It’s on the bottom of checks, after all. Let me repeat my previous sentiment that you should NEVER send passwords or usernames to ANYONE for any reason.

Let me also make note of the different kinds of transfers. A standard bank transfer often clears by the end of the day and usually does not have a fee attached. A wire transfer is a different service entirely, and actually happens in real time with a real person, requiring a high fee. Chances are he’s not paying you via wire.

PayPal – This one is easy because all he needs is your email address, however the name you use for PayPal may be visible on his bank statement.

Venmo – Very similar to PayPal and Google Wallet, Venmo allows you to transfer money to anyone in your cell phone contacts. Make sure to download the app and have it ready as an option in case he decides to surprise you.

Square – These little credit card readers prove useful when Daddy doesn’t have any cash. Just be sure it’s set up to receive gifts, and not payment for rendered services.

Gift cards – For the Sugar Baby who’s concerned with privacy or doesn’t want a paper trail, gift cards are a great option. The AMEX or Visa ones can be spent anywhere, and used to pay bills.

Stock – If you’re feeling like taking a risk, have your SD buy some stock in your name. This can be seen as a very business savvy move, especially if he’s into playing the stock market.