There are many different services that now make it easy to email invoices to clients and allow them to pay by entering their credit card information online. Setting up an account with these online payment services is simple, and most have basic invoice templates that allow you to just plug in your information and send invoices via email within minutes.
Paypal is our recommendation for simple invoicing with online payment processing. Paypal allows you to accept all major credit cards or have customers pay with their paypal account directly. Their easy to use templates will have you sending invoices in no time and Paypal’s reputation provides your customers with the assurance that their payment information (credit card number) will be secure.
Here’s how it works:
- Go to paypal.com and set up an account. It takes about 5 minutes and you’ll need your business info such as address, bank account number, etc.
- Click on the “selling tools” button and then “manage invoices”, click “create invoice,”enter your information and the client’s email, and send it.
- The client receives an email with a link where they can pay using their credit card or paypal account. You can see what that invoice looks like on Paypal’s invoice overview page.
- Once the client pays, you receive the money into your paypal account within 2 to 3 business days. You can then withdraw the money from your paypal account into your bank account, or use the money to pay for things using your paypal account.
There are no setup or ongoing service fees when using the basic version of paypal. Instead, they take a percentage of each transaction. Paypal charges 2.9% of total payment plus a $.30 fixed fee per transaction. If your volume of sales tops $3,000 per month, that transaction percentage drops. A full breakdown of merchant rates can be found in our full guide to credit card processing fees.
Want More Professional Invoices?
If you want more professional looking invoices then you may want to consider using Freshbooks for sending your invoice. They have more advanced customization than paypal offers but customers can still use paypal to pay the invoice. To learn more read our review of Freshbooks and other online invoicing softwares.
Want Quickbooks or Other Accounting Integration?
If you use an accounting software like Quickbooks, Quickbooks offers the ability to issue invoices and accept online payments through their program as well. In addition, you can send invoices through Quickbooks while still accepting payments through Paypal’s payment wizard (Instructions From Paypal).
If you use Quickbooks as your merchant account provider instead of Paypal they charge 2.4% of total payment + $.25 fixed fee per transaction if your overall sales are less than $3,000 a month or 1.75% of total payment + $.25 fixed fee per transaction if more than $3,000 for online payment processing.