The paperwork involved with selling goods or services online can be a bit daunting. You’ll need to issue invoices to make sure you’re paid properly, and as your business grows you’ll also have to find ways to keep track of payments, and chase any customers who are late to pay their dues.
Note:- Now,you can easily earn free Paypal Gift card to earn money in you PayPal account.
PayPal invoicing can be a quick and easy way to issue invoices, and receive payments from customers and clients from all around the world. However, this service comes at a cost - especially if you work in a global marketplace and sell to people from other countries.
This article will cover:-
- PayPal invoice fees and charges
- International invoice fees and costs
- How to create a PayPal invoice
- How to pay a PayPal invoice
- How PayPal invoicing works
- Buyer protections
Make sure you understand the costs involved before you choose the invoicing platform that’s right for your business. Here’s a handy guide to get you started.
How much does PayPal charge for an invoice?
PayPal doesn’t charge fees for setting up and sending invoices, or for cancelling them. There’s no monthly or fixed charge, but if your customer pays online, there’s a fee for each invoice paid
As you can tell, anything involving additional currencies gets really expensive quickly. It’s hard to figure out how much you’re really paying unless you look at independent research studies showing the real cost of PayPal business international transfers. But we’ll talk more on the additional costs if the payment is international, or involves any currency conversion, later.
How to create an invoice on PayPal?
To create an invoice using the PayPal business website, you’ll need to take the following steps:-
- Log in to your account
- Click ‘tools’ which is in the toolbar on the top of the page
- Select ‘invoicing’ - from here you can choose to create and manage all your invoices
- To create an invoice, select ‘create invoice’ and enter the email address of the person you’re billing
- You can then enter all the invoice details, such as the description, the amount and currency being billed. You can even add a custom logo, use a template, and leave a note for your customer
Helpfully, each invoice to a specific customer is assigned an invoice number automatically. You can alter this number if you prefer - but it can be a useful way to keep track which invoices you have sent to which customers.
Also, if you prefer a little more instruction, there’s a handy video to walk you through the process of sending a PayPal invoice, available on the PayPal website.
If you prefer a mobile experience, you can download the PayPal business app and send your invoices from there. In both cases, templates are preloaded, and can be customised however you’d like. Add your logo, a delivery message, or a thank you for your customer, for example.
How to send an invoice on PayPal?
If you’re sending an invoice from the PayPal website, follow the steps above to create your invoice. Then you can preview it if you like, to make sure it includes all the details you need - and simply hit send. It’s then delivered directly to your customer, using the email address you’ve already entered.
How to pay an invoice on PayPal?
Once you’ve sent the invoice, your customer will receive an email notification. They can simply click through from this email, to view and pay the invoice within PayPal. If they’d rather pay off-line that’s possible too.
If you’re concerned about the PayPal international fees and the currency conversion fees, which add up quite quickly for those international payments, you’re almost always better off using a cheap and transparent provider like TransferWise. An independent case study has even shown that, in the US, you can save, on average, up to 8x as much by using TransferWise over PayPal business for international transfers. In the UK, average savings jumped to 9x as much.
Even if your customer chooses the offline payment option - choosing to pay you outside of PayPal, you can still reconcile the invoice within your PayPal business account to show it as paid and make sure your accounts stay accurate.
Paying an invoice with debit or credit card
Once an invoice has been received, your customer can choose how they want to pay it. If they already have a PayPal account they can choose to pay using PayPal balance or a linked bank account.
However, even if they don’t have a PayPal account, they can pay using a credit or debit card, or choose to pay off-line with cash, a check, or with TransferWise if they’re paying the invoice from a different currency.