Looking for the best way to charge clients and curious about how do PayPal invoices work?
In this guide, we’ll go over how they work, their benefits and negatives, and how to track your PayPal and non-PayPal invoices.
How do PayPal Invoices Work
Back when PayPal started, and even just a few years ago, payments and transferring of funds between others wasn’t efficient nor cheap.
If you wanted to send funds between different continents, you had to wait a lot of time, and you had to pay some heft fees.
When PayPal came along, eventually if fixed that problem.
Payments were instant. All you had to do is to transfer money to your bank account from PayPal, if you didn’t want to use your funds to pay for something online. And that kind of transfer was much quicker.
How do PayPal invoices work?
- You go into PayPal followed by signing in.
- Click on manage invoices.
- Now press on Create Invoice on the top-right.
- Provide your invoice details.
The great thing about PayPal invoices is that the process is automatic. There’s no need to manually input that someone paid your invoice. It’s all done by PayPal for you.
Benefits and Negatives of Using PayPal Invoices
- PayPal automatically tracks invoices paid and generates insights.
- Almost everyone uses PayPal making it a great tool for business.
- Super easy to send reminders.
- Invoices connected with the platform.
- You receive funds right away.
- Easy refunds.
- The “low fees” aren’t that low compared to some newer services coming out such as TransferWise.
- Customer support is pretty poor.
- On new accounts, funds can sometimes be frozen for a few days.
The biggest issue with PayPal invoices right now? For sure the PayPal fees.
If you send an invoice for €300, you are only going to receive €289.45. That’s a €10.55.
Not a lot?
An invoice for €1000? That’s €965.65.
You are missing a big chunk of your income.
TransferWise? That’s 995.29 and will arrive at your bank today.
On PayPal, you will need to withdraw money first.
However, if you are fine with your client paying you in a few days, the transfer cost with TransferWise can be as low as €0.63.
If you only send an invoice every so often, PayPal is a fine platform for that, but if you send a lot of invoices, over the long-term, you are going to lose several thousand on fees, and it gets even worse when it comes to currency conversion.
How to Track PayPal Invoices to Get Paid On Time
Benefits of tracking invoices? That you will know if someone opened them, or if they didn’t pay because they haven’t seen it yet.
How do you do it? By using the MailTag Chrome extension.
Add it to your browser, connect your email account, and the next time you send an email with the link to your invoice, you will know when your email is opened, and whether the links in that email were clicked.
Meaning that you will know if your client simply didn’t see your invoice email, or whether he opened it, but didn’t pay. And based on that information, you can send follow-ups, to get your invoice seen.
MailTag is also a 100% free, forever, email signature generator that allows you to create email signatures that work, in 60-seconds or less.
That’s How PayPal Invoices Work
PayPal invoices? They made invoices easier around the world.
Whether you send PayPal invoices or use a different method, with MailTag you’ll be able to track what is happening to your invoices, so that you can know, when clients are about to pay, or if they never even saw the invoice yet.