Want to know how to use a PayPal invoice to charge clients? It’s quite simple, but there are a few things to know before you use PayPal invoices, such as the limitations, and the alternatives to PayPal invoices.
How to Use a PayPal Invoice System
Once you created a PayPal account, go to into your PayPal and sign in.
- You will see a tab that allows you to manage invoices.
- Click on Create Invoice on the top-right.
- Input the details for your PayPal invoice.
Depending on the company and country, the details needed will differ, but the PayPal invoice system does allow you to fill out everything you need, with ease.
You then finalize the invoice, and it’s sent to your recipient. You can also copy a link to it, and send it directly to the recipient.
Some of the benefits of using PayPal invoices?
- Almost everyone uses PayPal right now.
- PayPal makes it easy to pay invoices.
- PayPal automatically tracks all your invoices making your life easier.
…But PayPal has one big flaw.
The PayPal invoice fees.
See, PayPal is a free platform, and since there’s no subscription to it, and since there are no ads on, if it’s not selling your data, it must have fees in order to make a profit.
The fees? 2.90% + 30 cents.
How does that look?
Well, an invoice worth $300 would give you 289.45.
That’s $10 you lose per $300 invoice.
Now, when PayPal started, this is was a super-efficient system, and it revolutionized how we go about selling on the internet.
…But going into 2021, the PayPal invoice system while comfortable to use, is not as effective to use as it used to be.
- PayPal’s “low invoice fees” that we already mentioned, aren’t low compared to new services out there.
- PayPal has poor customer support.
- If you have a new account, your funds can sometimes get frozen for verification.
- A lot of verification needed. You need to connect your bank which requires a few days, and so on.
- Funds don’t go directly to your bank which means you have to wait longer to get them.
- PayPal’s currency exchange is pretty bad.
It’s a relatively new platform that makes it even easier to transfer money than on PayPal with less verification, and the ability to transfer money directly from your card to someone’s bank, rather than to a PayPal account which then requires for transferring to a bank.
…Most importantly, TransferWise comes with significantly smaller fees.
Instead of $965.65 on a $1000 invoice, you will get 995.29, and even more, if your client chooses the non-instant payment option.
How about MailTag?
Well, with Transferwise, you will need to generate your own invoice. Once you send one, without MailTag, you won’t know if the invoice was opened, and whether your invoice isn’t getting paid because your client didn’t see it yet, or whether he/she chose not to open it.
MailTag is an email tracking extension that allows you to track when your emails are opened, re-opened, what links are clicked on in them, and where your emails are opened, as well as a tool for sending automatic follow-ups, in an event where your email is not opened.
That’s How to Use a PayPal Invoice
Super easy to use and very comfortable to use.
…But if you plan to send a lot of invoices, Transferwise might be a much better option for you. It has a better currency exchange, the money arrives right to your bank, and the fees are MUCH LOWER.