How does PayPal Invoicing Work? (All You Need To Know)

Invoices are documents used to itemize and record transactions between sellers and buyers. Invoices are easy ways for sellers to keep track of what their customers owe and how much they have paid. It also protects a seller’s business by providing a paper trail.

Therefore, if you are a seller will PayPal you may be wondering, what is PayPal Invoicing and how does it work? I did some research into PayPal Invoicing and this is what I learned!

How does PayPal Invoicing Work In 2022?  ‌

PayPal invoices are simple and fast to use in 2022. To create an invoice you just go to your PayPal account and click “Create New Invoice” in your payment section. Next, enter the price of the item, and the customer’s emails to create an invoice. Then, click “Send” and the customer will receive an email from PayPal with a link.

If you want to learn more about how to create and send an invoice with PayPal, how to pay a PayPal invoice, and more, then continue reading!  ‌

How do you Send Someone a PayPal invoice?

To send a PayPal invoice to a customer you first have to create the invoice. Therefore, to create and send an invoice with PayPal:

  1. First, you need to log in to your PayPal account
  2. Second, click “Payment” and then click “Get Paid”
  3. Next, click “Send Invoice”
  4. Then, click “Invoicing” and click “Create New Invoice”
    • Here is where you will enter the customer’s email address and add the items or services they purchased, how many they purchased, and the amount they owe.
    • PayPal also gives you the option to add personal notes, discounts, terms, and conditions, or anything else you want your customer to know or have.
  5. After you are finished adding all the information, click “Preview” to view how the invoice will look
  6. Finally, when you are done previewing the invoice, click “Send”

Furthermore, once you click “Send” PayPal will send the customer an email with a link to the invoice.

Additionally, your customer will also get notifications in their PayPal account about the invoice.

How do I Pay a PayPal Invoice?

To pay an invoice on PayPal:

  1. First, log in to your PayPal account and go to the invoice in your PayPal notifications or go to your email address and find the invoice email from PayPal
  2. Next, click “Pay Now”
  3. Then, if you went through your email, log in to your PayPal account
  4. After, review the invoice and click “Pay Now” to pay with your already saved preferred PayPal payment method

Additionally, if you don’t have a PayPal account, you can create one or pay the invoice with your debit or credit card by manually entering the card information.

How Much Does PayPal Charge to Send an Invoice?

How Much Does PayPal Charge to Send an Invoice?

Unfortunately, PayPal does charge a fee for creating and sending invoices to your customers.

However, the fee is automatically taken out of the funds you receive from your customer.

Moreover, PayPal charges 2.9% of the transaction you receive plus a fixed fee for every invoice.

Furthermore, the fixed fee PayPal charges is $0.30. Fixed fees depend on the currency you are receiving.

Additionally, here is more information about PayPal fees. Furthermore, you should check every so often to see if PayPal has changed its fees.

How Long does an Invoice take to Process?

Payments process immediately into your PayPal balance when your customer pays the invoice.

However, how long it takes for your customer to pay the invoice depends on how long of a period you give them to pay it.

Furthermore, on PayPal, you have several options to choose from for how long to give your customer to pay the invoice.

Additionally, you can adjust the time for each customer and each product if you feel the need.

Moreover, some of the terms you can choose from on PayPal are:

  • Net 30 – This allows the customer 30 calendar days from the invoice date to pay the invoice.
  • 2/10 Net 30 – This means your customer has 30 calendar days to pay the invoice from the invoice date, but the customer can receive a 2% discount if they pay the invoice early.
  • End of Month (EOM) – This means the invoice payment is due at the end of the calendar month.
  • 15 MFI – This means the invoice payment is due on the 15th of the month after the invoice date.
  • Upon Receipt – This means the invoice payment is due as soon as the customer receives the invoice.

To learn more, you can also read our posts on whether or not PayPal exchanges currency, PayPal confirm receipt, and what is the age requirement for PayPal.

Conclusion‌ ‌ ‌

Fortunately, using PayPal invoicing is simple. Moreover, to create an invoice on PayPal you only need to enter your customers, email address, the items they purchased, and the amount they owe.

Furthermore, once you send the invoice to your customer they will receive an email from PayPal with a link to the invoice, along with a notification on their PayPal account. Additionally, once your customer pays the invoice you will receive the funds instantly.

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Marques Thomas

Marques Thomas graduated with a MBA in 2011. Since then, Marques has worked in the retail and consumer service industry as a manager, advisor, and marketer. Marques is also the head writer and founder of QuerySprout.com.

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