• 1. Choose the payment methods your clients use
  • 2. Open a payment account

To accept online payments, decide which payment methods your clients will use, open an account with a payment provider, connect that account to your invoices so each one carries a way to pay, test it with a small payment, and then match each payout from the provider to the invoices it covers. The provider deducts its fees before paying you, so a payout is less than the invoices it covers; record the fees as an expense.

Billed publishes this page. Fees, payout timing and the methods a provider supports vary by provider and country, so check each provider's own pricing and terms before you sign up.

This page covers setting payments up and keeping the records straight. For how card payments move between banks, see what is payment processing. For the accounts and technology involved, see what is a merchant account and what is a payment gateway. To compare invoicing apps that take payments, see invoicing apps with online payments.

1. Choose the payment methods your clients use

Ask your regular clients how they prefer to pay, and start with those methods:

Keep a way to record payments that arrive outside your provider too, such as checks or bank transfers.

2. Open a payment account

You can accept cards through your own merchant account with a bank, or through a payment provider that signs you up as one of its merchants. The merchant account guide explains the difference. For two of the providers small businesses use, see Stripe vs PayPal.

When you sign up, have your business details and bank account ready. Before you choose, read each provider's pricing page for the fee on each payment method, any fixed fee per transaction, how long payouts take and what happens with refunds and disputes.

3. Connect the account to your invoices

Connect the provider to the tool you invoice from, so each invoice carries a pay button or link. Then a client can pay from the invoice without asking for your bank details. If you don't use invoicing software, you can send a payment link from the provider's own dashboard, but you'll match each payment to its invoice by hand.

4. Test it before a client does

Send yourself, or a colleague, a small test invoice and pay it with a real card. Check that:

  • the pay button works on a phone and a computer;
  • the payment shows in your provider account and the invoice is marked paid;
  • you know how to refund it, and the refund shows in both places.

5. Tell clients how to pay

Put the pay link on every invoice, and mention it in the email you send with the invoice. See how to send an invoice. If an invoice stays unpaid, see how to follow up on unpaid invoices.

6. Match payouts to invoices

Each payout from your provider can cover several payments, after fees. When it reaches your bank account:

  1. List the invoices the payout covers, from the provider's payout report.
  2. Check that the invoices add up to the payout plus the fees.
  3. Record the fees as an expense, so your income shows the full invoice amounts.

Then compare your bank statement with your records; see what is bank reconciliation. To lower what you pay, see how to reduce payment processing fees.

Worked example: matching one payout

The business and figures here are a sample, and the fee rate is invented for this example. It isn't a real or recommended rate.

A designer's clients pay three invoices by card in one week. The invented fee is 2.5% of each payment plus $0.25.

  • Invoice 1041: $800.00. Fee: $800.00 × 2.5% + $0.25 = $20.00 + $0.25 = $20.25.

  • Invoice 1042: $1,500.00. Fee: $1,500.00 × 2.5% + $0.25 = $37.50 + $0.25 = $37.75.

  • Invoice 1043: $450.00. Fee: $450.00 × 2.5% + $0.25 = $11.25 + $0.25 = $11.50.

  • Invoices paid: $800.00 + $1,500.00 + $450.00 = $2,750.00.

  • Fees: $20.25 + $37.75 + $11.50 = $69.50.

  • Payout to the bank: $2,750.00 − $69.50 = $2,680.50.

The designer records $2,750.00 of payments against the three invoices and $69.50 of fees as an expense. The $2,680.50 deposit then matches the bank statement.

Where Billed fits

Billed's accept payments page says "Billed integrates with Stripe to enable online payments on invoices" and "Only Stripe standard rates apply." It also says: "Add your Paypal account to Billed to start accepting payments via Paypal on your invoices." For payments outside those, it says you can "Keep track of all the payments from offline sources like checks, cash etc."

Billed's integrations page says: "Take online payments on your invoices with Stripe or PayPal, and connect Billed to other apps through its app on Zapier." Billed's invoice software page says: "Connect your Stripe account and every invoice you send gets a pay button, so clients can pay by card. Connect PayPal to add a PayPal option as well." For invoicing itself, see Billed's invoice software.

When this guide isn't for you

This guide is for small businesses and freelancers taking payments on invoices. If you sell through an online store checkout, handle very high volumes, or need to store card details yourself, talk to your payment provider about the requirements for your setup.

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Frequently Asked Questions

How do I start accepting online payments?

Choose the payment methods your clients use, open an account with a payment provider, connect it to your invoices so each one has a pay link, and test it with a small payment before you send it to clients.

Do I need a website to accept online payments?

No. You can put a pay link on each invoice you email, or send a payment link from your provider's dashboard.

Why is my payout less than the invoices my clients paid?

Your provider deducts its fees before paying you. In the sample on this page, three invoices totaling $2,750.00 produce a payout of $2,680.50 after $69.50 of invented fees. Record the fees as an expense.

How do I match online payments to invoices?

Use your provider's payout report to list the invoices each payout covers, check that they add up to the payout plus fees, and record the fees as an expense.

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