Want to learn how to create and send a PayPal invoice? Follow our guide to learn how to quickly and easily make one.
You may have used PayPal to make a payment, perhaps for an app or to pay a merchant or for peer-to-peer payments. But did you know you can also request that someone pay you? An invoice allows you to get paid easily and promptly whether it’s for something business-related or a personal expense. We can show you how PayPal has tools to make invoicing easy.
Why is Paypal Popular?
Despite the entrance of numerous digital payment competitors like Payoneer in the industry, PayPal still remains the number 1 most trusted and used digital payment provider. It was one of the early online payment options so most people have had some experience using their service. Paypal provides a flexible, secure, and convenient way to shop, pay bills, and transfer money all over the world.
PayPal provides a layer of protection for buyers. They allow customers to feel comfortable using their credit cards online to pay others, especially if it’s an unknown website. Simply sign up for an account and add your bank or credit card information. Then you can use your account to pay others and accept payment.
Creating an Account on PayPal
Whether or not you are new to using Paypal, you’ll need to know about the options they offer. You can sign up on PayPal via the website or the mobile app. You can choose from two types of accounts:
The major difference between the two is that a business account allows you to make payments to those who do not have a PayPal account. This means that you can send salaries to employees from your PayPal account directly to their bank account.
On the other hand, a personal account is limited to transferring payments to other PayPal users only. The upside is that if you own a personal account and wish to switch to a business account, you can always upgrade. This only requires you to enter some extra information.
How to Send a PayPal Invoice
PayPal Invoice for Business Accounts
One of the major advantages that PayPal has over other digital payment methods is that global transactions are extremely fast. The recipient receives money within 24 hours, whether they live in the same city or another country.
Sending an invoice through a business account is not too different from sending an invoice via a personal account. Here’s what you need to do:
- Enter your login credentials (username and password) to access your business account.
- Go to tools (you’ll find it on top of the webpage) and then select the ‘invoicing’ option.
- Click on the option ‘Create invoice’.
- You will now be required to add the recipient’s details. Make sure you have their basic information on hand i.e. email address, shipping address etc. Add the required information in the ‘customer details’ option.
- This is the most crucial and main part of the invoice. You have to select the items, quantity and price. An extra or fewer zeros could completely change the amount so make sure you recheck before confirming.
- Go through the entire steps once to check for mistakes. Correct any errors and press send.
The recipient will receive confirmation of the payment via email, so make sure you type in their work or primary email. You can either pay directly to PayPal, PayPal credit, credit cards or debit cards. However, PayPal credit requires consumer credit approval beforehand.
PayPal Invoice for a Personal Account
- Enter your login credentials (username and password) to access your personal account.
- At the top of the homepage, you’ll see the ‘send and request’ option which will direct you to the payment options.
- Click on create invoice. This will require you to enter all the details such as recipient email address, invoice number (PayPal automatically generates but you are also allowed to edit it), details about quantity, amount and price and taxes, discounts, shipping charges etc.
- Before you hit send, you’ll see a preview mode with all your details. Check your information for any errors and edit anything that requires changes. Click send to confirm payment.
A great feature by PayPal is that after you enter your details, you can choose to send it right away or schedule the payment to be sent at a specific date and time. You can also tick the recurring payment option which allows you to send the payment frequently. You can also save the invoice and send a link to your recipients for confirmation.
What are the Fees for sending a PayPal Invoice?
When you send an invoice, you’re charged a small fee once you receive the money. The fee is automatically deducted from the payment that you receive. Fees can change but generally speaking, there is a fee of 2.9% plus a fixed rate is charged based on the dollar. Paying outside the US is charged 4.4% of the transaction, plus a fixed rate depending upon the currency.
Now you know how to send an invoice on PayPal. It’s an easy and hassle-free process. Whether you use a business or personal account, you can create an invoice in just under five minutes. Plus, as a digital platform, it is a secure and reliable form of sending national and international payments.