Featured Offer: 30 days free, plus 50% off for 3 months from Patriot Payroll
Patriot is a top pick for payroll with benefits like affordable pricing, unlimited payrolls, US-based support, and free direct deposit. Getting started is now a better deal than ever with 30 days free, plus 50% off for 3 months after that.
These services make invoicing easier and more convenient than ever and allow you to get paid faster than you would with manual invoicing.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
WRITTEN & RESEARCHED BY
Erica SeppalaErica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
Editor & Senior Staff Writer
Last updated onUpdated
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
REVIEWED BY
Shannon VissersShannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
Expert Contributor
Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
Stop wasting time, energy, and office supplies with manual invoices and cashing checks, and consider online invoice payment processing. Sending online invoices and accepting online payments benefits you and your customers. And the best part? You can get paid faster — so why not give it a shot?
Whether you’re already using accounting software and want an integrated solution or you’re starting from scratch, there’s an online invoice payment solution for you. We’ll look at the benefits of online payments, the invoicing cycle, and a few great options to consider for your business. Keep reading to learn more about getting paid faster and easier than ever with online invoice payments.
Invoices typically contain a list of the products or services purchased, individual pricing (such as charges per hour or a set fee), the total sum due, and a due date or payment terms.
As a small business owner, you may send invoices to your customers for products or services you provide. You may also receive invoices from vendors, suppliers, and other businesses when you purchase supplies, inventory, equipment, or other products or services needed for business operations.
An “invoice payment” is a payment made toward the sum of this invoice. For example, if you receive an invoice for $100 for supplies, the $100 payment you submit is the invoice payment.
How To Accept Online Invoice Payments
There are a variety of ways to accept invoice payments. A business may take cash in person, a personal check, or a money order. However, many businesses are using technology to simplify invoice payments.
Some offer the option of paying by phone using a virtual terminal. Others are investing in services and software that allow customers to pay their invoices online with a debit card, credit card, ACH payment, or even mobile payment services, such as Apple Pay.
We’re going to focus our attention on online invoice payments. If you aren’t offering this option to your customers, keep reading to learn why this method is necessary for your business and how to get started.
Why Online Invoice Payments Are A Must
Why should your business accept online invoice payments? Manual invoice creation, slow shipping times, delays by accounts payable and accounts receivable departments, invoicing errors, and waiting for the check can drag out the invoicing process. In other words, it can potentially take weeks to receive payment for products or services that have been provided.
A study by FIS and Amalto shows that 39% of invoices in the United States are paid late. Of these late invoices, 61% are delayed due to an invoicing error. The study also shows that 11% of customers never receive an invoice.
Concerned about spending money to automate your invoicing process? Your costs could actually be less by implementing online invoicing. In 2010, according to an article on Billtrust on how much invoices cost, a company using a high level of automation paid $6.31 to process an invoice, while companies with low levels of automation spent nearly $16 — a difference of nearly 250%!
The Benefits Of Online Invoice Payments
Still not convinced? Let’s break down the many benefits of online invoicing for your business:
Same-day invoice creation
Save money on printing & shipping supplies
Multiple payment options for customers
Get paid faster
No paperwork
Invoice tracking
Easily edit & resend corrected invoices
Save time with automations like recurring invoices & payment reminders
Customize invoices with logos & branding
Send invoices on the go with mobile invoicing
Reduce invoicing errors
View invoicing reports
10 Best Online Invoice Payment Processing Options For Small Businesses
Ready to start accepting online invoice payments? Start your search with these top payment services, including payment processors, merchant accounts, and payment gateways. These services make invoicing easier and more convenient than ever while also allowing you to get paid faster than you would with manual invoicing.
CDGcommerce: Most Affordable Online Invoice Payments
Why We Chose CDGcommerce For Best Invoice Payment Processing
CDGcommerce is a merchant services provider that offers many great features at competitive pricing with no hidden fees. Notable features include a free payment processor, multiple pricing options, processing for high-risk businesses, and a free virtual terminal. You can also add on mobile payments, credit card terminals, or a traditional POS system at competitive prices.
CDGcommerce also offers exceptional customer support, including 24/7 phone support. Its customer service and top-quality products have allowed this company to hold a 97% customer retention rate. Its public reputation is excellent, with very few negative customer reviews.
CDGcommerce Pricing
CDGcommerce has numerous pricing plans. This includes One-Rate plans with no monthly fees, Interchange Plus plans that range from $19 to $49 per month, and Membership plans that range from $49 to $199 per month.
Payment Processing Costs
Payment processing costs vary based on the pricing plan you select. Processing costs for One-Rate plans start at 2.9% + $0.30 per transaction. Fees for Interchange Plus plans start at interchange + 0.25% + $0.10 per transaction. Fees for Membership plans start at interchange + $0.05.
Choose CDGcommerce If...
You operate a high-risk business and need payment processing
You want to work with a company that has excellent customer service
Why We Chose Stripe For Best Invoice Payment Processing
Stripe offers a variety of developer features that make it an ideal choice for online businesses, especially SaaS businesses or any business that accepts recurring payments. You have the option to use a Stripe plugin or integrate the payment service via one of its integration partnerships. You can use Stripe with your existing invoicing solution or send invoices through Stripe Billing.
Businesses can accept payments online, in person, or via mobile apps with Stripe. Stripe also has a comprehensive set of developer tools for quick and easy integration.
Stripe Pricing
There are no monthly fees to use Stripe Payments — you’ll simply pay processing fees. Additional processing fees apply if you use services such as Stripe Billing or Stripe Invoicing.
Stripe Features For Online Invoicing
Notable Stripe features for online invoicing and payment processing include:
Subscriptions, trials, & recurring billing with Stripe Billing
Automated payment reminders
Support for 135+ currencies
Numerous integration options
Shareable payment links
Mobile SDKs
Payment Processing Costs
Stripe charges a flat rate of 2.9% + $0.30 for credit card transactions and 0.8% (capped at $5) for ACH transactions.
If you use Stripe Invoicing, the flat rates above apply plus an additional 0.4% to 0.5% per paid invoice. For recurring invoices, you’ll need to sign up for Stripe Billing, which will cost 0.5% to 0.8% per recurring payment and/or one-time invoice.
Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.
Pros
Easy to use
Excellent mobility
Works with other Square products
Cons
Limited invoice customization
Not suitable for high-risk businesses
Why We Chose Square Invoices For Best Invoice Payment Processing
Square Invoices is part of the Square ecosystem and integrates seamlessly with other Square products, including Square POS and Square Installments. This free option is ideal for businesses that already use Square, but it's an easy transition for businesses that are new to Square, as well.
Square Invoices has a well-designed UI and is easy to use once you grasp everything Square offers. Square Invoices users like the ease of use, mobility, and customizability of invoices.
Square Invoices Pricing
There are no monthly fees to use Square Invoices. Sending invoices and accepting payments by cash are all free. However, you can upgrade to Square’s Plus Plan for $20/month for reduced processing fees and additional invoicing features.
Square Invoices has great features for online invoicing, including:
Automatic payment reminders
Recurring payments
Auto-scheduling
Add attachments, discounts, tips, and sales tax to invoices
Works with other Square products, including Square Installments
Customize the Square Invoices template with colors and logos
Request partial payments
Invoice tracking
Payment Processing Costs
Square’s online payment processing rates for invoice payments are 2.9% + $0.30 if you’re on the Plus Plan. Rates rise to 3.3% + $0.30 if you’re on the Free Plan.
Choose Square Invoices If...
You already use Square for other business purposes
You want basic, affordable invoicing and payment processing
Smaller to mid-sized businesses with a limited number of users
Pros
Easy setup
No hidden fees
Excellent customer service
Cons
Requires a FreshBooks accounting subscription
Why We Chose FreshBooks Payments For Best Invoice Payment Processing
FreshBooks Payments integrates with your FreshBooks accounting software, allowing you to add an online payment option to your invoices easily. Payments are automatically recorded to your FreshBooks account, so there's no more worrying about reconciliation.
You'll also be able to take advantage of features such as recurring invoices and other automations. FreshBooks Payments also doesn't require a separate merchant services account. Transparent pricing, good customer support, and easy setup all add to the reasons why we like FreshBooks Payments.
FreshBooks Payments Pricing
FreshBooks Payments is available to FreshBooks users for no additional monthly fee — just pay for payment processing. However, you will need to have a FreshBooks subscription to use this feature. Subscriptions are priced at $21-$65/month.
FreshBooks Payments Features For Online Invoicing
Here’s what you’ll receive when you use FreshBooks Payments for online invoicing:
Scheduled payments
Recurring invoices
Partial payments
Request deposits from customers
International currency acceptance with Stripe
Invoice tracking
Mobile invoicing
Reporting
Payment Processing Costs
Payment processing using a credit card, debit card, or Apple Pay will cost you 2.9% + $0.30 per transaction.
Choose FreshBooks Payments If...
You already use FreshBooks for your accounting software
Your business needs good accounting software with built-in payment processing
Why We Chose QuickBooks Payments For Best Invoice Payment Processing
QuickBooks Payments has a lot of benefits, especially if you're already using QuickBooks software. The biggest draw for many users is that QuickBooks Payments seamlessly integrates with QuickBooks accounting software. Payments are automatically reconciled to invoices, helping you keep your books balanced.
QuickBooks Payments also has solid customer service and a good reputation among its users. If you already use QuickBooks or are looking for a full accounting and invoicing solution, QuickBooks Payments may be the right choice for you.
QuickBooks Payments Pricing
QuickBooks Payments uses a pay-as-you-go model, so there are no monthly subscription fees. However, you must either sign up for QuickBooks Money or a QuickBooks Online accounting plan.
QuickBooks Money is completely free — you only pay for processing. If you opt to sign up for QuickBooks Online, plans start at $35/month.
QuickBooks Payments Features For Online Invoicing
Here’s what to expect from QuickBooks Payments:
Get paid via debit cards, credit cards, and mobile payments
Recurring invoices
Scheduled payments
Instant deposits
Next-day deposits
Automatic reconciliation
Mobile invoicing & payments
Invoice tracking
Payment links
Payment Processing Costs
Payment processing costs are 2.99% for payments made by cards and digital wallets.
Choose QuickBooks Payments If...
You already use QuickBooks software
You want a combined accounting and invoicing solution
Why We Chose Dharma Merchant Services For Best Invoice Payment Processing
Dharma Merchant Services has a vast selection of products and services to help your business tackle accepting online invoice payments. This includes B2B processing, the MX Merchant virtual terminal and invoicing system, and MX Merchant Express mobile processing. If you need a payment gateway, Dharma has you covered by offering the choice between Authorize.Net and NMI Gateway.
Other benefits of Dharma include transparent pricing with no contracts, early termination, PCI compliance fees, or batch fees. This certified green business has an outstanding reputation among its customers and consistently provides solid customer support.
Dharma Merchant Services Pricing
Dharma offers four rate plans based on different business categories. Pricing ranges from $12-15/month plus per-transaction fees. Additional features such as ACH processing, invoicing, and recurring billing are available for an additional fee.
Dharma Merchant Services Features For Online Invoicing
These features make Dharma a standout for online invoicing:
Mobile processing
Virtual terminal
Online reporting
B2B program with discounted rates
Funding in two business days
Payment links
Customer database
Payment Processing Costs
Payment processing fees range from interchange + 0.10% + $0.08 per transaction to interchange + 0.20% + $0.11 per transaction.
Choose Dharma Merchant Services If...
Your business processes more than $10K/month
You want personalized service for a suite of tools including payment processing, virtual terminals, and POS
Why We Chose PayPal For Best Invoice Payment Processing
If you're looking for an all-in-one solution that's easy to set up and use for accepting online payments, look no further than PayPal. You can send invoices and receive online payments exclusively using PayPal's business products and services, or you can use a PayPal integration with your existing third-party solutions.
PayPal offers a variety of additional features and benefits for merchants, including customizable invoices with no monthly fees, mass payouts, and the PayPal Here mobile processing app. PayPal also has solid customer service and tech support and is viewed favorably by most users.
PayPal Pricing
There is no monthly charge to use PayPal Checkout for invoicing and payments. However, there are upgraded payment options — PayPal Payments Pro and PayPal Payments Advanced — that some users may be interested in purchasing for a monthly fee.
PayPal Features For Online Invoicing
PayPal’s standout features for online invoicing payment processing include:
Mobile invoicing
Invoice reminders
Track unpaid invoices
Convert estimates to invoices
Personalized payment links
Payment Processing Costs
PayPal’s payment processing costs are as follows:
2.99% + $0.49 per transaction for debit card, credit card, and Apple Pay payments
3.49% + $0.49 per transaction for PayPal, Venmo, and Pay Later payments
Choose PayPal Invoicing If...
You already use PayPal to send and receive payments
Why We Chose Authorize.Net For Best Invoice Payment Processing
Authorize.Net offers payment processing services that integrate with numerous third-party shopping carts. You'll also receive free virtual POS software (with a card reader available for a fee), a free mobile POS app (again, a card reader is available for an additional fee), the Customer Information Manager that allows you to store customer data securely, and Automated Recurring Billing.
Authorize.Net supports numerous payment methods, including credit cards, debit cards, Apple Pay, Chase Pay, Visa Checkout, and echecks. You'll also have access to excellent customer support, transparent pricing and sales, and no hidden fees.
Authorize.Net Pricing
Authorize.Net has two monthly payment plans: one that includes just a payment gateway and another that includes a payment gateway plus a merchant account. Each plan costs $25/month. Additional processing and daily batch fees apply (more on that later).
Authorize.Net Features For Online Invoicing
Authorize.Net has a wide range of features for online invoicing, including:
Users that subscribe to Authorize.Net’s payment gateway only will pay $0.10/transaction and a $0.10 daily batch fee. Users that subscribe to Authorize.Net’s all-in-one solution will pay 2.9% + $0.30 per transaction.
Choose Authorize.Net If...
You want to accept multiple forms of payments
You want a payment gateway backed with excellent service
Why We Chose Braintree Payment Solutions For Best Invoice Payment Processing
Braintree Payment Solutions stands out for its support of numerous payment methods, including debit, credit, ACH Direct Debit, Android, Apple Pay, Venmo, Google Pay, PayPal, MasterPass, and Visa Checkout.
Braintree also offers international processing and allows you to accept payments in over 130 currencies. Add in solid customer support and an excellent public reputation, and you'll quickly see why this solution makes our list.
Braintree Payment Solutions Pricing
There is no monthly cost for using Braintree Payment Solutions. You simply pay payment processing fees.
Braintree Payment Solutions Features For Online Invoicing
Standout features of Braintree Payment Solutions include:
Recurring billing
Third-party integrations
Account updater
Developer-friendly SDK
Simplified PCI compliance
Transaction reporting
Payment Processing Costs
Braintree’s rates are 2.59% + $0.49 per transaction for domestic transactions with a card or digital wallet. International transactions come with a 1% fee, and payments made on cards issued outside the US are also charged a 1% fee.
Exclusive Promo: Get your first month free with Stax. Learn More
Pros
Numerous add-ons available
Excellent customer support
Easy to use
Cons
Limited customization options
May be too expensive for low-volume businesses
Why We Chose Stax For Best Invoice Payment Processing
Stax offers a decent amount of features and is easy to use. It also offers a unique pricing structure. Where Stax stands out, though, is its customer support, which customers frequently praise. Stax offers 24/7 phone and email support and a variety of other resources to help you get the most out of the service.
Stax provides invoicing through Stax Pay. You can also add on other Stax merchant services (such as mobile payments, a physical terminal, and an online shopping cart) since they are all compatible to create your personalized payment solution.
Stax Pricing
Stax’s pricing is based on processing volume. Businesses that process up to $250,000/year will pay $99/month. Businesses that process $250,000 to $500,000 per year will pay $199/month. Businesses that process over $500,000/year will need to obtain a custom quote.
Add-ons including a QuickBooks integration, next-day funding, and custom branding are available for an additional fee.
Stax Features For Online Invoicing
Notable features for online invoicing with Stax include:
Scheduled payments
Recurring payments
Automated invoice reminders
Payment links
Mobile payments
Invoice tracking
Payment Processing Costs
Payment processing costs for Stax are $0.08 + interchange for swiped, dipped, and tapped transactions, and $0.15 + interchange for keyed-in transactions.
Choose Stax If...
Your business processes more than $10K/month
You want the stability of a full-service merchant account
Merchant Maverick has been researching the payment processing industry since 2009. Our writers have reviewed hundreds of credit card processors, merchant account services, and mobile payment apps, evaluating each provider carefully on several different metrics.
Weighted Rating Breakdown
Fees & Rates 35%
Contract 20%
Products & Services 15%
Sales & Advertising Transparency 15%
Customer Service 10%
User Reviews 5%
When comparing different payment processing companies and applications to one another, we consider numerous data points. Our experts start by comparing credit card processing rates, the presence of additional fees, contract length, sales practices, and the presence or absence of additional features and services, like point of sale software. Each provider is judged on its own merits and how well it stacks up to industry standards; then it is weighed against the other providers on the list.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure every company or application included meets our internal standards for quality and reputation. Any list of recommended payment processors on our site might contain a mix of standard merchant accounts, third-party payment processors, mobile payment devices, and high-risk payment processors, depending on what our expert feels is the best fit for certain scenarios or business types.
For additional details about Merchant Maverick’s review and rating processes, please refer to any or all of the following methodology pages:
How To Offer Online Invoice Payments For Your Customers
Online invoicing isn’t just beneficial for your business; it’s also more convenient for your customers or clients, especially if they can pay their invoices online.
To accept invoice payments online, you have a few different options:
Invoicing & Payment Processing Solution: Some invoicing programs already have built-in payment processing. Square Invoices, for example, allows you to send invoices and accept payments from your customers.
Payment Services: Software you’re already using in your business may also offer online invoice payments. If you use QuickBooks, try QuickBooks Payments, or FreshBooks users can give FreshBooks Payments a try.
Payment Gateway & Merchant Account Solution: You can also choose your own payment gateway and merchant account to process online payments. A payment gateway allows the customer to initiate the online payment. A payment processor confirms the information and processes the payment. Think of the merchant account as the middleman that receives the customer’s payment and transfers it to your business bank account.
Once you have your online payment solution set up, it’s time to send out your first invoice. Let’s explore the online invoicing cycle so that you know what to expect during the process.
Step 1: Create & Send The Invoice
Using your invoicing software, you’ll first create your invoice. Depending on your software’s customization options, you may use a basic template, or you could completely customize your invoice with your company’s logo, colors, and branding.
Your invoice should include several key details, such as:
The name and contact info of your business
The name and contact info of the customer
Description of services and/or products provided
Breakdown of costs of services and/or products provided
Sales tax, additional fees, and other applicable charges
Balance due
Payment terms and the due date
Once you’ve created the invoice and all information has been verified as accurate, you can send it to your customer.
Step 2: Customer Opens Client Portal
Your customer then receives an email. Through this email, they can view the invoice. If you accept online payments, there will also be a link or information about how to make a payment.
Step 3: Customer Enters Payment Information
If your customer is paying the invoice online, they enter their payment information, such as a credit card number or bank routing and transfer numbers, and the amount being paid. Once all information has been entered, the customer submits the payment.
Step 4: Payment Gateway Routes Information To The Payment Processor
This part doesn’t require action on the part of you or your customer. The information submitted through the payment gateway is then routed to the payment processor.
Step 5: Payment Processor Routes The Payment & Deposits Funds
The payment processor communicates with the customer’s bank and your bank to process the transaction. This data is routed to the appropriate institution, and funds are deposited into your account.
Step 6: Invoice Is Marked As Paid
Your invoice has now been paid! If you’re using invoicing software with integrated online payments, your software may do this for you. However, you may have to open the invoice and mark it as paid manually.
Which Invoice Payment Processor Is Right For Your Business?
If you aren’t using the internet to send invoices and accept payments, what are you waiting for? You’ll save time and money, get paid faster, and simplify your invoicing process — does it get any better than that?
When choosing the right payment processor and payment services for your business, keep a few things in mind. Your budget, processing volume, and experience with software and payment services can influence your decision. Do your research to find the best option for your business, and don’t forget to take advantage of free trials to find the one that works best for you.
Looking for more ways to get paid? With a few easy steps, you can get your invoices paid faster. Another option for increasing your cash flow is to use a factoring company for your unpaid invoices. Before you know it, you’ll be getting paid in no time. Good luck!
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
Let us know how well the content on this page solved your problem today. All feedback, positive or negative, helps us to improve the way we help small businesses.
Want to help shape the future of the Merchant Maverick website? Join our testing and survey community!
By providing feedback on how we can improve, you can earn gift cards and get early access to new features.
We Want Your Feedback!
Help us to improve by providing some feedback on your experience today.
The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
