The Complete Guide To Accepting Online Invoice Payments

These services make invoicing easier and more convenient than ever while also allowing you to get paid faster than you would with manual invoicing.

• Erica Seppala An expert in accounting, finance, and point of sale, Erica has been researching and writing about all things small-business since 2018. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, Real Simple, and Reader's Digest. She is a graduate of Limestone College.

  Expert Analyst & Reviewer

• 
  Aug 13, 2021

  UPDATED

Technology has completely changed the way we do business. We can place or take orders online, communicate with clients and colleagues through email or video conferencing, and even draw in new customers with social media marketing and websites. One of the most significant ways that technology has changed the small business world is the ability to make and accept invoice payments online.

Let’s face it — manual invoicing is slow. The process of manually creating an invoice, sending it through snail mail, and waiting for the customer to receive it and send back the payment can drag on for weeks. That’s assuming that your customers even receive the invoice or don’t misplace it! This isn’t just a hassle; it could also severely impact your cash flow and put your business at risk.

Instead of wasting time, energy, and office supplies sending out invoices and cashing checks, consider an online invoice payment solution. Sending invoices and accepting payments online is beneficial to you and your customers. And the best part? You can get paid faster — so why not give it a shot?

In this post, we’re going to take a deep dive into the world of online invoice payments. Whether you’re already using accounting software and want an integrated solution or you’re starting completely from scratch, we have you covered. We’ll look at the benefits of online payments, the invoicing cycle, and a few great options to consider for your business. So sit back, relax, and get ready to find out more about getting paid faster and easier than ever with online invoice payments.

Learn More About Our Top Picks

Company	Summary	Next StepsSummary
Square Invoices Read More	Best all-in-one eCommerce, invoicing, and payment processing solution.	Best all-in-one eCommerce, invoicing, and payment processing solution. Visit Site Read More
FreshBooks Read More	Best for FreshBooks users.	Best for FreshBooks users. Start Trial Read More
QuickBooks Payments Read More	Best for QuickBooks users.	Best for QuickBooks users. Visit Site Read More
PayPal Read More	Best for low-volume businesses and micro-merchants.	Best for low-volume businesses and micro-merchants. Visit Site Read More
Stripe Payments Read More	Best for online businesses, SaaS, and recurring payments.	Best for online businesses, SaaS, and recurring payments. Visit Site Read More

Other Featured Options:

• Authorize.Net: Best for numerous integrations and control of payment processing.
• Braintree Payment Solutions: Best for numerous integrations and accepting international payments.
• Dharma Merchant Services: Best for B2B.
• CDGcommerce: Best for POS or wholesale.
• Stax By Fattmerchant Virtual Terminal: Best for customer experience.

Read more below to learn why we chose these options.

What Is An Invoice Payment?

As a small business owner, you’re probably familiar with invoices. You may send invoices to your customers for products or services that 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. 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.

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 Invoice Payments

There are a variety of ways to accept invoice payments. A business may accept cash in-person, a personal check, or money order. However, many businesses are using technology to simplify invoice payments. Some businesses 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? Let’s start with an example.

Business A has provided services to Business B. The accounts receivable department of Business A creates the invoice, prints it, puts it in a stamped envelope, and sends it through the mail. Best case scenario, Business B receives the invoice the next day. Worst case, Business B doesn’t receive the invoice for several days.

Business B now has the invoice and has opened it. The accounts payable team has to review the invoice for accuracy, print the check, and mail it to Business A. Again, this process can take one day or several.

Once Business A has received the check, it is then taken to the bank and deposited into the business bank account. Based on the bank’s specific policies, the funds may not be available for several more days.

In other words, it could potentially take weeks to receive payment for products or services that have been provided. Now, let’s move on from this imaginary scenario and look at the facts.

A study performed 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, 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%!

Still not convinced? Let’s break down the many benefits of online invoicing for your business:

• Saves Time: Remember the scenario from earlier? Your customers may not receive their invoices for days or even longer. Even when the invoice is received, additional steps delay your payment further. With online invoicing, you can create your invoice, send it to your customer, and get paid all in the same day.
• Saves Money: There are plenty of free and low-cost invoicing options on the market. While you may have to pay a small fee for payment processing, you will save money on envelopes, paper, printer ink, postage, and other costs associated with manual invoicing.
• Get Paid Faster: The online invoicing process is quick, and offering multiple payment options to your customers makes it easier to get paid faster.
• Less Paperwork: In addition to printing and sending invoices to customers in the mail, many businesses also print and store their own copies. With online invoicing, there’s no paperwork for you or your customers — everything is available online.
• Invoice Tracking: Many online invoicing programs allow you to track your invoices, ensuring that you know exactly when your customers receive their invoices, open them, and submit payment.
• Easy Corrections: Let’s face it — mistakes happen. If there’s an error on your invoice, you can easily correct it and resend it to your customer.
• Automations: If you have customers that are billed regularly, online invoicing allows you to set up recurring invoices. You can also take advantage of other automations, such as sending payment reminders.
• Looks Professional: Many invoice programs offer customization features, so you can add your logo and additional branding for a truly professional look.
• Mobility: You don’t have to be at your office to send invoices. Send invoices from home, from your mobile phone or tablet, or anywhere with online invoicing.
• Organization: With manual invoicing, it’s easy to overlook sending an invoice or pursuing a late payment. Online invoicing helps eliminate these costly errors.
• Get Useful Reports: Some online invoicing programs offer reporting functions, so you can track payments, review client history, or run income projections. These reports and records are also useful in the event of an IRS audit.

How Do Online Invoice Payments Work?

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 and Fattmerchant Virtual Terminal are just two examples of programs that allow you to send invoices and accept payments from your customers.
• Payment Services: Software that 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 you know exactly what to expect during the process.

Step 1: Create & Send The Invoice

Using your invoicing software, you’ll first create your invoice. Depending on the customization options of your software, 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 the invoice has been created and all information has been verified as accurate, send the invoice 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 will then enter 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.

The Best Payment Processors For Accepting Invoice Payments

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.

1. Square Invoices

Best for businesses that want an all-in-one eCommerce, invoicing, and payment processing solution.

Many small businesses — maybe even your own — use Square for its free POS app and easy-to-use card readers. Since its launch, Square has become known as a payment processor. In 2014, the company also added Square Invoices, a solution that allows businesses to invoice and accept payments with ease.

If you’re already signed up with Square, the Invoices feature is part of your Dashboard. If you don’t have an account, you can sign up at no cost and take advantage of the great features that Square has to offer, including Square Invoices.

With Square Invoices, you can send automatic payment reminders or schedule recurring payments quickly and easily. You can also add attachments and a spot for tips to your invoices. Once you’ve customized your invoices, you can send them for free. Payment processing, however, does come at a cost (which we’ll discuss in just a moment). Square Invoices also works with Square Installments, so you can offer payment plans to your customers without the hassle of integrating additional products.

Square Invoices has a well-designed UI and is easy to use once you get a grasp of everything Square has to offer. Square Invoices users like the ease of use, mobility, and customizability of invoices, but there have been complaints surrounding the costly transaction fees and a lack of invoice templates.

Pricing

There are no monthly fees to use Square Invoices. Sending invoices is free. Accepting payments by cash or check is also free. However, if you want to accept online payments, you will pay 2.9% + $0.30 per invoice.

When To Use Square Invoices

If you’re looking for an all-in-one solution that includes invoicing, eCommerce, and payment processing, give Square Invoices a try — especially if you’ve already signed up for Square’s other services.

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2. FreshBooks Payments

Best for FreshBooks users. 

First launched in 2003, FreshBooks has become the accounting and invoicing software for over 10 million businesses. For an additional fee, you can also add FreshBooks Payments — an online payment gateway and virtual terminal that allows you to accept payments online, in-person, or over the phone.

FreshBooks Payments integrates with your FreshBooks accounting software, allowing you to add an online payment option directly 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.

Setting up an account is easy, and there are no monthly fees to use FreshBooks Payments. There are no hidden costs, so all pricing is transparent and easy to understand. FreshBooks is also known for its award-winning customer service and has an overall excellent reputation with its clients.

Pricing

You won’t pay any monthly fees or hidden charges with FreshBooks Payments. For credit or Apple Pay transactions, you will pay 2.9% + $0.30 per transaction. For ACH payments, you’ll pay a 1.0% bank transfer fee.

When To Use FreshBooks Payments

If your business already uses FreshBooks for its accounting software, FreshBooks Payments is a great option for accepting online payments. There are no monthly fees or hidden charges, and quick and easy integration means that you can begin accepting payments in just minutes.

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3. QuickBooks Payments

Best for QuickBooks users. 

Does your business use QuickBooks as its accounting solution? If so, you don’t have to look very far to find a payment processor when you take advantage of QuickBooks Payments (also known as Intuit Merchant Services). QuickBooks Payments is a merchant services provider that uses Fiserv as its back-end payment processor. There are four different products to choose from based on what version of QuickBooks you use: QuickBooks Online Payments, QuickBooks Desktop Payments, QuickBooks GoPayment, and QuickBooks Point of Sale.

QuickBooks Payments has a lot of benefits, especially if you’re already using the software. You can easily add a “Pay Now” button to your invoices, receive your funds the next day or instantly, and send reminders to your customers. You’ll even get real-time alerts when your customers open or pay their invoices. The biggest draw for many users is that QuickBooks Payments seamlessly integrates with QuickBooks. Payments are automatically reconciled to invoices, helping you keep your books balanced.

QuickBooks Payments has pretty solid customer service and an overall good reputation among its users. However, some users have reported long waiting times when contacting customer support, while others have complained about the lack of invoice customization options.

Pricing

The pricing structure for QuickBooks can get a little complicated, as it’s based on the product you’re using as well as whether you choose a monthly plan or the pay-as-you-go option.

QuickBooks Online Payments has no monthly fee and does not charge for ACH transfers. Charges for other transactions are:

• Swiped Credit/Debit: 2.4% + $0.25 per transaction
• Invoices/ApplePay/PayPal: 2.9% + $0.25 per transaction
• Keyed Transactions: 3.4% + $0.25 per transaction

With QuickBooks Desktop Payments, you have two options: pay-as-you-go and a pay-monthly plan. The pay-as-you-go plan has no monthly fee. Other fees include:

• ACH Transfer: $1/each
• Swiped Credit/Debit: 2.4% + $0.30 per transaction
• Invoices/Apple Pay: 3.5% + $0.30 per transaction
• Keyed Transactions: 3.5% + $0.30 per transaction

With the monthly plan, you’ll pay a monthly fee, but you’ll save on your transaction fees. If you sign up for QuickBooks Desktop Payments monthly plan, these are the fees you should expect:

• Monthly Fee: $20
• ACH Transfer: $1
• Swiped Credit/Debit: 1.6% + $0.30 per transaction
• Invoices/Apple Pay: 3.3% + $0.30 per transaction
• Keyed Transactions: 3.3% + $0.30 per transaction

If you use the QuickBooks POS system, you’ll want to check out QuickBooks POS Payments. There are two plans to choose from: Basic and Pro.

The Basic Plan has no monthly fee. Other fees for this plan are as follows:

• Swiped Credit/Debit: 2.7%
• PIN Debit: 1.0%
• Keyed Transactions: 3.4%

The Pro Plan has a monthly fee. Transaction fee rates are slightly lower, but there is a per-transaction fee, so keep this in mind and run a few calculations to check which is the better value for your business.

• Monthly Fee: $19.95
• Swiped Credit/Debit: 2.3% + $0.25 per transaction
• PIN Debit: 1.0% + $0.25 per transaction
• Keyed Transactions: 3.2% + $0.25 per transaction

For mobile processing, you might want to consider GoPayment. This solution has no monthly fee. You will, however, have to pay for the following:

• Swiped Transactions: 2.4%+ $0.30 per transaction
• Keyed Transactions: 3.4%+ $0.30 per transaction

For all plans, PCI compliance is an opt-in service that is priced at $9.95/month for pay-as-you-go customers. Pricing for pay-monthly customers is as much as $100/year. Additional fees to be aware of when using QuickBooks Payments include:

• Returned Check Fee: $10
• ACH Rejection Fee: $25
• Chargeback Fee: $25

When To Use QuickBooks Payments

QuickBooks Payments is ideal for customers that are looking for a merchant services and payment processing solution that integrates seamlessly with QuickBooks. If you use different accounting software, consider exploring other options.

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4. PayPal

Best for low-volume businesses and micro-merchants. 

Unless you’ve been living under a rock without internet access, you’ve most likely heard of (and probably used) PayPal before. 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 — PayPal may be the right choice for your business.

One of the benefits of PayPal is that you’ll be working with a company that has a trusted name among consumers and merchants. This third-party payment processor 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.

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 solid customer service and tech support and is viewed favorably by most users. However, high transaction fees, account holds, and chargebacks are common complaints about using PayPal. This product is best for low-volume businesses or micro-merchants.

Pricing

If you are a PayPal Standard or Pro user, transaction fees are as follows:

• Online Transactions: 2.9% + $0.30 per transaction
• Swiped In-Store Transactions: 2.7%
• Keyed-In Mobile & In-Store Transactions: 3.5% + $0.15
• Virtual Terminal Transactions: 3.1% + $0.30 per transaction
• Mass Payouts: 2% using the online form ($1 maximum) or $0.25 per payout using the API

Additional fees worth noting include:

• Chargebacks: $20
• Transactions Originating Outside Of the US: 1.5% fee
• Instant Transfer Fee: 1% of the transfer amount (with a maximum fee of $10)
• Micropayment Processing: 5% + $0.05
• PayPal Payments Pro: $30/month

When To Use PayPal

PayPal is a great option for low-volume businesses and micro-merchants that want an easy-to-use payment solution that can stand alone or be integrated with other third-party products. Larger businesses that process more than $10,000 each month may find PayPal’s fees to be a little bit steep, so a traditional merchant account would be a better choice.

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5. Stripe

Best for online businesses, SaaS, and recurring payments.

Stripe is a payment service that combines third-party payment processing with a payment gateway. Stripe counts businesses such as Lyft, Pinterest, and Under Armour among its clients, and it’s easy to see why. Stripe isn’t just your typical payments service; it 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.

With Stripe, you can accept more than 135 currencies. Businesses can accept payments online, in-person, or via mobile apps by using this service. As previously mentioned, Stripe also has a comprehensive set of developer tools for quick and easy integration. You also 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 you can send invoices through Stripe Billing.

If you encounter any issues, you can get in touch with Stripe 24/7 through its phone and chat support. Stripe has a pretty good reputation among merchants. However, there are a few complaints, most notably about the lack of fraud protection, account holds, and terminations. One last thing to keep in mind is that this service can be difficult to use, as it was built with developers in mind. Less-experienced users may want to test out other options on the market (and on this list) before using Stripe.

Pricing

Stripe is transparent about its pricing and charges a flat rate of 2.9% + $0.30 for credit card transactions and 0.8% (capped at $5) for ACH transactions.

There are a few additional costs to be aware of. Stripe Billing offers two plans — Starter and Scale. The Starter plan is free for the first $1 million in transactions. After this, a flat rate of 0.4% (plus processing fees as listed above) is charged per transaction. The Scale plan costs 0.7% (plus processing fees) per transaction.

Stripe Terminal is available for a cost of 2.7% + $0.05 per transaction. Merchants can also purchase one of two card readers for an additional fee.

Additional fees are charged for other Stripe services, including the Sigma advanced reporting tool and Radar advanced fraud tools.

When To Use Stripe

Stripe is best for businesses that want to set up subscriptions or recurring payments — think SaaS businesses. If you’re looking for a plug-and-play payment processing option, you might want to look elsewhere, as Stripe is geared more toward those with developing experience.

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6. Authorize.Net

Best for businesses that want numerous integrations and control of payment processing. 

Authorize.Net is a payment processor that has provided services to over 400,000 merchants since it first launched in 1996. Before we go into what Authorize.Net is, let’s first look at what it isn’t. It is not a merchant account provider. While a merchant account option is available, pricing is steep, so we recommend using one of the following merchant account options with Authorize.Net instead: Payment Depot, CDGcommerce, and Payment Cloud.

What Authorize.Net does and does well is offer 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 offers support for 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. While Authorize.Net has a pretty good public reputation, there have been some user complaints regarding data portability and billing issues.

Pricing

There are two pricing plans to consider when signing up for Authorize.Net’s services. The first plan is for the payment gateway only. Fees for this plan are:

• Gateway Fee: $25/month
• Processing Fee: $0.10 per transaction
• Daily Batch Fee: $0.10

If you want a payment gateway plus a merchant account, you’ll pay the following fees:

• Gateway Fee: $25/month
• Processing Fee: 2.9% + $0.30 per transaction processing fee

Additional fees to note include:

• International Transaction Fee: 1.5%
• eCheck Processing: 0.75% per transaction
• Chargebacks: $25

When To Use Authorize.Net

Authorize.Net is the ideal solution for businesses that already have a merchant account and need a secure payment gateway that supports many different types of online payments.

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7. Braintree Payment Solutions

Best for businesses that want numerous integrations and to accept international payments. 

Braintree Payment Solutions allows businesses to accept online invoice payments with secure bank-sponsored merchant accounts combined with a payment gateway. Rates are fair and transparent, and there are no surcharges or fees.

Braintree 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 overall excellent public reputation, and you’ll quickly see why we’ve given Braintree a 5-star review.

While Braintree has received favorable reviews, some customers have complained about account setup times and insufficient fraud protection. Braintree’s services are also not suited for high-risk businesses.

Pricing

Braintree offers simple, easy-to-understand pricing, which is refreshing when compared to some of the more complicated pricing structures you’ll find among merchant account providers. Rates are 2.9% + $0.30 per transaction for domestic transactions. International transactions come with a 1% fee, and payments made on cards issued outside of the US are also charged a 1% fee.

For ACH Direct Debit, fees are 0.75% per transaction, with a maximum charge of $5. Volume discounts, nonprofit discounts, and custom pricing are also available.

When To Use Braintree Payment Solutions

If you want to accept numerous types of payments and/or make international sales, you can’t go wrong with Braintree, which offers competitive pricing, no hidden fees, and a variety of features that make it easy for businesses to accept online payments.

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8. Dharma Merchant Services

Best for B2B. 

If you primarily sell your products and services to other companies and you’re ready to take the leap into online invoice payments, Dharma Merchant Services may be a good option for your business. This merchant account provider stands out for its fair pricing, transparency, and exceptional customer service.

Dharma 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 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, transparent pricing, and the products you need to run your business more efficiently.

Pricing

Dharma offers four rate plans based on different business categories.

The Storefront Plan is ideal for retail businesses. Costs for this service are as follows:

• Monthly Fee: $25
• Merchant Rates: Interchange + 0.15% + $0.08 per transaction (interchange + 0.25% + $0.08 per Amex transaction)

eCommerce businesses can take advantage of Dharma’s Virtual rates, which are:

• Monthly Fee: $25
• Merchant Rates: Interchange + 0.20% + $0.11 per transaction (interchange + 0.30% + $0.11 per Amex transaction)

Dharma also has a plan for restaurant owners. Those rates are:

• Monthly Fee: $25
• Merchant Rates: Interchange + 0.15% + $0.08 per transaction (interchange + 0.25% + $0.08 per Amex transaction)

Finally, Dharma offers a high-volume retail rate plan. For this plan, you’ll pay:

• Monthly Fee: $20
• Merchant Rates: Interchange + 0.10% + $0.08 per transaction card-present transaction (interchange + 0.20% + $0.08 per Amex card-present transaction)

There are additional fees to be aware of if you choose Dharma as your merchant services provider. These include incidental fees of $20 for chargebacks and $5 for retrieval fees. If you also plan to use one of Dharma’s payment gateways, there is an additional charge of $10/month and $0.05 per transaction.

Dharma also has a B2B program that offers discounts on processing charges. This service requires the MX B2B app that’s priced at $20/month.

When To Use Dharma

Dharma is best for businesses that process more than $10,000 each month, B2Bs, and any business that values good customer support and fair pricing. Dharma is not ideal for any business in a high-risk industry.

Get Started with Dharma Merchant Services

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9. CDGcommerce

Best for POS or wholesale. 

If you’re in an industry such as retail, eCommerce, or wholesaling, CDGcommerce may be the right solution for you. CDGcommerce is a merchant services provider that offers many great features at competitive pricing with no hidden fees.

What stands out about CDGcommerce? It’s worth noting that its customer service and top-quality products have allowed this company to hold a 97% customer retention rate. Other 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 public reputation is excellent, with very few negative customer reviews to be found.

Pricing

There are several different pricing plans for CDGcommerce’s merchant account services, so consider the needs of your business when determining which plan to choose.

The flat-rate pricing plan is ideal for businesses that process less than $10,000 per month. The pricing under this plan is as follows:

• Swiped Or Mobile (Card-Present) Transactions: 2.75% + $0.30 per transaction
• Keyed Transactions: 2.75% + $0.30 per transaction + 0.15% surcharge
• Online Transactions: 2.90% + $0.30 per transaction
• ACH Debit Transactions: 0.75% + $0.15 per transaction

If you process more than $10,000 and up to $200,000 each month, the interchange-plus plan may be the best option for you. Fees for this plan are:

• Swiped Transactions: Interchange + 0.25% + $0.10 per transaction
• Online/Keyed Transactions: Interchange + 0.30% + $0.15 per transaction
• ACH Debit Transactions: 0.75% + $0.15 per transaction
• Monthly Fee: $19-$49/month

Finally, CDGcommerce offers a subscription plan based on the amount you process each month. Those plans are priced as follows:

• Up To $75,000/Month: $79/month with a flat rate of interchange + $0.10 per transaction
• Up To $200,000/Month: $99/month with a flat rate of interchange + $0.07 per transaction
• $200,000+/Month: $149/month with a flat rate of interchange + $0.06 per transaction

Additional fees to note include $25 chargeback fees, $15 retrieval fees, and $0.25 batch fees.

When To Use CDGcommerce

CDGcommerce is the ideal merchant services provider for US-based businesses that want high-quality products and services combined with competitive pricing. It is also a good choice for some high-risk businesses that have trouble obtaining a merchant account elsewhere as well as retailers, eCommerce businesses, and other businesses that need traditional POS services.

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10. Fattmerchant Virtual Terminal

Best for customer experience. 

Fattmerchant has offered payment processing services since 2014, and the company also provides invoicing through its Virtual Terminal product. You can also add on other Fattmerchant services (such as mobile payments, a physical terminal, and online shopping cart) since they are all compatible to create your personalized payment solution.

Fattmerchant Virtual Terminal offers a decent amount of features and is easy to use. It also offers a unique pricing structure, which we’ll look at in detail in just a moment. Where Fattmerchant stands out, though, is its customer support, which is frequently praised by customers. Fattmerchant offers 24/7 phone and email support and a variety of other resources to help you get the most out of the service.

On the downside, though, Fattmerchant Virtual Terminal can be expensive for businesses with low processing volumes. Limited customization options for invoices as well as missing features that you’d find with other invoicing software could prove to be dealbreakers for some businesses.

Pricing

There are two different plans you can select: Fattmerchant Starter Platform and Fattmerchant Enterprise Platform.

The Starter Platform is available for $99/month. You’ll also pay $0.15/per transaction + direct cost interchange fees for payment processing. With this plan, you’ll get access to features, including invoicing, inventory, and integration with QuickBooks Online.

The Enterprise Platform is priced at $199/month. You’ll also pay $0.15/per transaction + direct cost interchange fees. This plan includes everything from the Starter Plan plus additional features, such as reporting, priority risk monitoring, chargeback monitoring, and a dedicated customer success manager.

Add-ons, including same-day funding, terminal protection plan, analytic reporting, and advanced invoice customization, are available for additional fees.

When To Use Fattmerchant Virtual Terminal

Businesses with high processing volumes that are looking for online invoicing and payments that are easy to use and offers solid customer support should give Fattmerchant Virtual Terminal a try. Businesses that want more customization options should look elsewhere, while businesses with low processing volumes may find the service to be too expensive.

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Choosing The Right Payment Processor For Your Invoices

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, your processing volume, and even your 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. Good luck!

In Summary: The Best Payment Processors For Accepting Invoice Payments

1. Square Invoices: Best all-in-one eCommerce, invoicing, and payment processing solution.
2. FreshBooks: Best for FreshBooks users.
3. QuickBooks Payments: Best for QuickBooks users.
4. PayPal: Best for low-volume businesses and micro-merchants.
5. Stripe Payments: Best for online businesses, SaaS, and recurring payments.
6. Authorize.Net: Best for numerous integrations and control of payment processing.
7. Braintree Payment Solutions: Best for numerous integrations and accepting international payments.
8. Dharma Merchant Services: Best for B2B.
9. CDGcommerce: Best for POS or wholesale.
10. Stax By Fattmerchant Virtual Terminal: Best for customer experience.

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Erica Seppala

Expert Analyst & Reviewer at Merchant Maverick

An expert in accounting, finance, and point of sale, Erica has been researching and writing about all things small-business since 2018. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, Real Simple, and Reader's Digest. She is a graduate of Limestone College.

View Erica Seppala's professional experience on LinkedIn.

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