Online Invoices and Payment Links
Rasika Lakshan ·
Last updated:
This is general information, not legal or tax advice.
Who this is for: Freelancers, service businesses and small online sellers who want to get paid without building a checkout.
In short: An invoice is for billing a specific customer; a payment link is a reusable page anyone with the link can pay. Stripe documents both as no-code options. Card payments on invoices are priced like online payments at the providers we checked (for example 3.3% + 30¢ on Square's Free plan and 2.99% + a fixed fee at PayPal for standard cards), and bank (ACH) payments can be cheaper on big invoices.
Two ways to get paid without building a checkout are invoices and payment links. This guide compares how Stripe, Square and PayPal describe them, using their own pages as read on 2026-10-16. Fees change, so confirm on the provider’s site. This is general information, not financial or tax advice.
Invoice or payment link?
Stripe’s documentation compares the two directly:
| Invoice | Payment link | |
|---|---|---|
| Best for | Collecting one-time or recurring payments from a specific customer | Selling a product or subscription, or accepting a donation |
| Who can pay | Specific individuals or businesses | Anyone with the link |
| Reuse | Cannot be reused; you can duplicate and edit one for another customer | Reusable with multiple customers, or limited to a number of purchases |
| Sharing | Email from the dashboard, share a link by email or SMS, send a PDF, or auto-charge a payment method on file | Show a QR code, copy the link to share by email, SMS or social media, or add a buy button to your website |
| Customization | An editable template (icons, brand colors, payment terms, memo and footer fields) | Limited customization: 20 preset fonts, 3 border radius options, and custom logo and button colors |
| Extras | Quotes converted to invoices, automatic collection and reminder emails | Promotion codes, upsells and optional items |
Both are no-code at Stripe. Square and PayPal also offer invoices; PayPal says customers can pay its invoices with their preferred payment method even if they do not have a PayPal account.
A rule of thumb that follows from this table: if you are billing one client for work you did, use an invoice. If you are selling the same thing to many people, use a payment link.
What invoice payments cost
These are the rates published for payments made through an invoice, as read on 2026-10-16:
- Square: card payments online or through an invoice are 3.3% + 30¢ on the Free plan and 2.9% + 30¢ on Plus and Premium. ACH bank transfer via invoice is 1% with a $1 minimum, and a $10 fee cap on Plus and Premium.
- PayPal: for receiving domestic invoicing transactions, PayPal Checkout, Venmo or Guest Checkout is 3.49% + a fixed fee; standard credit and debit cards, Apple Pay and other third-party wallets are 2.99% + a fixed fee; Pay Later options are 4.99% + a fixed fee; and Pay by Bank (ACH) is 1% capped at $10.00 per transaction. International invoicing adds another 1.50%.
- Stripe: its pricing page lists an Invoicing Starter fee of 0.4% per paid invoice. It also lists card and ACH processing rates elsewhere; see Stripe fees explained. We did not confirm how Stripe combines the invoicing fee with the payment fee for every case, so read its pricing details.
On a $500 invoice paid by card at Square’s Free-plan rate, the fee is $16.50 + $0.30, or $16.80; the same invoice on Plus or Premium is $14.50 + $0.30, or $14.80. That is arithmetic from the published rates, not a quote. For large invoices, compare card fees against bank payments in our ACH guide.
Making an invoice before you pick a provider
Our free invoice generator creates a PDF with your logo, line items, a discount, a sales tax rate and a payment link with a QR code. It runs in your browser and does not take payments; paste a link from your processor if you want the invoice to point customers to a payment page.
For sales tax, enter the rate that applies to your sale. Our sales tax calculator shows each state’s base rate from official pages, and local taxes can add to it.
Before you send
- Put the due date and payment terms on the invoice and in the email.
- Check what the provider charges for each payment method it offers a customer; the cheapest method for you is not always the one a customer picks.
- Keep your own record of each invoice number and date.
What we did not verify
We did not read Square’s or PayPal’s invoicing feature pages beyond the fee tables, did not check recurring-invoice fees, and did not verify any provider’s approval or reserve rules for invoice income. Ask your provider before relying on invoicing for most of your revenue.
Frequently asked questions
What is the difference between an invoice and a payment link?
Stripe says invoices collect one-time or recurring payments from a specific customer and cannot be reused (you can duplicate and edit them), while payment links can be used to sell a product, a subscription or accept a donation, can be used by anyone with the link, and can be reused with multiple customers or limited to a number of purchases.
Do payment links need code?
Stripe says its payment links need no code and that you can share them on social media, in emails or on your website. Other providers offer similar tools; check their own pages.
What do invoice payments cost?
At the pages we read: Square lists card payments online or through an invoice at 3.3% + 30¢ (Free plan) or 2.9% + 30¢ (Plus and Premium); PayPal lists 3.49% + a fixed fee for PayPal Checkout, Venmo or Guest Checkout and 2.99% + a fixed fee for standard cards on invoices; Stripe lists an Invoicing Starter fee of 0.4% per paid invoice on its pricing page, in addition to the processing details it links to. Check how these combine on each provider's page.
Can customers pay an invoice by bank transfer?
Square and PayPal both list ACH bank payment on invoices, at 1% with caps on some plans. See our ACH guide for the details and the caveats.
Can I add sales tax to an invoice?
Many invoice tools let you enter a tax rate, but which rate you owe depends on your state and your customer. Our sales tax calculator shows each state’s base rate from official pages.
Do I need a processor account to send an invoice?
To collect payment through a provider’s invoice, yes, you need an account with that provider. Our free invoice generator makes a PDF invoice and can print a payment link, but it does not take payments.
Keep reading
Sources
- Stripe Docs: Payment Links (checked 2026-10-16)
- Stripe Docs: Invoicing (checked 2026-10-16)
- Stripe: Pricing (checked 2026-10-16)
- Square: Pricing (checked 2026-10-16)
- PayPal: Business fees (US) (checked 2026-10-16)