As far as getting paid goes, the method you choose may affect how quickly and securely your business is paid. Some businesses may include a payment link on their invoice to prompt immediate payment, while others may use bank details.
In this article, we will discuss the difference between invoice payment links and bank detail invoicing, how to set up a payment link, and which one works best for different businesses.
What Is Invoice Payment by Payment Link?
An invoice payment link is a link on the invoice that the client can use to pay the invoice online. When the client clicks on the link, they are redirected to a page where they can pay the invoice online using the available payment options.
This method allows the client to avoid entering the bank details or making a bank transfer. Instead, the client can pay the invoice online with just a few clicks from the invoice.
Because of the method’s advantages, payment links are becoming popular among freelancers and businesses seeking to be paid quickly and without delays.
What Is Invoice Payment via Bank Details?
Invoice payment via bank details allows the business to include the bank details on the invoice, enabling the client to make the payment directly to the bank. The invoice may include the account name, the bank name, the account number, and other details.
With this payment method, the client must log in to the online banking platform and process the payment manually.
This method has been used over the years. However, the process may require additional steps from the client, which could delay payment.
Payment Link vs. Bank Details (Key Differences)
The two methods enable clients to pay invoices but differ in how payments are processed. Some of these differences may be influenced by factors such as ease of use and professionalism.
The following is a comparison of the two methods:
| Factor | Invoice Payment Link | Bank Details on Invoice |
| Payment Speed | Usually faster because clients can pay instantly by clicking the link. | Often slower since the client must manually initiate a bank transfer. |
| Ease of Use | Very convenient; the client completes payment in just a few steps. | Requires the client to copy the bank details and log in to their banking app. |
| Security | Payments go through secure payment gateways designed for online transactions. | Bank details are visible on the invoice, which can increase exposure if the invoice is intercepted. |
| Fees | Payment processors may charge transaction fees depending on the payment method. | Bank transfers may incur fees, but fees may be lower or waived depending on the bank and location. |
| Professionalism | Often seen as more modern and convenient for clients. | The traditional approach is still widely accepted, especially for B2B payments. |
| International Payments | Often easier because payment gateways handle currency conversion. | International transfers may require additional details, such as IBAN, SWIFT, or routing numbers. |
How to create an invoice payment link with Billing
Before you can add a payment link to an invoice, you need to set up your preferred payment link in the settings. Doing this will enable the payment link in the invoice you create.
Step 1: Log in to your Billing account
First, log in to your Billing account and open the main workspace, where all invoice settings are located. If you don’t have an account, you can sign up here.
Step 2: Set up payment links in Settings
In the settings section of your account, set up your preferred payment link. Without this step, you won’t be able to add a payment link to your invoice.
Step 3: Create a new invoice
After completing the previous steps, return to your dashboard and create an invoice. Include the client details and the products or services to be charged. Also, add the item description, price per item, number of items, any applicable taxes, and the invoice due date.
Step 4: Attach the payment link
Since you have already set up your payment link in step 2, rest assured that the invoice we are creating will include the payment link the client will use.
Step 5: Review and send the invoice
After completing all the steps to create an invoice, review and send it to the client for payment.
Pros and Cons of Using a Payment Link
Payment links are an easy way for clients to settle their bills online. Like all other payment options, payment links have their pros and cons. Analyzing both sides can help businesses determine whether or not to implement this option for their clients.
Pros
- Faster payments: Using payment links can speed up the process by streamlining it. The client only needs to click the link to pay immediately.
- Improved client experience: The process is also convenient for clients, as they don’t need to fill out forms or send payment to have their payment processed.
- More professional look: Using payment links can also give your business a more professional look, making it appear organised.
- Ideal for remote clients: The system is also ideal for clients based in a different country from the business, as they don’t need to provide complex banking information such as routing numbers or international transfer codes.
Cons
- Transaction fees are incurred: the payment system charges a percentage on each transaction. This means you will receive slightly lower amounts for each payment.
- Payment platform setup is required: To be able to use the payment link option, you need to set it up first.
- Some clients may not like the idea: Some clients may not like the idea of using a payment link because they would prefer to send their money via bank transfer.
Pros and Cons of Sharing Bank Details
Including bank details on an invoice is still a common practice for many organizations, especially for bank transfers. It is a simple and widely used method, but it has limitations.
Pros
- No payment processor fees: Bank transfers can avoid the fees charged by the online payment processors.
- Familiar with many businesses: Many businesses, especially in B2B transactions, are accustomed to paying invoices via bank transfer.
- For large transactions : Bank transfers can be more convenient when dealing with large transactions since they do not have the same restrictions as some online payment processors.
- Easy to implement: Simply include your banking details on the invoice.
Cons
- Slower Payment Process: The client must manually sign in to their banking platform and enter the payment details, which may delay the payment.
- Error Risk: There is a higher risk of errors when the client manually enters the bank details, especially if they enter the account number incorrectly.
- Security Issues: There is a security concern if fraudsters intercept the invoice containing the bank details.
Which Is Better for Your Business Type?
Choosing the most suitable payment option depends on your business model. It also depends on the nature of the clients you are working with.
For freelancers
For freelancers, using a payment link can simplify the process. This is especially true, as most freelancers typically work with several small businesses or individuals.
For service-based businesses
For agencies, designers, or marketing consultants, both options are available. Payment links can make the process easier for the clients. Bank transfers can be helpful to some clients.
Product-based businesses
For product-based businesses, payment links tend to perform well because they allow customers to complete payments in a single step, similar to an online checkout process.
International client-based businesses
For international client-facing businesses, payment links can be more useful by eliminating the need for clients to enter complex banking details such as IBAN and SWIFT.
B2B-based businesses
For B2B businesses, especially those operating primarily in a B2B environment and dealing with large organizations, bank transfers remain a primary method for many organizations seeking to pay invoices through their own banking systems.
In many cases, both payment methods can be offered on the same invoice.
Security Considerations You Should Know
When deciding between these two, security is a key consideration. Invoice fraud is also on the rise, so businesses need to be aware of the risks associated with each of these methods.
Invoice fraud
Scammers may intercept the invoice and alter the account details before the client receives it. The client will then send the money directly to the scammer if they send the altered account details. This type of fraud typically occurs when the invoice is sent via an insecure channel.
Phishing risks
Some of these fraudsters also send invoices that appear to be from legitimate companies. This means that if a client is not very cautious, they may end up sending money to these fraudsters.
Payment links can reduce your risk of exposure
Using payment links means that clients are redirected to secure payment sites where they can make their payments. This reduces the need to include bank details on the invoice, which unauthorized parties could access.
This is why most businesses prefer using payment links since they are safer compared to bank details.
Frequently Asked Questions
1. Is it safe to put bank details on an invoice?
Yes, including bank details on an invoice is safe, as it is a common method for receiving bank transfers. However, there is some risk, as fraudsters could intercept the invoice. Therefore, it is advisable to send an invoice via a secure channel.
2. Do payment links cost extra for the client?
Sometimes, these payment links can be processed by payment providers. Providers may charge transaction fees based on the payment method. Most often, the business being paid will bear the transaction fees and not the client.
3. Which method results in faster payment?
Payment links are typically faster because clients can complete payments immediately by clicking the link. On the other hand, bank transfers require clients to enter payment information, making the process more complex.
4. Can I offer both options on the same invoice?
Yes, it is possible to include both a payment link and bank details on the same invoice, giving customers the option to choose the most suitable payment method.
Final Thoughts
Both payment links and bank transfers can work well for invoicing, but the best option depends on your business needs. Payment links typically offer faster, more convenient payments, while bank transfers remain a reliable, traditional option. In many cases, offering both options gives clients the flexibility to choose how they prefer to pay.
