How to send an invoice on PayPal (step-by-step guide)

Sending a PayPal invoice takes less than five minutes and gives your client a clean, one-click way to pay you. Here is exactly how to do it, what it costs, and how to handle follow-ups.

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How to send a PayPal invoice from paypal.com

Before you start: Make sure you have a PayPal account. A personal account works, but a PayPal Business account gives you access to the full invoicing dashboard, logo upload, and template saving.

Step 1 — Log in and open Invoicing. Go to paypal.com and sign in. From the top menu click Tools, then Invoicing.

Step 2 — Create a new invoice. Click the Create Invoice button. PayPal opens a blank invoice form.

Step 3 — Add your client's information. Enter the client's name and email address in the "Bill to" field. Double-check the email — PayPal delivers the invoice straight to that inbox.

Step 4 — Describe what you did (or sold). In the line-items section, add:

• A clear item or service description (e.g., "Logo design — 3 rounds of revisions")
• Quantity and unit rate
• Any applicable sales tax, if your state and transaction type require it (sales tax rules vary by state and service type — consult your state's revenue agency if unsure)

Step 5 — Set a due date and payment terms. Use the Due date field or type terms in the Notes box, such as "Payment due within 14 days." If you use Net 30, that means payment is due 30 days after the invoice date.

Step 6 — Customize (optional but worth it). Upload your logo, adjust the currency, and add a personal note or thank-you message. A logo takes seconds and makes the invoice look intentional rather than generic.

Step 7 — Review and send. Click Preview to see what your client will see, then click Send. PayPal emails the invoice with a built-in payment button.

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How to send a PayPal invoice from the PayPal Business app

If you are out and about and need to invoice immediately, the PayPal Business app (iOS and Android) handles it end-to-end:

Step 1 — Open the app and tap the menu icon (three lines, top left).

Step 2 — Tap Invoicing, then Create Invoice.

Step 3 — Add the client's email, line items, amount, and due date — the same fields as the desktop version.

Step 4 — Tap Send. The client receives the email invoice instantly.

The mobile flow is slightly more condensed than the desktop version. For first-time setup (logo, saved templates) the desktop version is easier.

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What PayPal charges for invoices

Creating and sending a PayPal invoice is free. PayPal collects a fee only when your client pays. According to PayPal's fee schedule, the standard rate for goods and services transactions in the US is 3.49% + a fixed fee (the fixed portion depends on currency). Rates differ for international transactions, currency conversions, and certain account types — check PayPal's current fee schedule before quoting clients.

Practical tip: If the PayPal fee would noticeably dent your margin, either absorb it (common for small amounts) or add a line item labeled "Payment processing fee" to pass it through transparently. Be aware that some states restrict surcharging — general information only, not legal advice.

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How your client pays the invoice

Your client receives an email with a Pay Now button. Clicking it takes them to a PayPal-hosted payment page. From there they can pay with:

• Their PayPal balance
• A linked bank account
• A credit or debit card (no PayPal account required)

Once they pay, you and the client both receive a confirmation email, and the invoice status in your dashboard updates to Paid.

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How to send a payment reminder

If a due date passes and the invoice is still unpaid:

1. In your PayPal invoicing dashboard, find the invoice and click it.
2. Click Send Reminder. PayPal sends a polite follow-up email to your client referencing the original invoice.
3. Repeat up to a reasonable number of times — but if a client is genuinely non-responsive, a direct phone call or message outside of PayPal usually moves things faster.

You can also turn on automatic reminders when creating the invoice: set reminders for X days before the due date, on the due date, and X days after. Automated reminders save the awkward "just checking in" message.

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When to skip PayPal invoicing (and what to do instead)

PayPal invoicing is convenient, but it has real limits:

For one-off projects, quick gig work, or international freelance clients already on PayPal, these trade-offs are fine. For ongoing client relationships, recurring retainers, or clients who need a formal PDF for their accounting department, consider creating a professional PDF invoice with our free invoice generator and requesting payment via bank transfer, check, or any method you prefer. That way your invoice — and your records — belong to you.

You can also start from a polished layout with invoice templates for Google Docs if you work primarily in Google Workspace.

For a broader look at sending invoices beyond PayPal, see how to send an invoice and how to write an invoice for beginners.

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Common mistakes to avoid

Vague line item descriptions. "Freelance work — June" tells your client nothing. Write "Website copywriting — 4 landing pages, delivered June 3–10." Specificity prevents payment disputes.

No due date. An invoice without a due date is an open-ended request. Clients deprioritize them. Always set one, even if it is just "Due upon receipt."

Wrong currency. If your client is in Canada and you invoice in USD, they may hesitate or convert incorrectly. Confirm the preferred currency before sending.

Ignoring the fee. Skipping fees awareness is a common beginner slip. Factor the PayPal processing cost into your rate or add it as a line item so you receive the full amount you intended.

Losing your invoice records. PayPal's dashboard is convenient, but it is not a substitute for your own records. The IRS recommends keeping business records — including invoices — for at least three years (longer in some cases). Export or save copies of your paid invoices regularly.

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Frequently Asked Questions

Does it cost money to send an invoice on PayPal? Creating and sending invoices is free. PayPal charges a fee only when your client pays — currently 3.49% + a fixed fee for goods and services transactions, according to PayPal. Check PayPal's current fee schedule, as rates can change.

Can clients pay a PayPal invoice without a PayPal account? Yes. Clients can pay with a credit or debit card directly from the invoice email, even if they have never created a PayPal account.

Can I edit a PayPal invoice after sending it? Yes, as long as the client has not paid yet. Once payment is made, you cannot edit the original invoice — you would need to issue a new one or process a refund.

How long does it take to receive money through a PayPal invoice? Most payments credited to your PayPal balance appear instantly. Transfers to a bank account typically take 1–3 business days, though instant transfer options may be available for an additional fee.

Is PayPal invoicing good for all freelancers? PayPal invoicing works well for straightforward client payments, especially with international clients. For more control over branding, payment terms, and record-keeping, many freelancers also create a PDF invoice and request payment separately — for example, via our free invoice generator.

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Need to understand invoice payment terms like Net 30? See what does Net 30 mean on an invoice for a full breakdown.