What it does
PayPal offers business checkout, payment links, invoices, subscriptions and payout tools alongside its consumer wallet. Freelancers can send branded invoices and let customers pay without opening a PayPal account. Business payment fees and account requirements depend on the merchant's country; the examples here cover US accounts.
A service business can choose an invoice for an itemized bill or a payment link for a simpler request shared through a message. PayPal invoices support a business logo, taxes, discounts and notes. Send one by email or share its link, then follow its sent, opened and paid status. Recurring invoices and automatic reminders help with repeat work.
Customers do not need a PayPal account to pay an invoice. Available methods depend on their market; Venmo is a US option. Creating and sending invoices is included with a PayPal account, while collecting payment incurs fees.
US invoice payment costs
These domestic rates apply to USD invoice payments received by US accounts:
| Customer payment method | Fee |
|---|---|
| PayPal Checkout, Venmo or Guest Checkout | 3.49% + US$0.49 |
| Credit or debit card, Apple Pay or another third-party wallet | 2.99% + US$0.49 |
| Pay Later | 4.99% + US$0.49 |
| ACH bank payment | 1%, capped at US$10 |
International invoice payments add 1.5 percentage points. Currency conversion has separate terms. PayPal also lists an optional Invoice Subscription Service at US$14.99 a month; it is separate from ordinary account access to invoicing.
For a US business account, the business must be organized in, operating in or resident in the United States or its territories. PayPal may request business information, government identification and proof of address during verification.
To move an available balance to a bank on the website, open Wallet > Transfer Money > Transfer to your bank. Standard transfers have no transfer fee and usually take one to three business days. Instant Transfer carries a fee and normally arrives within minutes, although bank processing can extend that time. Weekends and holidays affect standard transfers.
Strengths
- Customers can pay invoices without a PayPal account
- Invoice templates, recurring schedules and reminders support repeat billing
- Invoice status distinguishes opened bills from paid ones
Watch out for
- International invoice payments have an additional percentage fee
- Faster bank withdrawals cost extra
Best for
- Freelancers sending itemized bills to clients
- Businesses adding PayPal wallet checkout alongside card payments
Sources
- PayPal business payment solutions (Oct 27, 2026)
- PayPal Invoicing (Oct 27, 2026)
- PayPal US merchant and business fees (Oct 27, 2026)
- PayPal US User Agreement (Oct 27, 2026)
- Confirm your identity with PayPal (Oct 27, 2026)
- Withdraw funds from your PayPal account (Oct 27, 2026)