Payment methods refer to the ways that clients can pay the invoices you send them. It can be anything from bank account transfer to payment via PayPal.
A payment method is a way to pay. You’ve probably noticed when you receive an invoice that there’s at least one payment method listed on the invoice. Some suppliers accept several different payment methods, so that you can choose the one that suits you best.
In general, clients also appreciate having several options for how to pay.
Different ways for clients to pay
There are many different payment methods. Here are some of the most common ones:
- Bank transfer. This is a common way for clients to pay invoices. To let clients use this payment method, you have to include your bank details on the invoice, including SWIFT if it’s an international payment. Your bank can charge you a fee for this.
- You can also include a link to a payment gateway such as Stripe or PayPal on your invoice. The provider will charge you a fee for this, generally a small percentage of the invoice sum. They can also charge your client for the use of credit cards.
- If your clients pay at the time of purchase, they can pay with cash if you have a point of sale system (POS). This is common if you run a physical store.
- Clients can pay with a card at the time of purchase if you have a point of sale system (POS) or if you run an online store that’s integrated with a payment gateway.
There will also be payment methods that are specific to the country you operate in, and it’s a good idea to offer those payment methods as well, as clients will be familiar with them.
Payment methods are part of your payment terms
The payment method is part of what’s called payment terms. Payment terms is any information related to the payment and includes: the total amount, due date, payment method, information about late fees, interest, returns and warranties.