In 2024, the number of credit card transactions in the United States exceeded 56 billion. Offering credit cards as a payment option is no longer just for customers’ convenience; it’s a necessity for businesses.

Below, we’ll explain the benefits of offering credit card payments on invoices, how they can help with customer retention, and the practical steps for getting started. We’ll also look at some of the costs and potential challenges so you can make an informed decision about whether to accept credit card payments on your business’s invoices.

What’s in this article?

• How do you add credit card payment options to invoices?
  
• What are the benefits of offering credit card payments on invoices?
  
• How can credit card payment options improve customer retention?
  
• What are the costs of accepting credit card payments on invoices?
  
• How to accept credit card payments on invoices with Stripe
  
• What are the challenges of invoicing with credit card payments?
  
• How Stripe Invoicing can help
  

How do you add credit card payment options to invoices?

Accepting credit card payments on invoices starts with choosing the right payment processor, connecting it with your invoicing system, and educating your clients about how to pay.

First, select a payment processor that offers invoicing features or integrates with your existing invoicing system. Most invoicing platforms (e.g., FreshBooks, Zoho, QuickBooks) allow you to link payment processing directly with your account through a simple integration.

Next, when you create an invoice for your client, there’s usually an option to add a “Pay Now” button that links directly to the payment processor. This is where you can offer credit card payments. Ensure your customers know they can pay with a credit card by making the option visible in your invoices and providing any instructions they might need.

What are the benefits of offering credit card payments on invoices?

By allowing customers to pay invoices with credit cards, you can accommodate customers’ changing payment preferences. Here are the benefits of offering credit card payments on invoices:

• Improved cash flow: Credit card payments help improve cash flow since these payments are authorized almost immediately and processed quickly, compared to other payment types. This means you won’t be left waiting for checks or Automated Clearing House (ACH) bank transfers to clear.

• Convenient international transactions: Credit card payments simplify cross-border transactions by eliminating the need to navigate exchange rates or unfamiliar banking systems.

• Built-in security measures: These payments also come with built-in security features to manage the risk of fraud or disputes.

• Lower administrative overhead: Automating the collection process eliminates manual tasks such as depositing paper checks and reconciling bank statements, freeing time for other business activities.

• Higher on-time payment rates: By providing an immediate payment option, you remove the friction that often leads to delays.

• Support for recurring or saved payments: Securely storing card information allows for automated billing of repeat services, ensuring a predictable revenue stream and a simple experience for long-term clients.

How can credit card payment options improve customer retention?

Offering credit cards as a payment option can boost customer retention by making payments faster and easier for customers, which makes them more likely to return to your business in the future.

• Faster, lower-friction checkout: Speed is an important factor in customer satisfaction. A simplified credit card checkout allows customers to complete transactions in seconds, reducing abandonment and making the path to a repeat purchase as simple as possible.

• Customer trust and familiarity: Credit cards are a global standard. Providing a payment method that customers already use and trust builds immediate confidence in your brand, especially for new or international clients.

• Stored payment details: Modern processors allow you to securely store card information for future use. This "one-click" convenience encourages return visits because customers don't have to re-enter their details every time they want to buy.

• Reliable recurring billing: For businesses that rely on a subscription or recurring billing model, credit cards enable recurring payments. This model ensures a predictable revenue stream and prevents service interruptions caused by forgotten manual payments.

• Consistent payment options: Offering the same trusted card options across all your channels—whether on a digital invoice, on your website, or at a physical terminal—creates a cohesive and professional brand experience.

• Clear records and dispute handling: Credit cards provide customers with transparent transaction histories and robust fraud protection. Knowing they have clear records and a professional path for dispute resolution gives customers the confidence necessary to maintain a long-term relationship with your business.

Offering credit card payments is a simple but powerful way to create a positive interaction that builds trust with customers.

What are the costs of accepting credit card payments on invoices?

The most common fees for accepting credit card payments are transaction fees, which are usually a percentage of the payment plus a fixed amount per transaction. You can pass on credit card processing fees to clients by adding a small percentage or flat fee to the invoice to cover those costs. However, these fees can upset clients, so carefully weigh the pros and cons of this tactic and consider building these costs into your pricing model.

Some payment processors also charge monthly fees to use their services or setup fees for more advanced features or integrations. If you accept payments in multiple currencies, you might also need to pay conversion fees, which are often about 1% of the transaction amount.

Research your payment processor’s chargeback fees. If a customer disputes a credit card charge, your payment processor might charge you a fee (usually $15–$25) to resolve the dispute. Chargebacks happen, but being diligent about invoicing and communicating with customers can help minimize them.

How to accept credit card payments on invoices with Stripe

Stripe Invoicing makes it easy to create invoices that support credit card payments. Setup is fast, secure, and simple.

Stripe supports a wide range of credit card types, including Visa, Mastercard, American Express, and some international cards. Here’s how to accept card payments:

1. Set up Stripe: Sign up for a Stripe account. After you’re onboarded, you can start sending invoices from the Stripe Dashboard. Stripe can also integrate with ecommerce platforms like Shopify to accept online payments.

2. Create and send an invoice: Stripe adds a payment button when you create an invoice. When your client receives the invoice, they can click on the button, enter their credit card details, and pay instantly. Stripe securely handles every aspect of the payment in compliance with payment standards like the Payment Card Industry Data Security Standard (PCI DSS).

3. Get paid: Once a customer pays with a credit card, the funds are processed and then deposited into your Stripe account before being sent to your bank account. Stripe allows you to track payments in real time.

What are the challenges of invoicing with credit card payments?

Before you accept credit card payments on invoices, it’s important to understand the following potential obstacles:

• Chargebacks: If a customer disputes a payment, they can initiate a chargeback in which the credit card company refunds the payment. If chargebacks become a pattern, they can affect your relationship with your payment processor, potentially leading to higher fees or even account suspension.

• Risk of fraud: Credit card payments are generally secure but there’s always a chance of fraud, especially if you work with international clients or handle large payment volumes. Payment processors have extensive tools to detect fraud, but you still need to be vigilant. Fraudulent charges can cause financial losses and potentially damage your business’s reputation.

How Stripe Invoicing can help

Stripe Invoicing simplifies your accounts receivable (AR) process—from invoice creation to payment collection. Whether you’re managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate accounts receivable: Easily create, customize, and send professional invoices—no coding required. Stripe automatically tracks invoice status, sends payment reminders, and processes refunds, helping you stay on top of your cash flow.

• Accelerate cash flow: Reduce days sales outstanding (DSO) and get paid faster with integrated global payments, automatic reminders, and AI-powered dunning tools that help you recover more revenue.

• Enhance the customer experience: Deliver a modern payment experience with support for 25+ languages, 135+ currencies, and 100+ payment methods. Invoices are easy to access and pay through a self-serve customer portal.

• Reduce back-office workload: Generate invoices in minutes and reduce time spent on collections through automatic reminders and a Stripe-hosted invoice payment page.

• Integrate with your existing systems: Stripe Invoicing integrates with popular accounting and enterprise resource planning (ERP) software, helping you keep systems in sync and reduce manual data entry.

Learn more about how Stripe can simplify your accounts receivable process, or get started today.