The founder’s guide to invoice payment methods

You send the invoice. You wait. You follow up. You wait some more. For a lot of founders, getting paid can sometimes feel harder than it should — and the payment method you’re offering (or not offering) could be part of the problem. For example, if you require payment via check, a client who’d pay instantly with a credit card might sit on your check request for weeks. Or, if you only accept credit card payments, a customer who prefers ACH might procrastinate on payment  — and your company might end up absorbing card processing fees on every large invoice, which can add up fast. 

This guide starts with the basics by answering this question: “What is an invoice payment method?” Then, you’ll learn about the most common invoice payment methods; how they compare on speed, cost, and reliability; and how to build a payment setup that works for your business.

An invoice payment method is the mechanism that your customer uses to send you money once you’ve billed them, like a bank transfer or a card payment. You should specify the invoice payment method on the invoice itself, either as instructions (such as “please remit via ACH to the following account”) or as an embedded link that your customer can click to pay directly. 

Common invoice payment method examples 

There are a number of different invoice payment methods. Examples include: 

• ACH transfers
• ACH debit
• Credit and debit cards
• Wire transfers
• Checks
• Digital wallets (like Apple Pay, Google Pay, and PayPal) 

Each option comes with different processes, fees, and processing times, so consider those factors to determine the right mix for your business.

The payment method you choose will directly impact your cash flow. Using slower methods means you’ll have a longer gap between when you do the work and when you receive the payment for it. Higher-fee payment methods take a cut of what you’re owed, so you’ll get less money. And methods that put the customer in control of timing, like checks or bank transfers that they initiate, introduce more uncertainty into payment timing. 

Here’s what you should consider when choosing invoice payment methods for your business.

Speed of getting paid

Each payment method has a different turnaround time. A domestic wire can settle the same day, whereas an ACH transfer takes 1 to 3 days. If you accept a check, you’ll need to wait for it to clear after you deposit it (assuming it clears at all). When your business is in its early stages and cash flow is tight, that gap between sending an invoice and receiving funds can be the difference between making payroll on time and scrambling to gather last-minute funds.

Cost 

Fees can be tricky to account for because they’re often hidden. Credit cards can run from 1.5% to 3.5% per transaction, which might sound small — until you’re invoicing for $20,000 and paying $600 in fees. Wires can cost up to $50 or more in fees (which vary by bank), and these fees are often charged on both sides of the transaction. But ACH is free (or nearly free).

Reliability and risk 

Credit and debit cards will fail when they expire, and checks can bounce. But ACH debit — where you pull payment from your customer’s account with their prior authorization — has some of the highest success rates of any method. It also gives you control of the timing for each payment.

If you rank payment methods by speed alone, wires win. But speed isn't the only variable that matters. The table below ranks the most common invoice payment methods across speed, cost, and reliability, so you can see the full picture before deciding what options you’ll accept.

The table above gives you the basic numbers, but the details are much more nuanced. Here's what you need to know about each payment method before deciding what to put on your invoices.

ACH transfers

ACH transfers are the best for B2B invoicing. They’re either free or very close to it, they typically settle in 1 to 3 business days, and they work well for most domestic payments. There’s just one catch: Your customer needs to initiate them, so the timing is still within their control.

ACH debit

With ACH debit method, you’ll initiate the transfer with your customer’s prior authorization, which means payment will go out on the due date, every time. With its low cost and high reliability, it’s the best option for recurring invoices and subscription billing.

Credit card payments 

Credit cards are fast and familiar, so they’re easy for customers to use. They’re also a reasonable choice for invoices under $5,000 because the processing fee (usually around 1.5% to 3.5%) is easier to absorb or pass along. Above that threshold, the fees get harder to justify.

Wire transfers 

Wire transfers are a good choice for time-sensitive payments over $10,000 because they settle quickly when sent domestically. They’re not a great fit for everyday invoicing, though, because the fees can reach up to $20 (sometimes more, depending on the bank) for both parties.

Checks 

Checks are slow, manual, and sometimes, they bounce. They’re still common in some industries, but if you need steady, predictable income, you may want to avoid them.

Digital payment platforms 

Digital payment platforms (like Apple Pay, Google Pay, and PayPal) offer convenience, especially for customers used to consumer payment experiences. The fees are comparable to cards, fund transfers can take several business days to hit your bank, and B2B adoption is still uneven. It helps to treat them like a supplementary option, not a primary one. 

The key to better invoicing is to provide your customers with just a few payment methods that work for them. It’s a fine balance: Giving customers options increases the chances that they’ll pay on time, but accepting all methods of payment without a well thought-out policy means you’ll end up absorbing fees that you didn’t plan for. 

Offer multiple options

Start by offering two or three methods that cover different customer preferences. Then, set up a payment policy with clear rules about each method, and make sure to include it in your customer contract.

Balance customer convenience with cost control

Accepting credit cards can be convenient for customers, but expensive for you. ACH is cheap and reliable, but requires a little more setup. The question isn't which method is objectively better; it's whether the cost of a customer's preferred method outweighs the cost of them paying late because you didn't offer it.

Align payment methods with invoice size and frequency

You can save yourself a lot of money and headaches if you follow a few simple rules:

• Accept credit cards for invoices under $5,000.
• Require ACH for larger, regular invoices. 
• Save wires for large one-off or international payments.

If you’re setting up recurring billing, consider using ACH debit. It's the closest you’ll get to guaranteed on-time payment.

If you’re on a mission to make it easier for your customers to pay you, choosing the right payment method is half the job. The other half is making sure that your customer can actually use that option without friction.

Include clear payment instructions on invoices

Whether you’re using an invoice generator, accounting software, or a Word template, every invoice you send should include your accepted payment methods, remit-to information, and net terms — no hunting required. If you're offering ACH, put your account and routing number directly on the invoice.

Embed payment links and automate reminders

Including a payment link in your invoice makes it easy for customers to pay as soon as they receive your invoice. Pair that with automated reminders sent before the due date, on the due date, and after for late payments (as needed), and you've eliminated most of the manual follow-up without having to write a single awkward email.

Use invoicing tools or banking platforms with built-in payments 

Mercury Invoicing makes it possible to handle payments from inside your banking platform. You can send invoices that support credit card, Apple Pay, Google Pay, ACH transfer, ACH debit, and wire. Incoming payments are automatically matched to open invoices the moment they land, with no reconciliation required on your end.

Choosing invoice payment methods for your business can feel like a small consideration — until something goes wrong. If you set up the wrong mix or forget to establish a payment policy, you’re more likely to encounter delays, amass fees you didn’t plan for, and lose valuable time while chasing payments.

The good news is that it just takes a few steps to get  right: Default to ACH for most domestic invoices, set a threshold for when you'll accept cards, make your payment instructions impossible to miss, and automate the follow-up messages. Do this, and most of the friction will disappear on its own.

Want a setup that handles invoicing and banking in one place, with built-in support for every major payment method and automatic reconciliation when payments land? Explore Mercury Invoicing to get started.