Invoice With a Payment Link vs. Sending Your Bank Details: Which Is Better?

As far as getting paid goes, the method you choose may affect how quickly and securely your business is paid. Some businesses include a payment link on their invoice to prompt immediate payment, while others share their bank details. Both work, but they suit different situations.

In this article, we will discuss the difference between invoice payment links and bank-detail invoicing, which bank details to include on an invoice, how to set up a payment link, and which method works best for different businesses.

What Is Invoice Payment by Payment Link?

An invoice payment link is a clickable link on the invoice that the client uses to pay online. When the client clicks it, they are redirected to a secure page where they can complete payment using available options, such as a card or a digital wallet.

This method allows the client to skip manual bank transfers entirely. Instead, they can pay with just a few clicks directly from the invoice.

Because of its convenience, payment links are becoming popular among freelancers and businesses that want to get paid quickly and without delays.

What Is Invoice Payment via Bank Details?

Invoice payment via bank details means including your banking information on the invoice so the client can make a direct bank transfer to you. The invoice typically includes:

• Account name
• Bank name
• Account number
• Sort code or routing number (for domestic transfers)
• IBAN and SWIFT/BIC code (for international transfers)

With this method, the client logs in to their online banking platform and processes the payment manually using those details.

This is a traditional approach that has been used for years and remains widely accepted, particularly in B2B transactions. However, the manual steps involved can sometimes delay payment.

Can You Send an Invoice Without a Payment Link?

Yes, absolutely. A payment link is optional. Many businesses, particularly those dealing with other businesses or handling large transactions, prefer to send invoices with bank details only. Your client receives the invoice, logs into their bank, and transfers the amount directly.

You only need a payment link if you want to offer clients a faster, one-click payment option. If your clients are comfortable with bank transfers, there is no requirement to use a payment link at all.

Can You Send a Payment Link Without an Invoice?

Yes, you can send a standalone payment link without attaching a formal invoice. This is useful for:

• Repeat clients who already have a record of what they owe.
• Quick or informal requests where a full invoice isn’t needed.
• Deposits or partial payments before a job starts.

That said, for most business transactions, it is best practice to attach an invoice. It creates a paper trail, looks more professional, and makes reconciliation easier for both parties.

Payment Link vs. Bank Details (Key Differences)

The two methods both get you paid, but differ in how payments are processed. Here is a side-by-side comparison:

Is It Free to Send an Invoice or Payment Link?

Sending an invoice is free with Billing. However, some fee considerations depend on the payment method your client uses:

• Bank transfers: Usually free or low-cost, depending on your bank and location. No third-party processing fee applies.
• Payment links: The payment processor (e.g., Stripe, PayPal) typically charges a small transaction fee, usually a percentage of the amount paid. This fee is normally borne by the business, not the client.

So while creating and sending invoices costs nothing, accepting payments via a payment link will incur a small processing fee per transaction. Whether that trade-off is worth it depends on how much you value faster payment.

How to create an invoice payment link with Billing

Before you can add a payment link to an invoice, you need to set up your preferred payment link in the settings. Doing this will enable the payment link in the invoice you create.

Step 1: Log in to your Billing account

First, log in to your Billing account and open the main workspace, where all invoice settings are located. If you don’t have an account, you can sign up here. 

Step 2: Set up payment links in Settings

In the settings section of your account, set up your preferred payment link. Without this step, you won’t be able to add a payment link to your invoice.

Step 3: Create a new invoice

After completing the previous steps, return to your dashboard and create an invoice. Include the client details and the products or services to be charged. Also, add the item description, price per item, number of items, any applicable taxes, and the invoice due date.

Step 4: Attach the payment link

Since you have already set up your payment link in step 2, rest assured that the invoice we are creating will include the payment link the client will use.

Step 5: Review and send the invoice

After completing all the steps to create an invoice, review and send it to the client for payment.

Pros and Cons of Using a Payment Link

Payment links are an easy way for clients to settle their bills online. Like all other payment options, payment links have their pros and cons. Analyzing both sides can help businesses determine whether or not to implement this option for their clients.

Pros

1. Faster payments: Using payment links can speed up the process by streamlining it. The client only needs to click the link to pay immediately.
2. Improved client experience: The process is also convenient for clients, as they don’t need to fill out forms or send payment to have their payment processed.
3. More professional look: Using payment links can also give your business a more professional look, making it appear organised.
4. Ideal for remote clients: The system is also ideal for clients based in a different country from the business, as they don’t need to provide complex banking information such as routing numbers or international transfer codes.

Cons

1. Transaction fees are incurred: the payment system charges a percentage on each transaction. This means you will receive slightly lower amounts for each payment.
2. Payment platform setup is required: To be able to use the payment link option, you need to set it up first.
3. Some clients may not like the idea: Some clients may not like the idea of using a payment link because they would prefer to send their money via bank transfer.

Pros and Cons of Sharing Bank Details

Including bank details on an invoice is still a common practice for many organizations, especially for bank transfers. It is a simple and widely used method, but it has limitations.

Pros

1. No payment processor fees: Bank transfers can avoid the fees charged by the online payment processors.
2. Familiar with many businesses: Many businesses, especially in B2B transactions, are accustomed to paying invoices via bank transfer.
3. For large transactions: Bank transfers can be more convenient when dealing with large transactions since they do not have the same restrictions as some online payment processors.
4. Easy to implement: Simply include your banking details on the invoice.

Cons

1. Slower Payment Process: The client must manually sign in to their banking platform and enter the payment details, which may delay the payment.
2. Error Risk: There is a higher risk of errors when the client manually enters the bank details, especially if they enter the account number incorrectly.
3. Security Issues: There is a security concern if fraudsters intercept the invoice containing the bank details.

Which Is Better for Your Business Type?

Choosing the most suitable payment option depends on your business model. It also depends on the nature of the clients you are working with. 

For freelancers

For freelancers, using a payment link can simplify the process. This is especially true, as most freelancers typically work with several small businesses or individuals. 

For service-based businesses

For agencies, designers, or marketing consultants, both options are available. Payment links can make the process easier for the clients. Bank transfers can be helpful to some clients.

Product-based businesses

For product-based businesses, payment links tend to perform well because they allow customers to complete payments in a single step, similar to an online checkout process.

International client-based businesses

For international client-facing businesses, payment links can be more useful by eliminating the need for clients to enter complex banking details such as IBAN and SWIFT.

B2B-based businesses

For B2B businesses, especially those operating primarily in a B2B environment and dealing with large organizations, bank transfers remain a primary method for many organizations seeking to pay invoices through their own banking systems. 

In many cases, both payment methods can be offered on the same invoice.

Security Considerations You Should Know

Security is an important factor when deciding between the two methods, particularly as invoice fraud continues to rise.

Invoice fraud

Scammers may intercept the invoice and alter the account details before the client receives it. The client will then send the money directly to the scammer if they send the altered account details. This type of fraud typically occurs when the invoice is sent via an insecure channel.

Phishing risks

Some of these fraudsters also send invoices that appear to be from legitimate companies. This means that if a client is not very cautious, they may end up sending money to these fraudsters.

Payment links can reduce your risk of exposure

Using payment links means that clients are redirected to secure payment sites where they can make their payments. This reduces the need to include bank details on the invoice, which unauthorized parties could access.

This is why most businesses prefer using payment links since they are safer compared to bank details.

Frequently Asked Questions

1. Is it safe to put bank details on an invoice?

Yes, including bank details on an invoice is safe, as it is a common method for receiving bank transfers. However, there is some risk, as fraudsters could intercept the invoice. Therefore, it is advisable to send an invoice via a secure channel.

2. Do payment links cost extra for the client?

Sometimes, these payment links can be processed by payment providers. Providers may charge transaction fees based on the payment method. Most often, the business being paid will bear the transaction fees and not the client.

3. Which method results in faster payment?

Payment links are typically faster because clients can complete payments immediately by clicking the link. On the other hand, bank transfers require clients to enter payment information, making the process more complex.

4. Can I offer both options on the same invoice?

Yes, it is possible to include both a payment link and bank details on the same invoice, giving customers the option to choose the most suitable payment method.

5. Can I send invoices without using payment links?

Yes. Including a payment link is entirely optional. Many businesses send invoices with bank details only, and clients pay via bank transfer. Payment links are simply an additional convenience you can offer.

6. Can I send a payment link without an invoice?

Yes. Standalone payment links work well for repeat clients, quick requests, or deposits. However, attaching an invoice is generally a better practice as it provides a formal record for both parties.

7. Is it free to send an invoice or a payment link?

Creating and sending invoices with Billing is free. Bank transfers are usually free or low-cost. Payment links incur a small transaction fee charged by the payment processor, which is normally paid by the business receiving the payment.

8. Should I put my account and routing number on an invoice?

If you are invoicing clients in the US or receiving US bank transfers, yes, include both your account number and routing number. For international clients, an IBAN and SWIFT/BIC are typically required instead.

9. What bank details should I put on an invoice?

For domestic payments: account name, bank name, account number, and sort code or routing number. For international payments: also include your IBAN and SWIFT/BIC code.

Final Thoughts

Both payment links and bank transfers can work well for invoicing, but the best option depends on your business needs. Payment links typically offer faster, more convenient payments, while bank transfers remain a reliable, traditional option. In many cases, offering both options gives clients the flexibility to choose how they prefer to pay.