WooCommerce Invoice Payment Method: A Complete Guide

No wonder WooCommerce is the leading eCommerce platform, with 36.68% of the market share. And why wouldn’t it be?

It is indeed a one-stop solution to your eCommerce requirements. 

The payment gateway integration is one of the things WooCommerce makes tremendously easy for store owners. You can accept payments within a moment, and WooCommerce allows you to integrate a wide range of payment methods into your store.

However, both you and your customers should keep a record of what payment method has been used. 

And, what better way to record it than to include it in your invoices!

In this article, I will discuss the nitty-gritty of integrating WooCommerce payment methods into your invoices. I’ll cover everything from how to add and display the WooCommerce invoice payment method to tracking and using them for better finance management.

What are invoice payments? 

An invoice payment is a payment option that allows a customer to pay for their products after receiving the invoice. It’s like the “buy now, pay later” system, where you receive the product or service first and then pay for it.

A normal invoice contains the order details, customer and company information etc. 

But when it’s an invoice payment, it must include payment related details like payment gateways, a due date, and a pay later option to allow the customer to pay the bill from the invoice.

How does invoice payment work?

First, you send an invoice to your customers with a payment link or any other payment option. When your customer receives the invoice, they can pay the bill through the given payment method within a certain period of time.

That’s it! It takes only 1-2 minutes to pay. But normally, companies allow their customers to complete the payment within 24- 48 hours or even a few days.

What are invoice payment terms?

In simple words, invoice payment terms are the agreed terms and conditions between a business and a customer for when and how payment should be made. To ensure a smooth payment process, it’s important to clearly define and communicate your invoice payment terms to your customers.

The standard invoice payment terms are:

• When Payment is Expected
• Invoice Due Date
• One or multiple currencies in which you expect to be paid
• Payment Method and Details
• Other conditions, such as late payment fees or early payment discounts.

Again, you have to fulfill all the other essential elements or legal invoice payment requirements to manage the entire process successfully.

What are the legal considerations for invoice payments in WooCommerce?

Since invoice payments allow you to pay after receiving the products, it’s important to be aware of the legal requirements for these transactions. To keep your billing system hassle-free and organized, make sure to include these key information in your invoices.

• Your company details (name, location, and contact number)
• Your trading address
• The order details (product name, quantity, and price of each product)
• Customer details (name, email, and contact number)
• An invoice number 
• Individual and total product/order price 
• The due date or credit terms (payable immediately or within 7, 30, 60 days, etc.)
• The details of the available payment methods (website payment link, cash on delivery, bank transfer)
• Stage of payments
• Total added tax

As a Woocommerce store owner, you can handle invoice payments in various ways. However, the most common way to send Woocommerce invoice payments is through e-invoicing. 

E-invoices are emailed to the customer with the same information as a paper invoice but with a direct payment option. 

Now, what is a payment gateway?

A payment gateway is an electronic connection between an online shopper and an offline business, allowing the latter to receive funds from the former. It is responsible for collecting information, verifying the availability of funds, and facilitating payment to the merchant.

A payment gateway is a piece of cloud-based software that facilitates online financial transactions between buyers and sellers. When a customer pays with a credit or debit card, the transaction is handled by the software contained within the POS terminal or card reader.

In simple words, you need to sign up with a payment gateway provider to accept payments online in your eCommerce store. The provider will charge a fee for every transaction.

So, How to Add WooCommerce Invoice Payment Option?

It’s simple actually! To send a Woocommerce invoice payment pdf to your customers, you just have to enable the payment options WooCommerce dashboard. Then you can add  the details for each method. 

This can be done in just 3 simple steps: 

Step 1: Simply go to Woocommerce >> Settings >> payments

Step 2: You will see three payment gateway methods to pay with an invoice by default. These are:

• Direct bank transfer
• Check payment
• Cash on delivery

You can enable any one or even all of the options. 

Step 4: Finally, hit on Save Changes and your preferred payment option will be activated for your invoices.

So, you have the three basic payment gateways that offer Woocommerce invoice payments. 

But, there are also certain easy online payment options available, like Stripe, PayPal, Woocommerce payments etc, to accept invoice payments in WooCommerce.

So, what if you want to add any other online gateway option for your Woocommerce invoice payment?

Well, unlike many of its competitors, WooCommerce supports many other popular online payment gateways. After you sign up with a payment gateway provider, you can install its dedicated extension and start accepting payments immediately.

Adding them is also pretty straightforward. Simply go to WooCommerce >> Settings >> Payments. Then, click on the Discover other payment providers under the Recommended payment providers section.

Once you hit the link, a new tab will open and you will witness something magical. 

All your favorite payment gateways are already here. You can also have the option to filter all the free payment gateway options just by clicking Free just like the picture below.

Now, you just have to install the extensions you like, and you’ll be ready to receive your payments in seconds!  

It’s as simple as that. 

Now, which invoice payment gateway should you choose?

There’re a lot of gateway options available, but if you’re new to managing WooCommerce invoice payments, it’s easy to get confused about which one to choose for the optimum performance. 

So, let’s discuss a little about the best but free payment gateways you can choose for WooCommerce:

• Stripe: Stripe is the gold standard for online credit card transactions. WooCommerce has built-in support for Stripe in over 45 different countries and in 135 different currencies. 

• PayPal: When it comes to online shopping, PayPal is one of the most widely used payment options. WooCommerce has in-built support for accepting payments through PayPal.

• WooCommerce Payments: The developers of WooCommerce also offer a payment system called WooCommerce Payments. It’s a more streamlined payment process for your customers and a more secure gateway for your business.

These are the most popular payment options across the globe for Woocommerce invoices. All of them are highly secured and offer seamless payment for both customers and store owners.

Bonus Tip:

If you’re managing a Woo store with millions of products, and the only way to receive payments is through invoice payment, you should integrate accounting software to streamline your WooCommer payment process.

However, sometimes you may need to add multiple payment methods for your Woocommerce invoice. 

Can you offer multiple payment options in WooCommerce, including invoices?

Yes, you can offer multiple payment options in WooCommerce. For example, I’ve enabled all three default payment gateways in Woocommerce. 

So, when a customer places an order from my store and comes to the check-out page, they can select any one payment option from the 3.

But, when they receive the invoice payment, they can only see their selected payment option.

How to Configure gateway options to accept invoice payments in Woocommerce?

Just adding the invoice payment isn’t enough. You’ll also have to configure your preferred payment method with all the details for activating the billing process.

So, Let’s now explore the setup process for all the default payment options as well as additional payment gateways.

1. Direct bank transfer

Direct bank transfer option is best for those businesses (like electronics, gold, diamonds,) that sell high-end products.

To set up the bank payment, just click on WooCommerce >> Settings >> Payments >> Direct bank transfer and you’ll see an interface like below:

First, enable the bank transfer option. The title and description are filled in by default. However, you can change it if you want.  

If you have any specific requirements regarding the bank payment, you can also add it in the instruction tab. Otherwise, just keep it blank.

Next, add your bank details like account name, account number, bank name, sort code, IBAN and BIC / Swift. You can add multiple bank details to give your customer more flexibility.

Now, just click on Save Changes and your bank details will be added in the invoice.

Bonus:

It’s not recommended to add personal bank details here. If you’re just opening your online store, then first create a business bank account with your store name and then provide the details of that account. 

2. Check payments

Check payment is the best option if your customer purchases more expensive products and needs to pay the bill via the bank (for example: Cars, properties, etc). This payment gateway is also great for test purchases.

To set up a check payment, again go to Woocommerce >> Settings >> Payments >> Check payments.

You don’t have to edit anything here. But if you have any concerns, enter them in the instruction tab. 

3. Cash on delivery (COD)

You can choose the cash on delivery, if you sell medium-range products (for example, apparel products). And it’ll also be the most popular payment gateway for local online businesses. 

Just mention how much the customer has to pay in the invoice and mark the payment option as cash on delivery. 

To set up this payment gateway, go to Woocommerce >> settings >> Payments >> Cash on Delivery.

Now, all the settings will be automatically filled up by default. You just have to enable your preferred shipping method. 

You’ll get three primary shipping methods:

1. Flat rate
2. Free shipping
3. Local pickup

There are several criteria for each shipping method. You can even choose multiple shipping methods at a time. Then, simply click on Save Changes, and you’re done.

Now, what about configuring additional payment methods if you’ve installed any?

Well, all the setting options for the payment extensions are very simple and straightforward. Just follow the on-screen instructions, and the additional gateway will be available.

For example, I’m showing you the setup interface of your PayPal account below:

How to create a WooCommerce Invoice payment link?

Till now, we’ve seen different payment options for Woocommerce invoices. But, there is another popular Woocommerce invoice payment option, which is the invoice payment link.

But, what is an invoice payment link?

An invoice payment link is simply a way to request your customer to pay for their products by clicking a Pay link button. This link is attached in the invoice and sent to your customer so they can pay without any hassle.

Unfortunately, Woocommerce doesn’t have any features to create and send WooCommerce invoice with payment link. 

So, to create such an invoice payment link, you’ve to rely on third-party plugins. 

What is the best WooCommerce payment link plugin?

There are several payment plugins available. But, one of the most popular still free for this is Sliced Invoices. This plugin is user-friendly and integrates seamlessly with your existing WooCommerce setup.

Create WooCommerce invoice payment link

The easiest way to send invoices with a payment link is by using a dedicated plugin. I’ll walk you through using the Sliced Invoices plugin.

Step 1: Install and Activate the Plugin

First, install the plugin from your WordPress dashboard. Simply go to Plugins > Add New Plugin and search for “Sliced Invoices.” Then, install and activate the plugin.

Here, I’ve already installed and activated the plugin, so it’s showing the “Active” button instead.

Step 2: Configure the Sliced Invoices Settings

Once you successfully installed and activated the plugin, go to Sliced Invoices > Settings > Invoices from your WordPress dashboard.

Choose when you want to receive email notifications, like when an invoice is viewed or paid. I’m selecting Invoice Paid to get notifications only when an invoice is paid.

Now, choose any Woocommerce invoice payment template you want for your invoices and click the blue Save button to apply the changes.

Step 3: Configure the Payment Settings

Now, set up the payment link so customers can pay directly from the invoice. Start by setting up the payment method.

This plugin lets you add bank details for customers to transfer money or create a link for PayPal or other payment methods installed on your store.

Here, I’ll enable the PayPal payment method. To do so, scroll to the bottom and expand the PayPal Gateway tab. Check the Enable checkbox to turn on the option.

After enabling it, we’ll have to choose the mode. There are 2 modes:

• Sandbox (for testing) and 
• Live (for real transactions). 

I recommend testing first, so select Sandbox. If you want to go live, select Live.

Now, for Sandbox mode, enter your Sandbox API Username, Password, and Signature from your PayPal account. If you selected Live mode, enter your live API details.

After entering the credentials, click the Save button. 

That’s it! Your payment link is ready to send to your customer. And, you’ll also be able to offer WooCommerce pay later option with a due date.

Include the payment link in a WooCommerce invoice

Now, let’s create an invoice to test it. Go to Invoices > Add New Invoice from your WordPress dashboard.

Enter a title in the Title field. This title is only visible to you in the dashboard.

Next, you have to select the client to whom you’re sending this invoice. You can choose an existing user or create a new client. I’m selecting an existing user by typing their username in the Choose Client field.

If you’re adding a new client, click Add New Client and fill in the required details, including the client’s email. Also, enter the details of the items or services in the Line Items section. 

In the Payment Settings section, check the PayPal box to add the payment link. If you have another plugin installed, you can create that payment link as well.

Note: If PayPal is not set up, you won’t see the PayPal checkbox.

Once everything is set, click the Publish button.

Send Woocommerce Invoice With a Payment Link

Now we are in the final stage of sending the invoice with the pay link. After publishing, you’ll see new options above the Update button. These options are: 

• Send the invoice via email.
• Download the invoice as a PDF.

If you want to send it immediately, click the email icon to open a popup. You can also send the invoice manually by downloading the PDF.

In the email popup, you can edit the email content and even send it to multiple recipients. Just separate the emails with a comma.

Click Send this Email to send the invoice. I’m using the default email content.

After sending the email, the customer will receive an invoice with a payment link. To test it, I checked the customer’s email account, and the invoice email was there.

When I opened the invoice, I saw a Pay With PayPal button at the top, which allows customers to pay directly through PayPal. The chosen template was applied successfully.

Once the customer clicks the button, they can pay the invoice using their PayPal account.

How to display the WooCommerce invoice payment method?

Once you’ve completed the configuration of the payment method, you have to add it to your invoice settings.

Unfortunately, Woocommerce doesn’t offer any dedicated feature to generate invoices. Additionally, if you go for WooCommerce manual invoice, it’s both time consuming and error-prone.

So, the easiest way to create such Woocommerce invoice payment is using third-party plugins.

There are several plugins available to do this. However, one of the more popular and free WooCommerce invoice plugins on which many Woocommerce experts rely is the Woocommerce invoice generator, Challan.

Why?

Well, it’s because this freemium invoice plugin offers a 3-in-1 package. It generates:

1. Invoice
2. Packing slip
3. Shipping label

I also use Challan for my personal Woo store to display payment methods in my invoices. 

How can you do this? 

Just, go to your WordPress dashboard >> Plugins >> Add New Plugin. Simply search for Challan to install and activate this plugin.

After you install and activate Challan, you will notice a new dedicated Challan menu in your WordPress panel. Hover over it and click on settings.

It will take you to the general settings tab, where you can fine-tune your custom invoice templates.

Scroll down to the Order Settings section and there you will find the Display Payment Method option.

Toggle to enable it, and that’s about it. Your invoices will now display WooCommerce payment methods in the invoices. Be sure to save the changes you make on the settings page.

Let’s check it out. Go to any recent order page and click on the Invoice download button to download the invoice.

As you can see, Challan’s WooCommerce invoice is displaying the payment method in the invoice, and that is also at the top section.

Well, Challan pro adds a plethora of options for you to customize your WooCommerce invoice. 

To display bank account details, go to Challan>>Settings and click on the Invoice tab again. Then scroll down at the bottom of the page till you find a dedicated option for displaying bank account details.

Now,  Make necessary adjustments and just click on Save Changes. Don’t forget to check how the invoice look.

As you can see, there’s a separate table showing the bank details where clients need to pay.

How to create woocommerce invoice payment pdf Free?

Once you make sure all the details of your invoice is correct, you’ve to create a WooCommerce invoice payment pdf. 

Simply, go to WooCommerce >> Order from your website. Then, click on the order for which you want to create the PDF.

And, once you’re in the order details, you’ll see a dedicated menu to download and print option for your woocommerce invoice payment pdf free.

Once you’re in the order details, you’ll find a dedicated menu where you can easily download and print your WooCommerce invoice payment PDF for free.

Just click on the download option and you’ll have an the proview of that PDF in a new tab.

How do I send an invoice to pay WooCommerce?

Sending an invoice to your customer is super easy if you’re using the Challan. This plugin automatically send pdf invoices based on the order status:

Simply go to Challan>> Settings from your dashboard. Choose the Settings tab from the menu, and make sure the Enable invoicing option is active.

There, you’ll find a section named invoice attach to email. You can choose the order status for which you want to send the invoice to your customers.

After selecting, hit on the save changes button. And, you’re done. 

Your invoice will be automatically sent to your customers which you have selected. 

How to track invoice payments in WooCommerce?

If you want your finances organized with timely payments, you must track your invoice payments in WooCommerce. You can effortlessly track your invoice payments automatically using invoice tracking plugins.

There are some advanced plugins available to track your payment and notify you. These plugins even filter out the invoices that haven’t been paid within the due date so that you can contact the customers.

Again, you can send automated emails to notify your customers to pay the bills as soon as possible.

How to send automatic invoice reminders in WooCommerce?

Woocommerce doesn’t offer any built-in features to send automatic invoice reminders. But, you can use some popular free plugin like Challan to send automatic invoice reminders to your customers.

How to manage invoice payments in WooCommerce?

Managing invoice payments is crucial to checking the financial flow in your store. So, here are some tips to manage invoice payments in Woocommerce:

• Invoice payment confirmation

After receiving a payment, it’s crucial to confirm that everything matches up with the invoice. From my experience, letting your customers know their payment was received is a simple courtesy that builds trust. 

You can use any third-party tool to automate the confirmation mail with invoices for real-time updates on payment status.

• Update payment records

Once you receive your invoice payments in Woocommerce, you have to update your records, mark invoices as paid, and input payment methods.

This practice not only keeps your invoice management accurate but also helps avoid confusion down the line. 

• Reconciliation of invoice payments

Regularly reconciling your invoices and payments is vital for accurate financial management. This involves cross-checking your invoices and expenses to ensure all transactions have been accurately recorded. 

And, in my personal opinion, this is one of the most important steps in maintaining a healthy business record.

• Resolve payment issues

Lastly, if you have any unpaid invoices or late payments, it’s important to address them quickly. Keep a clear record of payment disputes and gather all relevant information so you can easily access it when needed.

What are the benefits of invoice payment in WooCommerce?

With online shopping ruling the marketing field, customers increasingly prefer making payments online, including through digital invoices. 

Invoice payments in WooCommerce offer numerous benefits, from automating the payment process to improving cash flow for businesses.

However, as a Woocommerce business owner, you’ll also need to offer invoice payment options for a wide range of reasons.

So, let’s check out why you need to mention the payment method in your invoices.

• Keep records

The primary purpose of an invoice is to keep records of the transactions that happened or are going to happen. Therefore, it’s obvious you need to mention the payment method in the invoice.

• Legal protection

In the event of a dispute, a WooCommerce invoice can serve as a legally binding contracting instrument and as proof of the goods or services provided.

Therefore, you must include the WooCommerce payment method in the invoice in order to strengthen your document’s authenticity.

• Payment tracking

A WooCommerce invoice is a crucial piece of paperwork for any business. Keeping detailed records of monetary transactions is helpful for both the buyer and the seller.

Including WooCommerce payment methods inside the invoice will help you track the transactions more efficiently. This will also help you determine your financial standing and secure growth. 

• Tax filing

If you run a WooCommerce store, you know how crucial it is to keep track of all of your invoices. This helps to properly report your revenue and pay any applicable taxes.

When you mention the payment method in the invoice, it will help you quickly sort out your transaction histories. As a result, you will be able to submit your data more efficiently.

• Business analytics

By analyzing invoice information, you can find out a lot about your customer’s buying habits and use that information to predict future trends, top buyers, and busy shopping periods.

Including payment methods in invoice will help you find out what payment gateways your customers mostly use.

Conclusion

One of the key elements of earning your shopper’s trust and loyalty is to provide them with a flawless customer journey in your WooCommerce store. 

It’s not just about how fast or smooth your website is for browsing; it also includes how easy the checkout process is and, most importantly, how efficient your order payment process is.

In addition to that, having multiple easy-to-use Woocommerce invoice payment methods available is crucial to the success of any online store. 

Therefore, having an invoice payment option in Woocommerce will come in handy for you, especially in the case of large orders.