A Complete Guide to WooCommerce Invoice Payment Method
Be it a single or multiple products store, a subscription-based membership website, or even a learning management site, you can build any type of website with WooCommerce where you need to accept payment from clients.
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. If anything is missing, there’s the largest extensions and plugin collection available for you to back it up.
The payment gateway integration is one thing WooCommerce makes tremendously easy for store owners. You can accept payments immediately, 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. What better way to record it than to include it in your invoices?
In this article, we will discuss why you need to mention the WooCommerce payment methods in your invoices and how to mention the WooCommerce invoice payment method in your invoices.
We will also discover how you can create and display a WooCommerce invoice payment method on the checkout page and send invoices to accept payment rather than create invoices after the payments.
So, stay tuned.
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 the 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.
How to accept payments in WooCommerce?
WooCommerce supports the most significant amount of payment gateways which no competitor does. After you sign up with a payment gateway provider, you can install its dedicated WooCommerce extension and accept payments immediately.
Simple as that. But what payment gateway should you choose?
Let’s discuss a little about the best WooCommerce payment methods.
Stripe is the gold standard for online credit card transactions. WooCommerce has built-in support for Stripe.
Stripe supports credit, debit, and prepaid cards. Additionally, customers have the option of using Apple Pay, Google Pay, or Alipay to make purchases from you.
Stripe works in over 45 different countries and with 135 different currencies. Stripe’s transaction fee is 2.9% + 30 cents, but there are no monthly or annual fees associated with using the service.
Stripe allows for recurring payments to be processed and is compatible with any WordPress membership plugin or subscription service.
Additionally, it provides a more pleasant experience when one is checking out. Your clients remain on your website throughout the checkout process, which functions faultlessly on desktop computers as well as mobile devices.
When it comes to online shops, PayPal is one of the most widely used payment options. WooCommerce has in-built support for accepting payments through PayPal.
PayPal, an early innovator in the online payment space, now provides a range of services for consumers, businesses, and merchants.
PayPal is available in a large number of countries. However, there are different restrictions for different countries. Verify its availability for use in your country and among your target audience.
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.
Pricing for American cards is a flat 2.9% plus $0.30 per transaction. Cards from outside the US incur an extra 1% fee. Because of this, the total cost is higher than for comparable alternatives.
It’s worth noting that this solution is essentially a rebranded and renamed version of Stripe, but it’s much less complicated to implement.
How to setup WooCommerce payment methods
After you sign up with your favorite WooCommerce payment provider, the rest of the process is pretty straightforward. You can find an available extension for that provider either in the WooCommerce marketplace or in the WordPress repository.
If you go to WooCommerce>>Settings>>Payments, you will find three pre-installed WooCommerce payment methods.
However, you still need to configure them in order to work.
Let’s say you want to activate a new WooCommerce payment gateway, for example, the WooCommerce Payments by Automatic. Let’s check how you can do that.
Go to Plugins>>Add New, and type in the plugin name as you can in the image below. Install and activate.
Right after installing, the plugin will prompt you to complete the setup. You then will have to give your personal and business details along with your bank or debit card information.
The gateway partner of this plugin, Stripe, will then verify your details and let you accept payments in your WooCommerce store.
We will not go deep on this because we want to focus on how you can achieve the WooCommerce invoice payment method. First, let’s quickly review what an invoice is.
What is an invoice?
An invoice is a document that states what products or services were sold from whom to whom and at what price, etc. Generally, invoices are created before or after the payment has been made.
It acts as proof of transaction between the seller and buyer and also serves as a legal document when required.
There are some essential elements every invoice should have, such as company information, client’s address, payment date, payment method, order number, invoice number, purchased product table, total price, etc.
But do you really need to create an invoice when your customers have already paid, and do you really need to mention the payment method inside your WooCommerce invoice?
Let’s find out.
Why do you need to mention the payment method in your invoices?
The primary purpose of an invoice is to keep records of the payment transaction that happened or going to happen. Therefore, it’s obvious you need to mention the payment method in invoice.
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. Invoices protect businesses from false claims of breach of contract by providing legal proof of transactions between you and your clients.
Therefore, you must include the WooCommerce payment method in the invoice in order to strengthen your document’s authenticity.
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.
If you run a WooCommerce store, you know how crucial it is to keep track of all of your sales invoices to properly report your revenue and pay any applicable taxes.
When you mention the payment method in invoice, it will help you quickly sort out your transaction histories. As a result, you will be able to submit your data more efficiently.
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 sellers, and busy shopping periods.
Including payment method in invoice will help you find out what payment gateways your customers mostly use.
Your marketing efforts will benefit from this information when you combine all the different data and analyze them.
How to create an invoice in WooCommerce?
Before we can jump into our main topic, the WooCommerce invoice payment method, we first need to learn how to create invoices in WooCommerce.
Despite having a handful of features, unfortunately, WooCommerce doesn’t come with the tools to create an invoice. However, as we mentioned at the beginning, there’s no shortage of extensions/plugins that can provide solutions to all your requirements.
There are a number of third-party plugins available to create invoices. But not all are flexible enough to meet all your needs. One complete solution you may find is the Challan pdf invoicing plugin, and we will talk about this one in this article.
Challan pdf invoicing plugin
With Challan, you can have invoices created and attached to order confirmation emails automatically. More than that, it generates downloadable shipping labels, packing slips, and credit notes at the click of a button.
There are a number of options you can enable, including displaying the WooCommerce invoice payment method by just toggling a bar.
You can make a lot of adjustments to your invoices with the help of Challan’s flexible settings. Using Challan, you can personalize the look and feel of your WooCommerce invoices by including a number of custom fields.
It also allows you to choose from a variety of pre-designed templates and add your own custom background image. You can add your brand elements as well, such as logo, authorized signature, custom footer, paid stamps, etc.
In addition, you can fully customize the invoice template using CSS. The plugin also allows you to download your WooCommerce invoices and packing slips in bulk.
- Automatically generates invoices as soon as the customer completes the checkout.
- Allows you to download packing slips, invoices, credit notes, and shipping labels manually.
- Enables you to display payment method in invoice.
- Allows you to fully customize your invoice template.
- Supports adding CSS to modify your invoices.
- Allows you to add brand elements such as business logo, paid stamp, signature, and custom footer notes.
- Offers a number of pre-made templates and also allows you to add a background image.
The free version is available in the WordPress repository.
Challan pro has different plans for both annual and lifetime licenses.
Annual cost –
Single Site – $29.00
Five Sites – $59.00
Ten Sites -$129.00
Lifetime cost –
Single Site – $119.00
Five Site – $229.00
Ten Site – $457.00
How to create invoices using Challan
Okay, first things first: let’s put in that free plugin.
Navigate to Plugins>>Add New in your WordPress dashboard. To locate and activate the necessary plugin, simply search for it by typing its name.
As soon as you activate Challan, it will automatically start creating invoices for the next orders and attach them to the order confirmation email. You can also manually download the documents.
Go to any order page, and you will find a dedicated Challan panel on the right side of the page. From there, you can click and download the documents.
How to display the WooCommerce invoice payment method?
Both Challan free and the pro version has options for displaying payment method in invoice. Let’s start with the free version.
After you install Challan, you will notice a new dedicated Challan menu in your WordPress back panel. Hover over it and click on settings.
It will take you to the general settings tab, where you can change different settings of your custom invoice temple.
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 made 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 invoice, and that also at the top section.
Now we will quickly review how to enable the display payment method in invoice option in Challan pro. Is there any difference in the pro version?
Well, Challan pro adds a plethora of options for you to customize your WooCommerce invoice. Let’s check what the settings page looks like now.
As you can see, there are now dedicated tabs for invoices, packing slips, and shipping labels. However, you won’t find the WooCommerce invoice payment method in the general settings now.
For that, you will need to go to the Invoice tab and scroll down to the Date & Currency section. There you will find the option, and you need to toggle it to enable.
Here’s how it may look in the invoice.
How to accept payments using an invoice?
As of now, we have been talking about how to create invoices and include payment method in invoice after your customers have made the payment.
What about creating an invoice before the client makes the payment? What if the client wants you to submit the invoice first, then they will make the payment based on your invoice?
Is that possible in WooCommerce, or will you ever need that for WooCommerce stores?
You may need it depending on the business you do in your WooCommerce store. If you sell business-to-business (B2B), then companies may require you to submit the invoice first.
Or, if you provide service in your WooCommerce store, then you may need to submit an invoice for your clients to check and approve.
Also, if you wholesale your products besides retail sales, then you will need to create an invoice payment system where you will create invoices first, and customers will pay according to your invoice.
Wholesale customers generally order a large number of products at a time. They don’t like to visit your shop and add items to the cart one by one, rather prefer you create an invoice with all products and submit it to them.
Now coming to the next question, is it possible in WooCommerce?
Well, as you already know, there are no built-in tools in WooCommerce to handle invoices. You will need to look for third-party plugins for WooCommerce invoice payment.
However, we can show you a trick through which you can create such invoices without any additional payment method invoice plugins.
How to accept WooCommerce invoice payment?
For example, you want to accept payments in your bank account from a client after submitting an invoice. Generally, companies accept payments in bank accounts when they use the invoice payment method.
So you need to do two things:
- Create an invoice payment gateway
- Create an invoice for getting paid
How to create a WooCommerce invoice payment method?
We will create a WooCommerce invoice payment method that customers will see on the checkout page.
From your WordPress admin panel, go to WooCommerce>>Settings and then click on the Payments tab.
Click on the Manage button beside the Direct bank transfer option. Now you will need to make some changes here.
First, you will change the title to Invoice Payment. Then you need to also change the description so that your customers understand what this option means.
Also, make sure you input your bank details in the Account details section. Save the changes to finish the process.
Let’s jump to the shop page and add some products to the cart. After that, go to the checkout page to check if the WooCommerce invoice payment method is working or not.
As you can see, there’s an invoice payment method on the checkout page, along with other options. You can choose to edit any other built-in payment methods such as the check or cash on delivery as well.
Now it’s time to create the invoice.
Creating an invoice for getting paid
As we know by now, WooCommerce doesn’t have the tools to create an invoice. We have used Challan for creating invoices.
Challan auto-generates invoices and attaches them to the order confirmation email. However, we are now trying to submit an invoice to collect the payment.
We have already created the WooCommerce invoice payment method; now, we need to create the invoice for it. For this, we will need the Challan pro plugin.
As we renamed the bank transfer option in the payment methods, we need to display bank account details in the invoice so that the customer can pay in that account after checking the 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.
You will find a dedicated option for displaying bank account details in the invoice.
Here’s how the invoice may look.
As you can see, the WooCommerce invoice payment method says “Invoice payment”, and there’s a separate table showing the bank details where clients need to pay.
What about manual invoice creation that you need to submit to clients to get paid?
You can do that by creating a manual order. Let’s say, for example, a client wants you to submit an invoice for a large order.
Go to WooCommerce>>Orders and click on Add order to add a new order.
First, you need to enter your customer’s or paying companies’ details. Make sure you select the invoice payment method.
Next, you need to add items for the order and invoice.
Then click on create button to create the order. Finally, click on the invoice button from the Challan panel to download your WooCommerce invoice for payment.
Here’s how it looks.
You can also send payment invoice email from the same page from Order action settings.
Frequently Asked Questions (FAQs)
Unfortunately, the core WooCommerce plugin doesn’t have the tools to create invoices. However, you can use third-party plugins such as Challan to create and send invoices to your customers. Additionally, Challan lets you auto-generate invoices and automatically attach them to the order confirmation emails.
When you accept invoice payments in WooCommerce (which means you want to submit an invoice to get paid), you need to create a separate payment method at checkout for invoice payments. This is called a WooCommerce invoice gateway.
WooCommerce doesn’t offer invoice payment options. However, there are third-party plugins available to enable invoice payment option where the invoices will have a payment link. Nevertheless, check this article to find a free way to do it without adding any new invoice payment method plugin.
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 is your order fulfillment process.
Invoice is an essential element of your order fulfillment process. And displaying the payment method inside aids in creating a professional invoice that can also serve as legal proof of evidence of the transactions.
In addition to that, having multiple easy-to-use payment methods available to customers is crucial to the success of any online store. Therefore, having a WooCommerce invoice payment method will come in handy for you, especially in the case of large orders.