PayPal Invoicing lets businesses send free branded invoices that customers pay by PayPal, Venmo, card or bank; fees apply only when an invoice is paid.
PayPal Invoicing is the free invoicing tool in a PayPal Business account, for freelancers and small businesses that want clients to pay by PayPal, Venmo, card or bank. Sending invoices costs nothing; PayPal charges a fee on each payment, from 1% for bank transfers to 3.49% + $0.49 for PayPal payments.
The bottom line
A sensible free invoicing option for small, simple billing, as long as you budget for the payment fees.
7
Our score
7 / 10
Conversion Gems editorial verdict
Free to send; fees per payment
Features6/10
6 - branded invoices, estimates, recurring billing, reminders and tracking; no accounting features.
Value7/10
7 - free to send; fees of 2.99% to 3.49% + $0.49 per payment, with ACH capped at $10.
Ease of use9/10
9 - create and send from Pay & Get Paid in minutes, on web or app.
Ecosystem7/10
7 - accepts PayPal, Venmo, Apple Pay, cards, Pay Later and ACH; we did not verify invoicing API or accounting integrations on the pages checked.
Support6/10
6 - PayPal help center articles and guides; we did not verify live support for invoicing.
What it really is
The free invoicing tool inside a PayPal Business account; PayPal earns from payment fees.
Our take
For a freelancer already on PayPal, this is the fastest way to bill someone: fill in a form, send a link, get paid by card, Venmo or bank. Nothing to pay up front. The real cost is the payment fee, which on a $1,000 invoice is roughly $35 at the PayPal rate. Bank payments are capped at $10, so for bigger invoices it pays to ask clients to use ACH. You will still need separate software for bookkeeping.
Why we rate it
Free to use with payment options most customers already have.
The catch
Percentage fees on every payment add up on large or frequent invoices.
Best for
Freelancers and contractors
Small sellers already using PayPal
Occasional or recurring client billing
Not good for
Businesses needing full accounting
High-value invoices paid by card
Teams wanting quotes-to-cash workflows
Friction report
Time to value
Minutes: open a free business account and send the first invoice.
Scale breakpoint
Fees grow with volume; at scale a dedicated billing tool may cost less.
Walled garden
Medium: payments land in your PayPal balance before transfer to a bank.
PayPal Invoicing fees (US)
How the customer pays
Fee
Creating and sending an invoice
Free
PayPal, Venmo or PayPal Guest Checkout
3.49% + $0.49
Credit or debit card
2.99% + $0.49
Pay by Bank (ACH)
1%, capped at $10.00
Pay Later
4.99% + $0.49
International payment
Add 1.50%
From PayPal's business fees and invoicing pages, checked 4 October 2026. Domestic US rates; the fees page was last updated 1 October 2026.
Frequently Asked Questions
Creating and sending invoices is free, with no setup or monthly fee. PayPal charges a fee when the customer pays: 3.49% + $0.49 for PayPal or Venmo, 2.99% + $0.49 for cards and 1% capped at $10 for bank (ACH) payments in the US (checked 4 October 2026).
Log in to a PayPal Business account on the web or in the app, open Pay & Get Paid, choose Create an Invoice, add the customer and items, then preview and send it by email or share a link or QR code.
You cannot remove the fee, but you can lower it. US invoices paid by bank transfer (ACH) cost 1%, capped at $10 per transaction, versus 3.49% + $0.49 for PayPal or Venmo payments (checked 4 October 2026).
No. PayPal says customers can pay an invoice with a card, Apple Pay, bank transfer or other methods without a PayPal account.
Yes. PayPal's guide says a PayPal Business account is required to send invoices, and opening one is free.
Yes. PayPal adds a 1.50% international surcharge on top of the domestic invoicing rate (checked 4 October 2026).
PayPal Invoicing alternatives
Other invoicing and billing tools in our directory:
Stripe: Payments and invoicing with APIs for online businesses.
FreshBooks: Invoicing with time tracking, expenses and accounting for small businesses.
Wave: Invoicing and bookkeeping for small businesses.
Invoice Ninja: Invoicing and billing app with an open-source option.
