Someone sent you an invoice and you want to pay it correctly, on time, and without any surprises. Good news: it usually takes five minutes. This guide walks you through what to check, how to choose a payment method, how to avoid invoice fraud, and what to keep afterward.
It's written for clients and customers: small business owners, managers who approve vendor bills, and anyone paying a freelancer for the first time.
Key takeaways
Check the invoice first: vendor details, line items, totals, due date and payment instructions.
Verify bank details by phone using a number you already have, especially if they've changed. Invoice fraud is one of the costliest cybercrimes in the US.
Pick the method that suits both sides. Cards are easiest to dispute; ACH is cheap; wires are fast but hard to reverse.
Always include the invoice number with your payment, and pay in the currency on the invoice.
Keep the receipt and the invoice together. You'll need them for your books and for taxes.
Step 1: Check the invoice before you pay
Before you send money, take two minutes to read the invoice properly. You're looking for anything that doesn't match what you agreed.
Vendor details. Is the business name the one you hired? Is the email it came from the one they normally use?
Your details. Is it addressed to you or your company, with the right billing address?
Invoice number and date. Each invoice should have a unique number. You'll need it as a payment reference.
Line items. Do the services, quantities and rates match your agreement, proposal or estimate? Each charge should be listed separately on an itemized invoice. (If you're not sure how an estimate differs from an invoice, here's estimates vs. invoices explained.)
Totals. Check the subtotal, tax, any discount and the total due.
Due date and terms. "Net 15" means payment is due 15 days after the invoice date. "Due on receipt" means now.
Payment instructions. Which methods does the vendor accept? Are bank details or a payment link included?
If something looks off, reply and ask before you pay. A good vendor would much rather fix a typo than deal with a wrong payment. Want to know what a well-made invoice looks like? See how to make an invoice.
Step 2: Watch out for invoice fraud
This is the step most people skip, and it's the one that matters most.
Business email compromise is a scam where criminals send a fake invoice, or a real-looking "update" to a vendor's bank details, hoping you'll send money to their account. The FBI's Internet Crime Complaint Center recorded nearly $3.05 billion in reported business email compromise losses in 2025, and most of it moved by wire transfer.
Red flags to watch for:
"Our bank details have changed." This is the classic. Treat any change in payment details as suspicious until you've confirmed it.
Urgency. "Pay today or the account will be suspended."
A slightly different email address. One extra letter, a different domain ending, or a free email account instead of the company's own.
An invoice you weren't expecting for work you don't recognize.
A request to pay by gift card, crypto or a wire to a personal account. Legitimate vendors don't ask for these out of the blue.
How to protect yourself:
Call the vendor using a phone number you already have on file, not the one in the email, to confirm new or changed bank details.
Pay through a link from the vendor's invoicing tool when they offer one, rather than typing bank details from an email.
Don't rush. A real vendor will understand a one-day delay while you check.
Step 3: Choose how to pay
Most invoices list one or more payment options. Use one of those. Here's how the common methods compare for you as the payer:
Method | Typical speed | Can you reverse it? | Cost to you |
|---|---|---|---|
Credit or debit card (via payment link) | Instant for you; vendor gets funds in a few days | Yes, credit card disputes are protected by law | Usually none; some US vendors add a surcharge on credit cards |
ACH bank transfer (US) | 1–3 business days, often faster | Limited | Usually free |
Wire transfer | Same day domestically; longer internationally | Very hard | Your bank may charge an outgoing wire fee |
PayPal | Instant | Purchase protection on eligible goods-and-services payments | Free from your balance or bank in the US; the seller pays the fee |
Paper check | Days to weeks, including mail | You can stop payment before it clears | Postage and time |
Paying by card
If the invoice has a "Pay now" link, you can usually pay by debit or credit card, Apple Pay or Google Pay. It's fast, you get an instant receipt, and with a credit card you have the strongest protection if something goes wrong.
The card processing fee is normally paid by the vendor, not you. On a US Stripe account, for example, the vendor pays 2.9% + $0.30 per card payment. Some US vendors pass part of that on as a credit card surcharge. Visa caps surcharges at 3% in the US, the vendor must disclose them before you pay, and card network rules don't allow surcharges on debit cards. If a surcharge seems high, paying by ACH is often the cheaper option for you.
Curious what the vendor actually receives? The Stripe fee calculator shows the math.
Paying by bank transfer (ACH or wire)
Bank transfers are common for larger invoices and business-to-business payments. In the US:
ACH is cheap or free and usually settles within one to three business days. It's the standard for paying vendors from a business account.
Wire transfers are faster but often cost a fee at your bank, and once sent they're very hard to recall. Only wire to account details you've verified (see Step 2).
For international invoices, check:
The currency. Pay in the currency on the invoice. If your bank converts the money for you, look at the exchange rate it uses; it may include a markup.
Who pays the fees. International wires can lose money to intermediary banks along the way. If the invoice says the full amount must arrive, choose the option where you cover all fees (often labelled "OUR").
The details. You'll typically need the vendor's account name, IBAN or account number, and SWIFT/BIC code.
Paying with PayPal
If the vendor accepts PayPal, you can pay from your PayPal balance, a linked bank account or a card. In the US, sending money from your balance or bank is free for you; the seller pays a fee of 3.49% + $0.49 on a PayPal payment. Pay as a goods and services payment, not "friends and family," when you're paying for work; that's what keeps you eligible for PayPal's purchase protection.
If you're paying across borders or in another currency, PayPal adds conversion and cross-border fees, which vary by transaction type. The PayPal fee calculator shows what a payment really costs.
Paying by check
Checks still show up in US business payments, but they're slow and can get lost in the mail. If you pay by check, write the invoice number in the memo line and send it early enough to arrive by the due date.
Step 4: Pay on time (and know your terms)
Note the due date as soon as the invoice arrives. A calendar reminder a few days before is enough for most people. If your company has an approval process, start it right away; invoices often sit in someone's inbox longer than it takes to pay them.
A few terms you'll see:
Net 30, Net 15: payment is due 30 or 15 days after the invoice date.
Due on receipt: pay as soon as you can.
2/10 net 30: you can take a 2% discount if you pay within 10 days; otherwise, the full amount is due in 30 days. If you see an early-payment discount and have the cash, it's worth taking.
Late fee: many invoices state a fee or interest for late payment. If it's in the agreement, the vendor can charge it. The late fee calculator shows how a late fee or interest adds up.
Can't pay on time? Contact the vendor before the due date. A short message with a realistic new date or a proposed payment plan protects the relationship far better than silence.
Step 5: Include a reference and keep records
When you pay:
Put the invoice number in the payment reference or memo. Without it, the vendor may not be able to match your payment, and you may get a reminder for an invoice you've already paid.
Pay the exact amount shown, unless you've agreed on a partial payment.
Afterward, save:
The invoice itself (PDF or link)
The payment confirmation or receipt, with the date, amount and transaction ID
The vendor's contact details
Keep the invoice and receipt together in one folder per vendor or per month. You'll need them for bookkeeping, for taxes, and if there's ever a dispute.
If you paid by credit card and something goes wrong (you were charged twice, or the work wasn't delivered as agreed), you can dispute it with your card issuer. Under US federal law, you have 60 days from when the statement with the error was sent to dispute billing errors in writing.
If you're a US business paying a freelancer
A few extra things apply when your business pays independent contractors:
Get a Form W-9 from US contractors before you pay them. It gives you their legal name and taxpayer ID.
1099-NEC threshold: for payments made in 2026, you generally need to file Form 1099-NEC for a contractor you paid $2,000 or more during the year (it was $600 before 2026).
Card and PayPal payments are different. Payments you make by credit card or through a payment network like PayPal are reported by the payment processor on Form 1099-K, so you don't include them on the 1099-NEC.
Paying someone abroad? Foreign contractors usually give you a Form W-8BEN instead of a W-9.
Tax rules change and depend on your situation, so check with your accountant.
Paying an invoice sent with Onigiri
If a freelancer sent you an invoice through Onigiri, you'll get it as an email or a link. Open it to see the full invoice and the payment options. If the vendor has connected card payments, you can pay right there by debit or credit card, Apple Pay or Google Pay, and the vendor sees the invoice as paid straight away. If they've added bank details instead, use those and include the invoice number as the reference.
