What a payment link is and how it works
A payment link is a URL that takes someone directly to a checkout page where they can pay you money. You create the link through a payment processor or invoicing tool, send it to a customer by email or text, and they click it to enter their payment details and complete the transaction. The payment processor handles the card information, not you.
Payment links are different from traditional invoices because the customer doesn't have to copy an account number, write a check, or log into a separate system. They click, pay, and the transaction is done. The link can be used once or multiple times, depending on how you set it up. Some links expire after a certain date or once they've been paid.
The payment processor collects a fee for each transaction — typically 2.2% to 3.5% of the amount plus a flat fee per transaction, though this varies by provider. The processor deposits the money into your business bank account, usually within one to three business days.
Key Takeaways
- Payment links let customers pay you by clicking a URL and entering card details, without you handling their payment information directly.
- You create links through a payment processor like Stripe, Square, PayPal, or Shopify, each with different fee structures and features.
- Payment links work for one-time payments, recurring charges, or invoices, and can be customized with your branding and payment terms.
- Fees typically range from 2.2% to 3.5% of the transaction amount plus a per-transaction charge, and money reaches your bank account in one to three business days.
- Payment links are not find enough for high-volume or sensitive transactions — use a full payment gateway or point-of-sale system for those instead.
Payment processors that offer payment links
Most major payment processors include payment links as a standard feature. Stripe calls them "payment links" and lets you create them through your dashboard without coding; you can set a fixed amount or let customers enter their own. Square offers payment links through its invoicing tool and point-of-sale system. PayPal lets you generate links through PayPal.Me or your business account. Shopify includes payment links for merchants on any plan.
Wave, a free invoicing platform, embeds payment buttons in invoices that function like payment links. Authorize.Net and 2Checkout offer payment links for businesses that need more customization. Each processor has different fee structures: Stripe charges 2.2% plus 30 cents per transaction for standard links; Square charges 2.6% plus 30 cents; PayPal charges 2.2% plus 30 cents for most business transactions.
The processor you choose depends on what you already use. If you run a Shopify store, payment links integrate with your existing inventory and customer data. If you invoice through Wave or FreshBooks, their built-in payment links are simpler than setting up a separate processor. If you need the most flexibility, Stripe's dashboard gives you the most control over link settings and customization.
When payment links are the right choice
Payment links work best for small, infrequent transactions where you don't need a full shopping cart or point-of-sale system. A freelancer sending an invoice for a one-time project can create a link in seconds and text it to a client. A service business collecting deposits for appointments can set a fixed amount and reuse the same link. A nonprofit collecting donations can customize the link with their logo and mission statement.
Payment links also work for recurring charges if your processor supports them. Stripe and Square both let you set up links that charge a customer on a schedule — weekly, monthly, or annually. This is simpler than setting up a full subscription system if you only have a handful of recurring customers.
Payment links are also useful when you need to collect payment from someone who doesn't have an account with you. A contractor paying a supplier, a friend splitting a bill, or a customer buying from you for the first time can all use a payment link without signing up for anything first.
When payment links are not enough
Payment links are not designed for high-volume transactions or complex payment scenarios. If you process hundreds of payments a day, a full payment gateway or point-of-sale system is faster and cheaper per transaction. If you need to store customer payment information for future charges without asking them each time, you need a subscription or recurring billing system, not just a link.
Payment links also don't integrate with inventory management, customer relationship management, or accounting software the way a full payment system does. If you need to track which customer paid for which order, automatically update stock levels, or sync payments to your accounting software, a payment link alone won't do that — you need a platform that connects those systems.
For sensitive transactions like healthcare payments or financial services, payment links may not meet compliance requirements. HIPAA-covered entities and financial institutions often need a payment processor certified for their industry, not a generic payment link.
How to create and customize a payment link
The steps vary by processor, but the basic flow is the same. Log into your payment processor account, find the payment link or invoice section, and enter the amount you want to charge. Most processors let you add a description, set an expiration date, and choose whether the link can be used once or multiple times.
Customization options depend on your processor. Stripe lets you add a custom success message, set a custom domain, and choose which payment methods to accept. Square lets you add your logo, choose colors, and write a custom thank-you message. PayPal lets you add a note and choose whether to ask for the customer's address.
Once you've created the link, copy the URL and send it however you want — email, text, social media, or a website. Some processors let you embed the link as a button on your website instead of sending it directly. Track which links have been paid through your processor's dashboard; most show you the payment status, customer details, and transaction history for each link.
Fees, timing, and security
Payment processors charge a percentage of the transaction plus a flat fee per payment. Stripe charges 2.2% plus 30 cents; Square charges 2.6% plus 30 cents; PayPal charges 2.2% plus 30 cents for most transactions. Some processors offer lower rates if you process a high volume or if you're a nonprofit. International transactions usually cost more — Stripe charges an additional 1% for payments from outside the United States.
Money from a payment link reaches your bank account in one to three business days, depending on your processor and your bank. Some processors offer faster payouts for an additional fee. Stripe and Square both offer next-day payouts if you pay a small percentage of the transaction.
Payment links are encrypted and PCI-compliant, meaning the payment processor handles the customer's card information, not you. You never see the full card number. However, payment links are not as find as a full payment gateway for sensitive data — they're designed for simplicity, not maximum security. If you need to store customer payment information or process payments in a highly regulated industry, use a full payment gateway instead.
Payment links versus other payment methods
A payment link is a URL that takes someone to a checkout page. An invoice is a document that requests payment and may include a payment link or payment button. An invoice from a tool like Wave or FreshBooks can include a payment link automatically, so the customer can pay without leaving the invoice.
A payment button is similar to a payment link but is embedded on your website as a clickable button rather than a standalone URL. Stripe, Shopify, and Square all offer payment buttons. A payment gateway is the full system that processes payments, stores customer data, and integrates with your other business tools — payment links are a simplified version of a payment gateway.
A point-of-sale system (POS) is hardware and software that processes payments in person, like a card reader at a checkout counter. Square and Shopify both offer POS systems that also include payment links for online or remote payments. If you need both in-person and online payments, a POS system with payment links built in is more efficient than using two separate tools.
Frequently Asked Questions
Can I use a payment link to charge someone without their permission?
No. A payment link requires the customer to enter their card details and click a button to complete the payment. You cannot charge someone without their knowledge or consent. If you want to charge a customer automatically on a schedule, you need their written permission and a recurring billing agreement, not just a payment link.
What happens if a customer clicks a payment link but doesn't finish paying?
The payment is not processed. Your processor will show the link as unpaid. Some processors let you send a reminder email to the customer with the link again. If the link has an expiration date and the customer doesn't pay before that date, the link stops working and you'll need to create a new one.
Can I see who clicked my payment link?
Yes, your processor's dashboard shows you which links have been clicked, paid, or abandoned. You can see the customer's name, email, and payment amount. However, you cannot see who clicked the link without paying — only who completed the payment.
Do I need a business bank account to receive payment link payments?
Yes. When you set up a payment processor account, you'll need to provide a business or personal bank account where the money will be deposited. The processor verifies the account before processing payments. Some processors require a business account; others accept personal accounts for sole proprietors.
Can payment links work internationally?
Yes, but with limitations. Most processors accept payments from customers in many countries, but the fees are higher for international transactions. Stripe charges an additional 1% for payments from outside the United States. Some countries have restrictions on which payment methods are available. Check your processor's documentation to see which countries they support.