If you are a stripe user and looking to use stripe invoicing and to invoice clients and receive payments, you are at the right place. In this blog, we’ll guide you through a step-by-step process on how to use Stripe to send invoices and get paid. Whether you’re new to online invoicing or looking to optimize your current billing process this blog offers practical insights for all. Plus, we’ll share a handy hack and tool to pass Stripe fees to your clients, that lets you keep more of your earnings. Ready to get started with stripe invoicing? Lets begin.
Table of Contents:
- Stripe Invoicing: Steps to send an invoice via Stripe
- What is the Pricing for Stripe Invoicing?
- Tips to Save Stripe Processing Fees
- Conclusion
Stripe Invoicing: Steps to send an invoice via Stripe
1. Sign up for Stripe: If you haven’t already, sign up for a Stripe account at stripe.com. Follow the prompts to create your account.
2. Access Stripe Invoicing: Once logged in, navigate to the left menu bar and click on “More.” From the dropdown menu, select “Invoices” to access the Stripe Invoicing dashboard.
3. Create a New Invoice: Within the Invoices section, click on the “Create Invoice” button to start drafting a new invoice.
4. Enter Customer Details: Fill in the required customer details, including their name and email address. This ensures that the invoice is sent directly to the correct recipient.
5. Add Line Items: Next, add line items to the invoice detailing the products or services provided. Specify the description, quantity, unit price, and any applicable taxes or discounts for each line item.
6. Set Due Date: Specify the due date for the invoice to indicate when payment is expected from the customer. This helps establish clear payment terms and deadlines.
7. Review Invoice: Double-check all the details entered on the invoice to ensure accuracy. Review the customer information, line items, due date, and any additional settings.
8. Send Invoice: Once you’re satisfied with the invoice, click on the “Send Invoice” button to dispatch it to the customer. This triggers an email notification to the customer with a link to view and pay the invoice.
What is the Pricing for Stripe Invoicing?
Stripe invoicing offers two main plans: Invoicing Starter and Invoicing Plus. Previously, the Invoicing Starter plan included an allowance of 25 free invoices, making it an attractive option for small businesses and freelancers looking to minimize costs. However, as of November 2023, Stripe discontinued this offer, and now businesses opting for the Invoicing Starter plan are charged a 0.4% fee per paid invoice.
On the other hand, the Invoicing Plus plan caters to businesses with more complex invoicing requirements. While it offers additional features and customization options, such as advanced reporting and invoice customization capabilities, it comes with a slightly higher fee of 0.5% per paid invoice. This tier is suitable for businesses that require greater flexibility and functionality from Stripe’s invoicing platform.
In addition to the fees associated with Stripe Invoicing plans, businesses must also consider payment processing fees. Stripe applies payment processing fees to all transactions processed through its platform, including payments made in response to invoices generated through Stripe Invoicing. These payment processing fees start at 2.9% plus $0.30 per transaction.
Example:
Let’s consider an example: if you invoice your clients for $1000, you would incur fees based on the plan you’re subscribed to. For Invoicing Starter, which charges 0.4% per paid invoice, the fee would amount to $4 ($1000 * 0.4%). Similarly, if you’re on the Invoicing Plus plan, charging 0.5% per paid invoice, the fee would be $5 ($1000 * 0.5%).
In addition to the invoicing fees, there are payment processing fees to consider. For a $1000 transaction, with Stripe’s payment processing fee starting at 2.9% + $0.30 per transaction, the calculation would be as follows: 2.9% of $1000 is $29, plus $0.30, resulting in a total payment processing fee of $29.30.
So, in total, if you invoice your clients $1000 using Stripe Invoicing, the fees would be $4 or $5 for the invoice itself (depending on your plan), plus $29.30 for the payment processing fee. This totals to $33.30 or $34.30, depending on the plan you’re on.
In the following sections, we’ll look into tips that businesses can use to minimize fees and improve their bottom line.
Tips to Save Stripe Processing Fees:
If you’re finding that Stripe’s fees are eating into your earnings, there’s a smart solution to mitigate these costs and maximize your income. Invoicing tools like CheckYa offer a feature set comparable to Stripe, with an added benefit – the ability to split transaction fees with your clients.
In 2022, freelancers in the US typically made around $70,000. But did you know they might’ve lost over $2,000 because of payment fees alone? That’s a lot of money that could’ve stayed in their pockets.
CheckYa provides a unique invoice feature that allows you to pass payment transaction fees directly to your clients, ensuring you receive the full invoiced amount. With CheckYa’s fee-splitting feature, you can pass on 50% to 100% of the transaction fee to your clients. Simply connect your Stripe account to CheckYa, and when sending an invoice, choose to pass on the transaction fee to your clients or split 50% of the fee with them.
Despite the fee-splitting option, CheckYa offers a simple and streamlined process. You can still enjoy features like automated reminders for overdue invoices and centralized tracking of all invoices – paid, unpaid, and overdue – conveniently within one tab. By utilizing CheckYa’s fee-splitting feature, you can maximize your earnings while maintaining efficient invoicing practices.
By using tools like CheckYa, you can minimize the impact of Stripe processing fees on your bottom line, ensuring you retain more of your hard-earned income.
Here’s how you can send an invoice via CheckYa in 3 simple steps:>
Follow these three simple steps to get started and streamline your invoicing process using CheckYa.
Step 1: Create an Account and Start an Invoice
First, create an account on CheckYa. Once you’re logged in, go to the “Invoices” section and click on “Create Invoice.” This will open a new invoice template where you can begin entering your details.
Step 2: Add Customer Information and Details
Next, fill in the necessary information for your invoice. Add customer details such as their name and email address. Then, include line items detailing the products or services provided, set the due date, and specify any other relevant details. CheckYa also allows you to choose how to handle transaction fees. You can opt to split the transaction fee with your client or pass the full amount on to them.
Step 3: Preview and Send
After entering all the details, preview your invoice to ensure everything is correct. Once you’re done, hit the “Send” button. Your client will receive the invoice via email, and you can track the status of the invoice—whether it’s paid, unpaid, or overdue—directly within CheckYa.
Conclusion:
With the steps outlined above for Stripe invoicing, you can easily get started and send your invoices via Stripe. While Stripe’s invoicing is simple and straightforward, the associated fees can eat into your earnings over time. However, by exploring alternative solutions like CheckYa and implementing smart strategies to optimize your invoicing process, you can minimize costs and maximize your income.
