Payment Methods on Invoices: How to Offer Your Customers the Right Options

The right payment method can make the difference: between a quick payment and weeks of waiting. In this guide, you'll learn which payment methods you should offer and how to communicate them optimally on your invoices.

Why Payment Methods Matter

Studies show:

• 67% of customers abandon a purchase if their preferred payment method is missing
• Invoices with multiple payment options are paid 3 days faster on average
• Automated payments (direct debit, standing order) reduce payment defaults by up to 50%

Overview of the Most Important Payment Methods

1. Bank Transfer (SEPA)

The classic method - especially popular in B2B.

How to phrase it on the invoice:

Bank Details:
Account Holder: Max Mustermann
IBAN: DE89 3704 0044 0532 0130 00
BIC: COBADEFFXXX
Reference: Invoice 2025-0042

Tip: Always specify the payment reference. This makes allocation much easier.

2. PayPal

Popular with private customers and smaller amounts.

How to phrase it:

PayPal: payment@yourcompany.com
Or directly via: paypal.me/yourcompany/250EUR

Advantages:

• Instant payment
• Buyer protection increases trust
• Easy integration in invoices

Disadvantages:

• Relatively high fees
• Not all business customers use PayPal
• Money can be charged back (buyer protection)

3. Credit Card

International standard, less common in German B2B.

How to offer it:

Via a payment link in the invoice:

• Stripe payment links
• Clever Invoice payment links

4. SEPA Direct Debit

Ideal for recurring invoices and subscription models.

Requirement: SEPA direct debit mandate from customer

Phrasing on the invoice:

The invoice amount will be collected on [date] from your account
IBAN: DE89    5678
(Mandate reference: DDM-2025-0042)

5. Instant Transfer / Klarna

Online payment directly from bank account.

6. Cash Payment

Only relevant for in-person handover.

Important: For cash payments over €10,000, special documentation requirements apply (anti-money laundering laws).

Which Payment Methods for Which Customers?

B2B (Business Customers)

Recommendation: 2-3 options

1. SEPA transfer (standard)
2. SEPA direct debit (for regular customers)
3. Credit card (for international customers)

B2C (Private Customers)

Recommendation: 3-4 options

1. PayPal (fast and familiar)
2. Credit card (Visa, Mastercard)
3. Bank transfer (for older target groups)
4. Klarna/Instant transfer (optional)

International Customers

Recommendation:

• PayPal (globally accepted)
• Credit card (international standard)
• TransferWise/Wise (for affordable international transfers)

Payment Links: The Modern Solution

With payment links, you turn every invoice into an instantly payable invoice:

Pay now: https://pay.cleverinvoice.com/inv/2025-0042

Advantages:

• Customer clicks and pays immediately
• Automatic payment allocation
• Supports multiple payment methods

How It Works with Clever Invoice

1. Create invoice
2. Payment link is generated automatically
3. Customer receives invoice via email with payment link
4. One click → Payment → Automatic booking

Payment Method Cost Comparison

Conclusion: For larger B2B amounts, classic bank transfer is the most cost-effective.

Displaying Payment Methods on Invoices Correctly

Best Practices

1. Clear and organized - Don't hide payment information
2. Highlight preferred method - e.g., "Preferred: Bank transfer"
3. All necessary details - IBAN, BIC, PayPal address, payment link
4. Specify reference - Always include invoice number

Example: Optimal Payment Information

╔═══════════════════════════════════════════════════════╗
║                    PAYMENT INFORMATION                 ║
╠═══════════════════════════════════════════════════════╣
║  Amount: €595.00 | Due by: January 15, 2025          ║
╠═══════════════════════════════════════════════════════╣
║  BANK TRANSFER (preferred)                            ║
║  IBAN: DE89 3704 0044 0532 0130 00                    ║
║  BIC: COBADEFFXXX                                      ║
║  Reference: INV-2025-0042                              ║
╠═══════════════════════════════════════════════════════╣
║  PAYPAL                                                ║
║  payment@yourcompany.com                               ║
╠═══════════════════════════════════════════════════════╣
║  PAY NOW                                               ║
║  → pay.cleverinvoice.com/inv/2025-0042                ║
╚═══════════════════════════════════════════════════════╝

Combining Payment Terms and Payment Methods

Early Payment Discount as Incentive

Combine payment methods with early payment discount:

Payable within 30 days
For payment within 7 days: 2% discount (= €11.90 savings)

More on this: How to Calculate and Offer Early Payment Discounts

Checklist: Optimizing Payment Methods

Conclusion

The right mix of payment methods accelerates your payment receipts:

1. Bank transfer remains the B2B standard
2. PayPal and credit card for fast payments
3. Direct debit for regular customers and subscriptions
4. Payment links modernize every invoice

With Clever Invoice, you automatically offer your customers the most important payment methods - including payment links that enable instant payments.