Can You Pay an Invoice with a Credit Card?
Many people wonder whether they can pay invoices with a credit card. Here are the answers to the most common questions.
Can You Pay an Invoice with a Credit Card?
Short answer: It depends on the situation.
- Directly from online banking: No, usually not
- Via payment services: Yes, often possible
- To businesses that accept cards: Yes
In most countries, the standard way to pay an invoice is through online banking using bank account details and a payment reference number. However, sometimes you may prefer to pay by credit card, for example to earn reward points or because funds are not available in your account right now.
Why Don't All Businesses Accept Card Payments?
1. Processing Fees
Businesses must pay 1-3% in card processing fees to the payment processor. On large invoices, this becomes a significant cost. A USD 5,000 invoice could cost the business up to USD 150 in fees.
2. Established Systems
Bank transfers with payment references are standard in many countries. They are free for the recipient and work with automatic reconciliation systems.
3. Security
Bank transfers with payment references are secure and traceable for both parties. These systems have been used for decades and are well proven.
When CAN You Pay with a Credit Card?
Online Shops
Most online shops offer card payment at checkout. You can pay directly with your credit card and skip the invoice entirely.
Large Companies via Customer Portals
Telecom providers, utility companies, and similar businesses often offer card payment through their online customer portals. Log in and check if you can add a credit card as a payment method.
Mobile Payment Services
Services like Apple Pay, Google Pay, or local mobile payment apps sometimes allow you to link a credit card for bill payments.
Ask the Supplier
Some businesses will accept card payment if you ask. They see it as a customer service to make payment easier.
Alternatives to Card Payment
1. Instalment Plans
Many businesses offer instalment plans directly on the invoice. You pay the invoice in several parts, usually with a small interest charge. This can be a better alternative than using a credit card.
2. Cash Advance from Credit Card
You could withdraw cash from your credit card and pay the invoice from your bank account. This is not recommended because it typically incurs high interest from day one, plus a withdrawal fee.
3. Personal Loan
For large invoices, a personal loan may be cheaper than credit card interest rates. Always compare the terms carefully before deciding.
4. Extended Due Date
Contact the supplier and ask for an extended due date. Many will agree, especially if you are a returning customer and explain the situation.
How to Pay an Invoice
Standard Method via Online Banking (recommended):
- Log in to your online banking
- Select "Pay bills" or "Transfer"
- Enter the recipient's bank account details
- Enter the payment reference number
- Confirm the amount and send
With Mobile Banking:
- Open your banking app
- Scan the invoice barcode or QR code (if available)
- Or enter the details manually
- Confirm the payment
With Direct Debit:
Set up automatic payment for recurring bills such as utilities, phone, and insurance. The amount is debited automatically on the due date.
For Businesses: Why Offer Card Payment?
If you send invoices, you might consider offering card payment to your customers:
Advantages:
- Customers pay faster
- Fewer reminders and collection efforts
- Better customer service and satisfaction
Disadvantages:
- Card processing fees (1-3%)
- Need to set up a payment solution
Card Payment Solutions:
- Stripe - Popular international solution for online card payments
- PayPal - Internationally recognised and widely used
- Square - Card payments for businesses of all sizes
- Klarna - Invoice and instalment payment options
Tips for Invoice Payment
1. Pay on Time
Avoid late fees and penalty interest by paying before the due date.
2. Always Use the Payment Reference
The payment reference ensures that your payment is correctly registered with the recipient. Without it, your payment may not be properly matched.
3. Check the Amount
Double-check that the invoice amount is correct before paying. Compare with the contract or quote.
4. Save the Receipt
Online banking stores your payments, but it can be useful to take a screenshot as extra security.
5. Set a Reminder
Use your calendar or banking app reminders so you do not forget the due date.
Frequently Asked Questions
Can I pay via mobile payment apps?
Some businesses offer payment via apps like PayPal, Venmo, or local mobile payment services. Check the invoice for supported payment methods.
Do I earn reward points if I pay an invoice by card?
Only if the business accepts card payment and you actually pay by card. For standard bank transfers, you earn no reward points.
Is it safe to pay an invoice?
Yes, bank transfers via online banking are very safe. Always verify that the account number and amount match the invoice.
What if I pay to the wrong account?
Contact your bank immediately. They can often help trace or reverse the payment. The faster you react, the better the chances of recovery.
Summary
| Method | Possible? | Comment |
|--------|-----------|---------|
| Bank transfer | Yes | Standard and free |
| Credit card directly | Rarely | Few businesses offer this |
| Via mobile payment | Sometimes | Check the invoice |
| Via online shop | Yes | At purchase, not for invoices |
| Direct debit | Yes | Good for recurring bills |
The simplest way to pay an invoice is via online banking with the correct payment reference. It is fast, secure, and completely free.