Can I accept credit card payments on invoices in the US?

Yes—you can accept credit card payments on invoices in the US

If you run a business in the United States, you can absolutely accept credit card payments on invoices. In fact, it’s one of the most common ways freelancers, agencies, contractors, and small businesses get paid—especially when clients expect speed, convenience, and digital payment options. Whether you send invoices for one-time jobs, recurring services, milestone-based projects, or product orders, adding a “Pay by card” option can shorten your payment cycle and reduce the awkward back-and-forth of reminding customers to mail checks or initiate bank transfers.

But while the answer is “yes,” the practical details matter. You’ll want to understand how credit card invoicing works, what you need to set it up, how fees and chargebacks play into your cash flow, and how to present card payments on invoices in a way that feels professional and frictionless for your customer. This guide walks through the entire process in plain English—from the basics of card acceptance to compliance, surcharges, and best practices—so you can confidently accept credit card payments on invoices in the US using your invoicing workflow.

What it means to accept credit card payments on an invoice

Accepting credit cards on invoices simply means your customer can pay what they owe using a card (credit or debit) directly from the invoice experience. Instead of a customer emailing to request your card number (which you should avoid), or calling you to read their details aloud (also not ideal), you give them a secure way to submit payment online.

In most modern invoicing flows, this happens through a payment link or embedded “Pay Now” button that opens a secure checkout page. The customer enters card details, confirms the amount, and receives a receipt. You receive confirmation of payment, your invoice updates to “paid,” and the funds are deposited to your bank account based on your payment processor’s payout schedule.

From the customer’s perspective, paying an invoice with a card should feel just like paying any other online bill. From your perspective, it means you’re using a payment processor (also called a payment gateway or payment service provider) behind the scenes to securely handle the transaction.

Why card payments on invoices are so popular in the US

Card payments are popular in the United States because they align with how many people and businesses already pay for services. For business customers, credit cards can make expense tracking easier, provide short-term cash flow flexibility, and offer purchase protections. For consumers, cards are familiar and convenient, and they often earn rewards.

For you, the business owner, credit card acceptance typically leads to:

Faster payments: Customers can pay immediately when they open the invoice.

Fewer late payments: Convenience reduces procrastination, and reminders help nudge action.

More closed deals: Some customers prefer vendors who can take cards, especially for first-time engagements.

Less admin work: Automated payment confirmation and invoice status updates reduce manual reconciliation.

Even if you also accept bank transfers (ACH), checks, or cash, offering card payment can be the “default” choice that makes the entire process smoother.

How credit card invoice payments work behind the scenes

To accept credit cards, you generally need a payment processor that can handle card transactions and deposit funds to your bank. When your customer pays, the processor verifies the card, obtains authorization, and captures the payment. Then the card network (such as Visa, Mastercard, American Express, or Discover) routes the transaction through the issuing bank (your customer’s bank). If approved, the funds flow through the payment ecosystem and ultimately land in your merchant account or payment balance, then payout to your bank.

In practical terms, the steps usually look like this:

1) You create and send an invoice that includes a secure card payment option.

2) Your customer clicks the payment button or link.

3) They enter card details on a secure checkout page.

4) The transaction is authorized and processed.

5) The invoice is marked paid and the customer gets a receipt.

6) Funds are deposited to your bank after a settlement period.

That’s the “happy path.” In rare cases, payments can be disputed (chargebacks) or refunded, which is why it’s important to keep good records and write clear invoice terms.

What you need to start accepting credit cards on invoices

Most US businesses can start accepting credit cards quickly, but you’ll want to have a few basics ready. Typically, payment processors ask for:

Business details: Legal business name, DBA name (if applicable), address, phone number, and website (if you have one).

Tax identification: EIN for businesses or SSN/ITIN for sole proprietors (requirements vary).

Bank account details: Routing and account number for payouts.

Identity verification: Owner identity information to comply with Know Your Customer (KYC) rules.

Industry information: What you sell, typical transaction size, and expected monthly volume.

Once approved, you’ll connect the processor to your invoicing workflow so invoices can include payment options. Many businesses prefer a setup where customers never have to leave the invoice experience, and everything is tracked automatically.

Is it legal to accept credit card payments on invoices in the US?

Yes. Accepting credit card payments on invoices is legal in the United States. The bigger legal and compliance considerations involve how you handle card data, how you represent pricing and fees, and how you communicate payment terms to customers. You should never store raw card numbers yourself or ask customers to send their card details over email or text. Instead, use secure, compliant payment methods that tokenize card data and keep sensitive information away from your systems.

On the pricing side, you’ll want to understand rules around surcharging, convenience fees, and discounts for non-card payments, which we’ll cover later in this guide.

Understanding PCI compliance in plain language

Whenever credit card payments are involved, you’ll hear the term “PCI compliance.” PCI DSS (Payment Card Industry Data Security Standard) is a set of rules designed to protect cardholder data. The key takeaway for most small businesses is simple: don’t handle or store card data yourself. Let a reputable payment processor and its secure checkout tools do that for you.

If you use a hosted payment page or a secure embedded card form provided by your processor, your PCI obligations are usually lighter. You may still need to complete an annual compliance questionnaire (often a short one), and you’ll want to follow good security practices, but you avoid the heavy lifting of securing card data storage and transmission.

Practical PCI-friendly habits include:

Never collecting card numbers via email, chat, or paper notes.

Never storing card numbers in spreadsheets, CRM notes, or invoicing “memo” fields.

Using secure payment links and processor-hosted checkout forms.

Restricting access to your payment processor dashboard and using strong passwords and two-factor authentication.

Common ways to accept card payments on invoices

There are several ways businesses in the US accept credit cards for invoices. The best option depends on your workflow, average invoice amount, and how much automation you want.

1) “Pay Now” button on the invoice

This is the most user-friendly approach. Your invoice includes a visible “Pay Now” button or link. When the customer clicks it, they’re taken to a secure checkout page for that specific invoice amount. Payment is recorded automatically and the invoice status updates instantly.

2) Payment link included in the invoice email

Some businesses include a payment link in the invoice email body, so customers can pay without even opening a PDF attachment. This can work well when your invoicing system generates a unique invoice URL for each customer.

3) Manual card entry (virtual terminal)

If you take payments over the phone or in person, a “virtual terminal” lets you enter card details into a secure processor portal. This can be useful for certain service businesses, but it also introduces more risk and usually higher processing fees. You should avoid collecting card details unless the customer is comfortable and you have a secure and compliant method to do it.

4) Card-on-file for recurring invoices

For recurring services—like retainers, subscriptions, or monthly maintenance—card-on-file billing can reduce late payments dramatically. The customer authorizes you to charge their card for agreed amounts on an agreed schedule. The payment processor stores a token (not the actual card number) and handles updates when cards expire.

5) Payment request prior to issuing an invoice

In some industries, you may send a payment request as a deposit before issuing a final invoice. Deposits and partial payments can be handled through the same card payment tools, and then the final invoice can reflect the remaining balance.

Fees: what it costs to accept credit card payments on invoices

Credit card processing isn’t free. The processor typically charges a percentage of the transaction plus a fixed amount per payment. The exact rate varies by provider, card type, and how the payment is accepted (online, keyed-in, card-present). Some processors also charge additional fees for chargebacks, refunds, or faster payouts.

When you add card acceptance to your invoices, you should plan for processing fees as a normal cost of doing business—similar to shipping supplies, software subscriptions, or bookkeeping. Many businesses find that the value of faster payment is worth the fee, especially if it reduces time spent chasing invoices.

A practical tip: build your pricing and margins with payment costs in mind. If your average invoice is $1,000 and your processing fee is around 3%, you’re effectively paying about $30 to get paid faster and more reliably. For some businesses, that’s a fair trade; for others, offering multiple payment methods (like ACH) gives customers a cheaper alternative.

Can you pass credit card fees to customers in the US?

This is one of the most searched questions about invoice card payments, and the answer is: sometimes, depending on your state, your card network rules, and how you structure the fee. There are a few common approaches:

Surcharging

A surcharge is an extra fee added when the customer pays with a credit card. Surcharging is allowed in many US states, but there are rules. Card network rules often require you to disclose the surcharge clearly at the point of sale, cap the amount, and apply it consistently. Some states have had restrictions or complex legal histories around surcharging, so you should verify your local rules and your processor’s policy before implementing it.

Convenience fees

A convenience fee is typically charged for offering an alternative payment method or channel—like paying online instead of by mail. Convenience fees also come with rules and may not be allowed for all business types or card acceptance setups. Many processors have strict requirements on how these fees are disclosed and applied.

Discounts for non-card payments

Rather than adding a fee for credit cards, many businesses offer a discount for paying by ACH, check, or cash. This can be simpler to communicate: the invoice lists a standard price, and a discount applies for preferred payment methods. This approach can reduce friction and avoid confusing fee structures.

Best practice for invoice apps

If you choose to add any fee related to card payment, transparency is everything. Customers dislike surprises, and unclear fees can lead to disputes. If your invoicing workflow supports it, show the fee before the customer confirms payment, and make sure your invoice terms explain how fees work.

How long do payouts take after a customer pays by card?

Payout timing depends on the processor, your account history, your industry risk category, and whether the payment was card-present or online. Many processors deposit funds in 1–3 business days, but first-time accounts may have longer holds or rolling reserves until a track record is established.

It’s also normal for payouts to batch, meaning multiple transactions from a day may settle together. For invoice-based businesses, the key is to understand your processor’s payout schedule so you can plan payroll, vendor payments, and taxes without surprises.

Chargebacks: the risk you need to understand

A chargeback happens when a customer disputes a card transaction through their card issuer. Chargebacks can occur for legitimate reasons (fraud, duplicate charge, goods not delivered) or for misunderstandings (customer forgot they authorized the charge, or they didn’t recognize the descriptor on their statement).

When you accept card payments on invoices, chargebacks are part of the landscape. The good news is you can reduce chargeback risk significantly with good invoicing habits:

Use clear invoice descriptions: Include what you delivered, when, and under what agreement.

Document acceptance: Keep emails, signed proposals, or messages approving the work.

Show your business name clearly: Make sure customers recognize the charge.

Communicate refund terms: If you offer refunds, state the policy up front.

Deliver proof: For services, keep logs, time sheets, or deliverables; for products, keep shipping and delivery confirmation.

Even a simple paper trail can make a big difference if a dispute occurs.

Should you accept debit cards too?

Yes, and in most online invoice payment setups, debit cards are accepted automatically alongside credit cards. From the customer’s point of view, it’s still “pay by card.” Debit acceptance can expand your payment options, especially for customers who prefer to pay directly from their bank account but still want the convenience of a card checkout flow.

If you also offer ACH, customers may choose between debit and bank transfer depending on speed and fees.

Credit card payments vs ACH: which should you offer on invoices?

If you’re building an invoicing experience that works for as many customers as possible, it’s smart to offer both card payments and ACH bank transfers. Each method has strengths:

Credit cards: Fast, convenient, familiar, great for impulse “pay immediately,” but higher fees and chargeback risk.

ACH: Lower fees, great for large invoices and B2B payments, but sometimes slower and occasionally requires more customer steps.

Many businesses put both on the invoice and let the customer pick. If your invoice app supports it, you can even encourage the preferred method by adding a small incentive (like a discount for ACH) while still providing card convenience.

How to present credit card payment options on invoices professionally

The way you present payment options can affect how quickly customers pay. Here are practical presentation tips that work well for invoice-based businesses:

Place the payment button prominently: Customers shouldn’t hunt for how to pay.

Make amounts unmistakable: Show the invoice total, due date, and balance due clearly.

Offer partial payments if it fits your business: For large invoices, partial payments can speed up cash flow.

Use plain-language instructions: “Click Pay Now to pay securely by card.”

Confirm payment instantly: Provide a receipt and mark the invoice paid right away.

Send reminders automatically: Friendly reminders reduce late payments without awkward personal nudges.

Customers pay faster when the invoice feels like a polished, trustworthy payment experience.

What to include on your invoice when accepting credit cards

Invoices that accept card payments should include the same essential elements as any professional invoice, plus a few payment-friendly details. A strong invoice typically includes:

Your business name and contact info.

Customer name and billing details.

Invoice number and issue date.

Due date and payment terms (Net 7, Net 15, Net 30, due on receipt, etc.).

Line items describing products or services.

Subtotal, taxes (if applicable), discounts, and total.

Accepted payment methods (including credit/debit cards).

Late payment terms (if you charge late fees) and any early payment incentives.

A short note that reinforces what was delivered and how to reach you with questions.

Clear invoices reduce confusion, build trust, and help protect you if a dispute arises.

Do you need a merchant account to accept card payments?

Traditionally, businesses needed a separate merchant account through a bank to accept cards. Today, most small businesses use payment service providers that bundle merchant services into a single account experience. You sign up, verify your business, connect your bank, and you’re ready to accept cards without negotiating separate merchant account agreements.

For invoice-based businesses, this “all-in-one” approach is usually the simplest path because setup is faster and the payment flow integrates well with invoicing tools.

Taxes and recordkeeping for credit card invoice payments

Accepting card payments doesn’t change your tax obligations, but it does affect recordkeeping. You’ll want clean records showing:

Invoice totals and tax breakdowns (if applicable).

Payment dates and amounts.

Processing fees deducted by the payment processor.

Refunds and adjustments.

At tax time, you’ll generally report revenue based on your accounting method (cash or accrual), and processing fees are typically treated as an expense. It’s helpful if your invoicing system can export reports for bookkeeping, track payment status, and reconcile payments with invoices automatically.

Refunds: how they work when a customer pays an invoice by card

Refunds are a normal part of doing business. If you issue a refund for a card-paid invoice, the processor typically returns the funds to the customer’s card. Timing can vary: customers may see refunds in a few days, and sometimes longer depending on their bank.

When you issue a refund, your invoicing records should reflect the adjustment. Ideally, your system marks the invoice as refunded or partially refunded, generates a credit note if needed, and keeps the audit trail clear for accounting.

Refund best practices include:

Confirming the refund amount and reason in writing.

Referencing the original invoice number.

Updating invoice status and sending a receipt or confirmation.

Recurring invoices and subscriptions: a perfect match for card payments

If you bill customers monthly or on a recurring schedule, credit cards can dramatically reduce late payments. The reason is simple: customers don’t need to remember to pay. With authorization, you can charge the card automatically when each invoice is issued or when the due date arrives.

Recurring billing is popular for:

Marketing retainers.

IT support and maintenance plans.

Cleaning or property management services.

Coaching and consulting packages.

Memberships and ongoing digital services.

If you offer recurring services, consider setting up recurring invoices with automatic reminders and optional autopay. It turns billing into a predictable process rather than a monthly scramble.

Accepting cards for large invoices: what to watch out for

Card payments can be used for large invoices, but there are considerations:

Processing cost: A few percentage points on a large invoice adds up quickly.

Risk controls: Processors may flag unusually large transactions for review.

Chargeback exposure: Larger amounts can mean larger disputes.

Customer preference: Many B2B customers prefer ACH or wire for large payments.

A smart approach is to offer both options: credit card for convenience, ACH for cost savings. For high-value invoices, you can also request a deposit by card and the remainder by ACH, depending on what’s standard in your industry.

International clients paying US invoices by card

If you work with international clients but invoice from the US, credit cards can be especially helpful. Cards reduce the friction of international bank transfers, and clients can pay quickly in a familiar way. Depending on your processor, your clients may be able to pay with cards issued outside the US.

Keep in mind there may be additional cross-border or currency conversion fees depending on the card and processor. If you invoice in USD, many clients will still pay easily, but it’s worth confirming whether your payment setup supports international cards if that’s common for your business.

Security best practices when taking card payments on invoices

Security isn’t just a technical topic—it’s also a trust topic. Customers want to feel safe paying you. A secure invoice payment flow should:

Use HTTPS links for invoice viewing and payment pages.

Route card entry through a secure checkout form provided by a payment processor.

Use two-factor authentication on business accounts.

Restrict access for team members based on roles (for example, who can issue refunds).

Log key actions (sent invoice, payment received, refund issued).

If you follow these habits, you reduce fraud risk and make your business look more professional.

How to handle “card declined” invoice payments

Card declines happen for many reasons: insufficient funds, bank fraud filters, wrong billing ZIP code, expired card, or transaction limits. Your customer may feel embarrassed or confused, so the tone of your messaging matters.

Helpful ways to handle declines include:

Suggest the customer double-check card number, expiration date, CVV, and billing ZIP.

Encourage them to contact their card issuer if the problem persists.

Offer an alternative payment method (ACH or another card).

Resend the invoice with the payment link if needed.

An invoice app that provides clear payment status and supports retries makes this process much easier.

How to reduce late payments when offering credit card invoicing

Adding card payments helps, but you can speed up payment even more by tightening your invoicing process:

Invoice immediately: The longer you wait after delivering work, the less urgency customers feel.

Use clear due dates: “Due on receipt” can be vague; a specific date is clearer.

Automate reminders: A reminder 3 days before due, on due date, and a few days after can be effective.

Offer autopay for repeat clients: Remove the need for manual action.

Make it mobile-friendly: Many customers pay from their phone.

Include a short summary: A one-sentence reminder of the project can prompt faster approval internally for business customers.

These small improvements can make a meaningful difference in how quickly invoices get paid.

Late fees and interest: can you add them when taking card payments?

Many businesses include late fees or interest for overdue invoices. Whether and how you can apply them depends on your contract terms and state law. If you plan to charge late fees, include the terms clearly in your invoice and your service agreement. Clarity reduces disputes and makes expectations fair.

If your invoice app supports it, late fees can be calculated automatically when an invoice becomes overdue. Just be mindful to communicate early—surprise fees tend to damage relationships.

Should you accept American Express on invoices?

Accepting American Express can be beneficial if your customers prefer it for rewards or business spending. Some industries and clients rely heavily on Amex. However, acceptance can come with different fee structures depending on your processor. If your customer base includes corporate clients, accepting Amex can remove a barrier to quick payment.

From a customer-experience perspective, “accept all major cards” is a strong trust signal.

Best practices for invoice terms when accepting credit cards

When card payments are available, your invoice terms should still be clear and complete. Consider including:

Payment terms: When payment is due and what “late” means.

Scope summary: What services/products are covered by the invoice.

Refund policy: Time limits, conditions, and how refunds are issued.

Dispute process: Encourage customers to contact you before disputing a charge.

Partial payment rules: Whether partial payments are accepted and how balances are handled.

This isn’t about being overly legalistic; it’s about reducing misunderstandings.

Common questions about accepting credit cards on invoices in the US

Can a sole proprietor accept credit card payments on invoices?

Yes. Sole proprietors, freelancers, and independent contractors commonly accept credit cards on invoices. You may use your SSN or an EIN depending on the processor’s requirements. What matters is that you use a secure payment method and keep good records.

Do I need a business bank account?

Many processors allow payouts to a personal account for sole proprietors, but a business bank account can simplify bookkeeping and make your business look more established. If you operate as an LLC or corporation, using a business account is usually recommended.

Can I accept credit cards on PDF invoices?

Yes. Even if you send a PDF invoice, you can include a payment link or button that directs customers to a secure online checkout page. The payment itself should happen online through a secure portal, not by asking customers to type card details into the PDF.

Can I take partial payments or deposits by credit card?

Yes. Many businesses accept deposits by card to start work and then collect the remainder later. Partial payments can improve cash flow and reduce risk. If your invoicing workflow supports partial payments, make sure the invoice clearly shows the amount paid and the remaining balance.

What if my customer asks to pay by phone?

Phone payments are possible using a secure virtual terminal, but they can introduce more risk and higher fees. If you do take phone payments, avoid writing card details down and always use a secure processor interface. Whenever possible, encourage customers to use the invoice payment link for a cleaner, safer experience.

How invoice24 fits into a modern card-payment workflow

For many businesses, the easiest way to accept credit cards on invoices is to use an invoicing tool that supports a complete, end-to-end payment flow: create an invoice, send it digitally, let the customer pay securely by card, and automatically track payment status. That’s the experience customers expect, and it’s the experience that makes invoicing feel effortless rather than administrative.

In a typical invoice24-style workflow, you can create professional invoices, send them instantly, and offer card payments so customers can pay in seconds. When payments are recorded automatically, you reduce manual follow-ups and keep your books cleaner. When reminders are built in, invoices get paid faster without extra effort. And when you can support recurring invoices and partial payments, you can match how real businesses bill in the real world.

The goal isn’t just to “accept cards.” The goal is to remove friction from the entire payment process so you can spend less time chasing money and more time doing the work you’re actually paid to do.

Final checklist: accepting credit card payments on invoices in the US

Before you turn on card payments for your invoices, run through this practical checklist:

1) Use secure payment processing: Never collect card data through email or notes.

2) Make payment easy: Add a clear “Pay Now” button or link to your invoices.

3) Communicate fees transparently: If you apply surcharges or discounts, explain them clearly.

4) Keep strong documentation: Clear line items, terms, and proof of delivery reduce disputes.

5) Offer multiple payment options: Cards for convenience, ACH for lower-cost payments.

6) Automate reminders: Reduce late payments with polite, scheduled nudges.

7) Prepare for refunds and chargebacks: Have a simple, fair policy and keep records.

When you implement these steps, accepting credit card payments on invoices becomes a straightforward, reliable way to get paid faster in the US. Customers appreciate the convenience, you improve cash flow, and your invoicing process becomes more professional and scalable.