Can I invoice clients and accept payments online in the US?

Can I invoice clients and accept payments online in the US?

Yes—you can invoice clients and accept payments online in the United States, and for many businesses it’s now the normal way to get paid. Whether you’re a freelancer, consultant, agency, contractor, e-commerce seller, or a small business with recurring clients, online invoicing and digital payments can reduce admin work, speed up cash flow, and improve the customer experience.

The key is doing it in a way that fits your business model, complies with common US tax expectations, protects you from disputes, and keeps payments as frictionless as possible. This article walks through what’s allowed, what’s practical, and what to include on invoices—plus how to build a clean workflow using invoice24 so you can invoice clients, accept payments, and keep records organized.

Why online invoicing and payments are widely used in the US

Online invoicing and digital payments are widely used because they solve everyday problems: paper invoices get lost, checks take time, and manual bookkeeping causes errors. When you invoice online, your client receives a clear bill instantly, can pay from their phone or laptop, and both sides get a record of what was sent and when.

For businesses, online invoicing also supports consistent branding, standardized payment terms, automated reminders, and a better view of accounts receivable. Many companies choose vendors based on professionalism and convenience—and a polished invoice with easy payment options signals that you run a reliable operation.

Who can invoice clients and accept online payments?

In general, you can invoice and accept payments online in the US whether you are:

• A sole proprietor (including freelancers and gig workers)

• A single-member LLC

• A multi-member LLC

• An S corporation or C corporation

• A partnership

• A nonprofit organization (with appropriate accounts)

You can invoice US clients even if you’re located outside the US, as long as you can legally provide the service or goods and you have a way to accept payment. Similarly, US-based businesses can invoice international clients, though currency, tax, and payment methods may vary.

Where things become “it depends” is not whether invoicing is allowed, but how you handle taxes, how you describe what you sold, which payment methods you offer, and how you manage chargebacks and disputes.

What makes an invoice “valid” in the US?

In the US, there isn’t one single federal “invoice format” law for all businesses. Invoices are primarily business documents used for billing, recordkeeping, and tax documentation. That said, a professional invoice should include enough detail to clearly describe the transaction and support your accounting.

Most clients (and many accounting departments) expect to see:

• Your business name (and “doing business as” name if applicable)

• Your business address and contact details

• Client name and client billing address

• Invoice number (unique and sequential is best practice)

• Invoice date

• Payment due date or payment terms (e.g., Net 15, Net 30, Due on receipt)

• Line items describing products/services

• Quantity, rate, and line totals

• Subtotal, taxes (if applicable), discounts, and total amount due

• Accepted payment methods and instructions

For certain industries and contracts, you may need extra details, like a purchase order (PO) number, project reference, milestone terms, retainers, or delivery dates. invoice24 is designed to include all the standard fields clients expect and keep your invoice numbering and records tidy.

What payment methods can you accept online?

Online payments in the US typically fall into a few categories. Many businesses offer more than one option so clients can pay using what’s easiest for them.

Credit and debit cards

Card payments are popular because they are quick and familiar. Clients can pay instantly without needing bank routing details. Cards are especially useful for smaller invoices, new clients, or situations where speed matters. Card processing usually includes a fee, and disputes can occur, so it’s important to use clear invoice descriptions and maintain proof of delivery for services or goods.

ACH bank transfers

ACH transfers move money directly from a client’s bank account to yours. ACH is common for B2B payments, retainers, recurring billing, and larger invoices because fees can be lower than card processing. ACH payments may take a bit longer to clear than cards, but they can be a great fit for predictable revenue and larger clients.

Digital wallets

Some clients prefer to pay using digital wallets. These are convenient for the payer and can reduce friction. Whether this is ideal for your business depends on your typical client type, invoice amounts, and the tools you use to process payments.

Wire transfers

Wires are often used for large transactions or time-sensitive payments. Fees can be higher, and clients must initiate the payment from their bank. It can be helpful to include wire instructions on invoices for clients who request it, especially for high-value projects.

Checks (as a backup)

Even if you invoice online, some clients still pay by check, especially larger organizations. An online invoice can still help by providing a clear amount due, invoice number, and mailing instructions. If you accept checks, it’s wise to include a “Payable to” name and address.

How accepting payments online changes your workflow

When you accept payments online, invoicing becomes more than sending a PDF. A modern workflow often includes:

• Creating an invoice with clear terms

• Sending it digitally (email link, downloadable PDF, or client portal)

• Providing a pay-now option (card, ACH, or wallet)

• Automatically tracking who has viewed and paid

• Sending reminders for overdue invoices

• Logging payments and reconciling amounts

invoice24 is built to support this end-to-end workflow. Instead of managing invoices in one tool and payments in another, you can keep invoicing organized and payments straightforward. The result is less time chasing payments and more time doing billable work.

Taxes: what to consider when invoicing in the US

Taxes are often the biggest point of confusion. In the US, the tax impact of an invoice depends on what you sell, where you operate, and the client’s location. This section provides practical guidance, but businesses should tailor it to their specific circumstances.

Income taxes (federal and state)

Your invoices represent business income. Most businesses will report this income to the IRS and, where applicable, to state tax authorities. Whether you pay taxes based on invoicing or actual payment depends on your accounting method:

• Cash basis: You generally recognize income when you receive payment.

• Accrual basis: You generally recognize income when you issue the invoice or earn the revenue, even if payment comes later.

Many small businesses use cash basis accounting because it’s simpler, but some businesses are required or prefer to use accrual. Keeping invoices well-organized in invoice24 helps you track revenue and support your bookkeeping regardless of method.

Sales tax

Sales tax in the US is mostly handled at the state and local level. Whether you must charge sales tax depends on:

• The type of product or service you sell

• Where your business has tax obligations (often tied to “nexus”)

• Where your customer is located and where the product/service is delivered

Some services are taxable in some states and not in others. Many digital services and SaaS products have state-specific rules. If you need to charge sales tax, your invoice should show the tax rate and the tax amount separately, and you should track collected taxes for filing. invoice24 can help by letting you add tax lines and keep invoices consistent and clear.

1099s and contractor payments

If you provide services as an independent contractor to a US business, they may ask you for a W-9 and may issue a 1099-NEC at year end if they meet reporting thresholds. This does not change whether you can invoice or accept online payments—it simply affects how the client reports payments to the IRS.

To make year-end reporting easier, keep your invoices descriptive and consistent. Include your business name and address, and ensure invoice numbers and payment records are easy to locate.

What to include on invoices to avoid delays and disputes

A good invoice is easy to approve and hard to misunderstand. Many late payments happen because the invoice lacks details, the client can’t match it to a project, or the internal approver asks questions. Here are practical elements that reduce back-and-forth.

Clear descriptions of work

Use plain, specific line-item descriptions. Instead of “Consulting,” try “SEO consulting – January 2026 (8 hours)” or “Website redesign milestone 2: responsive templates.” Clear descriptions help your client approve the invoice quickly and help you defend the charge if there’s a dispute.

Project references

Add any identifiers the client uses to match invoices internally. Common examples include PO numbers, project codes, contract references, and department names. If your client requires a PO, include it on the invoice to avoid rejection.

Payment terms and late fees

State the due date and terms clearly. If you charge late fees or interest, make sure that policy is agreed upon in advance, ideally in your contract. Your invoice can reference the policy (for example, “Late payments may incur a fee per agreement”). Clarity helps set expectations and reduces awkward conversations later.

Accepted payment methods

Make payment instructions obvious. If you accept card and bank transfer, include a clear payment button or link and brief alternative instructions if needed. If you accept checks, list where to mail them and who to make them payable to. invoice24 can present payment options in a clean, client-friendly way.

How to set up online invoicing and payments with invoice24

To run a smooth billing system, you want invoices to be consistent, easy for clients to pay, and easy for you to track. Here’s a practical setup approach.

Step 1: Create your business profile

Add your business name, address, email, and phone number so they appear automatically on every invoice. If you have a logo, adding it improves professionalism. Consistent branding builds trust and can reduce client hesitation.

Step 2: Configure invoice numbering

Use a clear, sequential invoice numbering system. Many businesses use a format like “2026-001” or “INV-1001.” The specific format matters less than consistency and uniqueness. invoice24 helps you maintain organized invoice numbers so you don’t accidentally duplicate them.

Step 3: Save your products/services

If you often bill for the same services, set up reusable items such as “Monthly retainer,” “Design hours,” or “Maintenance plan.” This speeds up invoice creation and reduces errors.

Step 4: Add payment options

Connect the payment methods you want to offer so clients can pay online. Many businesses start with card payments for convenience, then add ACH for lower fees on larger invoices. Make sure the client can see and use the option without extra steps.

Step 5: Create professional templates

A consistent invoice template helps clients recognize your invoices and process them faster. Use a clean layout with clear totals and terms. invoice24 includes the features needed for professional invoices—line items, taxes, discounts, notes, and payment instructions—so you can match what clients expect.

Step 6: Set reminders and follow-ups

Payment reminders dramatically reduce overdue invoices. Set gentle reminders before the due date and after it. A simple message like “Just a reminder that invoice #123 is due on Friday” can prevent late payments without straining relationships.

Getting paid faster: practical tips that work in the US

Accepting payments online is a major step, but small workflow improvements can accelerate cash flow even more.

Offer multiple payment options

Different clients have different payment preferences. Some pay by card for speed, others require ACH for internal policy. When you support multiple methods, you reduce friction and avoid “we can’t pay that way” delays.

Invoice immediately

Many businesses lose time simply because invoices go out late. Send the invoice as soon as the work is delivered or the milestone is approved. If you use retainers or recurring billing, schedule invoices consistently.

Use deposits or milestone billing

For larger projects, consider billing a deposit upfront or splitting work into milestones. This reduces your risk, improves cash flow, and aligns payment with progress. Your invoice should clearly label deposits and indicate whether they are refundable (based on your agreement).

Make the due date unmissable

Clients often glance at invoices quickly. Put the due date where it’s easy to spot, and use straightforward terms like “Due on February 15, 2026” instead of vague wording. Clear due dates reduce misunderstandings.

Follow up professionally

Late payments happen. Keep follow-ups calm and factual. Reference the invoice number, amount due, and due date. Offer to resend the invoice or provide any details they need for approval. invoice24 helps by keeping invoice status and details easy to find, so you can follow up confidently.

Handling refunds, partial payments, and credits

Real-world billing isn’t always a single payment in full. You might need to record partial payments, issue a credit, or process a refund. A good invoicing system should support these scenarios clearly so your books and your client’s records match.

Partial payments

If a client pays in installments, record each payment and show the remaining balance. This avoids confusion and helps both parties stay aligned. Make sure the invoice notes or payment terms clarify whether partial payments are allowed and whether work continues while a balance remains.

Credits and adjustments

If you apply a discount after invoicing, correct an error, or compensate for a change in scope, it’s best to document it with a credit note or an adjusted invoice record rather than informal email statements. Clear documentation helps prevent disputes and simplifies bookkeeping.

Refunds

Refund policies should be set in advance, especially for deposits and services. If you issue a refund, keep a record of the reason, date, and amount. When refunds happen through card payments, they often return to the client’s card; bank refunds may require a separate transfer. Maintain documentation in invoice24 so your records remain complete.

Disputes and chargebacks: how to protect your business

When accepting online payments—especially cards—you should be prepared for occasional disputes. Most disputes can be avoided by improving clarity and keeping proof of delivery.

Reduce misunderstandings with strong documentation

Use invoices with detailed line items and include a short description of deliverables. For services, keep basic records like meeting notes, time logs, project updates, approvals, and delivery confirmations. For digital goods, keep evidence of access, downloads, or delivery emails.

Use clear terms

Your contract should define scope, payment schedule, refund policy, and what counts as acceptance of work. Your invoice should match your contract language. The more consistent you are, the less room there is for confusion.

Keep communication professional

If a dispute arises, respond calmly and provide documentation. Refer to invoice number, dates, and what was delivered. Many disputes resolve quickly when the client sees clear records.

Security and privacy when invoicing online

Clients care about security when paying online, and you should too. Online invoicing reduces some risks (like checks getting lost) but introduces others (like phishing attempts or account compromise). A few habits go a long way.

Use strong account access controls

Use strong passwords and enable any available account security features. Limit access if multiple team members use your invoicing account. Keep roles clear: someone who creates invoices may not need the same access as someone who manages finances.

Be cautious with payment instructions

If you accept bank transfers, provide instructions in a consistent and secure way. Clients can be targeted by invoice fraud where scammers change payment details. Consistency helps clients recognize legitimate invoices.

Protect client data

Only collect the client information you need to invoice accurately. Store it in your invoicing system rather than scattered email threads and spreadsheets. invoice24 helps keep client information organized and reduces exposure from fragmented files.

Common scenarios: what online invoicing looks like in practice

To make this more concrete, here are typical ways US businesses use online invoicing and payments.

Freelancers and consultants

Freelancers often invoice per project, per hour, or per monthly retainer. The most effective approach is to send invoices promptly, include clear descriptions and time periods, and offer instant online payment so clients can pay immediately after approval.

Agencies and studios

Agencies commonly bill via milestones: deposit to start, payment at key stages, and final payment at delivery. Online invoices keep each milestone clear and trackable. Agencies also benefit from having templates, client profiles, and standardized terms, all of which reduce administrative overhead.

Contractors and trades

Contractors may invoice for materials, labor, and change orders. Detailed line items matter here because clients want to see exactly what was billed. Online payment options can reduce delays after job completion, especially for residential clients who prefer card payments.

Subscription and recurring services

Recurring services—maintenance plans, coaching, content retainers—often succeed with consistent monthly invoices and automatic reminders. When clients can pay online quickly, you reduce churn caused by billing friction and keep revenue predictable.

What if my client requires specific invoicing rules?

Some larger organizations have invoice requirements: specific fields, a billing contact, a PO number, or a preferred invoice format. This is normal. If a client requests something specific, you can typically accommodate it by customizing invoice fields and ensuring you include the details their accounts payable team needs.

It also helps to ask the client early—before you send your first invoice—whether they require a PO number, specific wording, or a vendor onboarding process. Once you set it up, invoice24 makes it easy to apply the same requirements to every invoice for that client.

How to write payment terms that make sense

Payment terms communicate when payment is due and what happens if payment is late. In the US, common terms include:

• Due on receipt: Payment is due immediately.

• Net 7 / Net 15 / Net 30: Payment is due 7, 15, or 30 days from the invoice date.

• 50% upfront, 50% on delivery: Common for project work.

Choose terms that fit your industry and cash flow. If you’re working with corporate clients, Net 30 may be standard. If you’re working with smaller clients or high-demand services, shorter terms may be appropriate. Whatever you choose, be consistent, include the due date, and make it easy for the client to pay.

Do I need to register a business to invoice clients?

You can invoice clients as an individual or as a formal business entity, depending on your situation. Many people start as sole proprietors and later form an LLC or corporation for liability protection, branding, or tax reasons. The ability to invoice and accept payment online doesn’t require a corporation by default, but your payment accounts and tax setup should match your business status.

If you operate under a business name, it’s helpful to use the same name consistently on invoices, banking, and client agreements. Consistency reduces client confusion and can help with payment processing verification.

Best practices for keeping records

Online invoicing makes recordkeeping easier, but you still need a system that keeps everything organized. Strong records help you understand revenue, prepare for taxes, and handle client questions months later.

Keep invoices, payments, and client details in one place

When records are scattered across email threads, PDFs, and spreadsheets, mistakes happen. invoice24 centralizes invoices and client data so you can quickly find what you sent, when you sent it, and what was paid.

Track invoice status

Know which invoices are drafted, sent, viewed, paid, and overdue. When you can see status at a glance, you can prioritize follow-ups and reduce missed revenue.

Reconcile payments regularly

Set a habit—weekly or biweekly—to confirm that your invoices match deposits in your bank account. This helps catch missed payments, partial payments, and processing issues early.

Save supporting documents

For major invoices, keep supporting materials like signed agreements, work approvals, delivery confirmations, and change orders. This reduces risk and makes disputes easier to resolve.

Frequently asked questions about invoicing and accepting online payments in the US

Can I invoice US clients if I’m not in the US?

In many cases, yes. You can invoice US clients for services or products you provide, and you can accept online payments if you have a payment method available to you. You’ll want to be clear about currency, payment methods, and any tax forms your client may request for their records.

Can I add sales tax to my invoices?

You can add sales tax if you are required to collect it for the transaction. Whether you must collect sales tax depends on the type of sale and where you have sales tax obligations. If you do collect it, display it clearly as a separate line on the invoice and keep records for filing.

Should I accept card payments even if there are fees?

For many businesses, the speed and convenience outweigh the fees, especially if card payments reduce late payments. Some businesses adjust pricing or offer ACH as an alternative for larger invoices. The best approach is to offer options and choose the mix that fits your typical invoice size and client preferences.

What should I do if a client is late paying?

Start with a friendly reminder referencing the invoice number, amount due, and due date. If there’s no response, follow up with a firmer but still professional message and ask whether they need any details for processing. Clear invoicing and easy online payments reduce late payments, but consistent follow-up is still important.

Is it okay to request payment before starting work?

Yes, it’s common to request a deposit or full payment upfront depending on the type of work and your policies. Deposits are especially common for custom projects, high-demand services, and new client relationships.

Putting it all together with invoice24

So, can you invoice clients and accept payments online in the US? Absolutely. The real advantage comes from doing it in a way that looks professional, gets you paid faster, and keeps your records clean.

With invoice24, you can create professional invoices, include all the details clients expect, offer convenient payment options, track invoice statuses, send reminders, and keep client and billing information in one organized place. That means fewer delays, fewer awkward follow-ups, and a smoother experience for both you and your clients.

If your goal is to run billing like a pro—without complicated tools—online invoicing and payments are one of the simplest upgrades you can make. Set your terms, send clear invoices, make it easy to pay, and let invoice24 handle the workflow that keeps your business moving.