What a payment link is and when to use one

A payment link is a URL you send to someone that takes them directly to a checkout page where they can enter their credit card details and complete a payment. You don't need to be present, and the person paying doesn't need an account with you. They click the link, pay, and you receive the money — usually within one to three business days.

Payment links work best when you're billing someone once or a few times, not running a full online store. A freelancer invoicing a client, a small business collecting deposits, a nonprofit taking donations, or someone splitting a bill with friends — these are all good uses. The link can be sent by email, text, or embedded on a website.

The payment processor handles the security and fraud checks. Your customer's card data never touches your computer or email. You get a record of every transaction, and most processors let you track which links have been paid and which haven't.

Key Takeaways

  • Payment links are created through a payment processor like Stripe, Square, PayPal, or Wise, not through your bank.
  • You set the amount, add a description, and the processor generates a unique URL you send to the person who owes you money.
  • The customer enters their card details on the processor's secure page, not yours, so you never handle the card number.
  • Funds typically arrive in your bank account within one to three business days, minus the processor's fee (usually 2.2% to 3% plus a small per-transaction charge).
  • Payment links expire after a set time (often 30 to 90 days) and can be marked as paid manually if you receive money another way.

Which payment processor to choose

The major processors that offer payment links are Stripe, Square, PayPal, and Wise. Each has different fee structures and features, so the right choice depends on how often you'll use the link and how much you're charging.

Stripe charges 2.2% plus $0.30 per transaction in the US. You can create links without a website or app — just log into your Stripe dashboard and generate one. Stripe also offers the most customization: you can add a logo, change colors, and set expiration dates. If you're sending invoices regularly, Stripe's invoicing feature integrates with payment links.

Square charges 2.6% plus $0.30 per transaction. Square's payment links are simple to create and work well if you already use Square for in-person payments. You can create a link in seconds from your Square dashboard or mobile app.

PayPal charges 2.99% plus $0.30 per transaction. PayPal links are the easiest to set up if you already have a PayPal account — you can create one directly from your account without extra setup. PayPal also accepts payments from people who don't have a PayPal account, using their credit card.

Wise (formerly TransferWise) charges a lower percentage — around 1.5% to 2% — but is designed more for international transfers than domestic credit card payments. Use Wise if you're receiving money from outside the US or sending it internationally.

Step-by-step: Creating a payment link with Stripe

Stripe is the most flexible option for payment links. Here's how to create one:

  1. Go to dashboard.stripe.com and log in (or create a free account).
  2. In the left menu, click Payment Links.
  3. Click the Create button (or New).
  4. Enter the amount you want to charge. You can set a fixed amount or allow the customer to enter their own.
  5. Add a product name or description — this is what appears on the payment page.
  6. Choose whether to allow quantity changes (if you want the customer to buy multiple units) or keep it fixed.
  7. Set an expiration date if you want the link to stop working after a certain date. If you leave this blank, the link stays active indefinitely.
  8. Click Create Link.
  9. Copy the URL and send it to your customer via email, text, or any other method.

When your customer clicks the link, they land on a Stripe-hosted checkout page. They enter their card details, billing address, and email. Stripe handles all the security. Once the payment goes through, you receive a confirmation email, and the money appears in your bank account within one to three business days.

Step-by-step: Creating a payment link with PayPal

PayPal's process is even simpler if you already have an account:

  1. Log into paypal.com.
  2. Click Tools (or your profile icon) and select Invoicing or Request Money.
  3. If using Request Money, enter the amount and a description, then click Request. PayPal generates a link you can copy and share.
  4. If using Invoicing, fill in the invoice details (amount, description, due date) and click Send Invoice. PayPal emails the invoice and provides a payment link.

The customer can pay with a credit card, debit card, or PayPal account. PayPal handles the security, and funds arrive in your account within one to three business days.

What happens after the customer pays

Once a payment comes through, the processor sends you a confirmation email with the transaction details: amount, customer name, date, and a transaction ID. The money is held briefly (usually 24 hours) while the processor checks for fraud, then deposited into your bank account.

You can see all your payment links and their status in your processor's dashboard. Most processors show you which links have been paid, which are pending, and which are unpaid. If a customer pays you outside the link (by check, cash, or another method), you can manually mark the link as paid so you don't send reminders.

If a payment fails — the card is declined, for example — the customer sees an error message and can try again. You'll see the failed attempt in your dashboard. Most processors let you resend the link or create a new one.

Fees, timing, and what to watch for

Every payment processor takes a cut. The standard range is 2.2% to 3% plus $0.30 per transaction. This means on a $100 payment, you'll receive between $96.70 and $97.50. The fee is deducted automatically before the money hits your account.

Funds typically arrive within one to three business days. Some processors offer faster payouts (next business day) for a higher fee. Check your processor's payout schedule in the settings.

Payment links do expire. Stripe links stay active indefinitely unless you set an expiration date. PayPal invoices typically expire after 30 days. If a link expires and the customer hasn't paid, you'll need to create a new one and send it again.

Watch out for refunds. If a customer disputes a charge or you issue a refund, the money comes back out of your account. Most processors hold refunds for a few days to prevent fraud, so the timeline isn't instant.

Security and fraud protection

The payment processor, not you, is responsible for security. Your customer's card details are entered on the processor's encrypted page, never on your email or website. This means you never see the full card number, and the data is protected by industry standards (PCI compliance).

Processors use fraud detection tools to flag suspicious transactions. If a payment looks risky — a card from a different country, an unusually large amount, or a rapid series of payments — the processor may decline it or ask for extra verification.

You can also set limits on your payment links. Some processors let you restrict which countries can pay, set maximum amounts, or require additional verification for large transactions. Check your processor's fraud settings in the dashboard.

Frequently Asked Questions

Can I create a payment link without a business account?

Yes. Stripe, Square, and PayPal all let you create a personal account and generate payment links. You don't need to register as a business or have a business bank account, though you will need a personal bank account to receive the money.

What if the customer's card is declined?

The customer sees an error message on the payment page and can try a different card. You'll see the failed attempt in your dashboard. The link stays active, so they can retry immediately or come back later. You can also resend the link via email as a reminder.

Can I change the amount after I send the link?

No. Once you create a link with a fixed amount, that amount is locked in. If you need to charge a different amount, create a new link. If you set the link to allow custom amounts, the customer can enter whatever they want (up to a maximum you set).

How long does it take to get the money?

Most processors deposit funds within one to three business days. Weekends and holidays can add time. Some processors offer faster payouts (next business day) for an extra fee. Check your processor's payout schedule in your account settings.

What if I need to refund a payment?

Log into your processor's dashboard, find the transaction, and click Refund. The money goes back to the customer's card within a few business days. You'll see the refund deducted from your account balance. Some processors charge a small fee for refunds.