Invoice2go offers a wide range of payment options integrated directly with the app, so that you can easily send an invoice and receive payment in one centralized location. One of the options to accept online payment is by bank-to-bank transfer from your clients. This is called ‘direct transfer’ in your app.
What is direct transfer?
A direct transfer is a direct way of transferring money between two bank accounts even with different banks through the Automated Clearing House (ACH) network in the U.S. Banks and other institutions may use the terms ACH transfer or ACH payment. They mean the same thing as direct transfer.
Like card payments through Invoice2go, direct transfer payments are processed by Stripe.
What does direct transfer cost?
The following transaction fees apply for direct transfer:
ACH payments are provided with lower fees than card payments. Note that your bank account must first be verified, and then must be authorized to use. Currently, this feature is only available for US customers.
What does this mean for your clients?
Direct transfer allows your clients to either
- log into their bank and authorize payments after they follow the link on the invoice to make payments on the Invoice2go payments page; or
- use a unique bank account and routing number to pay you from their account payables systems or directly from their banking app.
What does this mean for you?
Stripe will issue a set of unique routing and account numbers to each client you send an invoice to after enabling the feature.
These banking details are unique to each client so that Stripe can identify where the money is coming from and then match it to an invoice you issued. This saves you time reconciling payments manually in your bank account.
What you need to do to get paid through direct transfer
You can accept direct transfers after setting up your Stripe account with your banking and company details. These are necessary so that Stripe can validate your business details, deter fraud and comply with government regulations.
Importantly, providing your banking details allow Stripe to make deposits when payments are received.
If the email address you use to login to Invoice2go is the same one used to register with Stripe, the app will prompt you to connect your Stripe account by signing in to Stripe within the app.
If you have already set up a Stripe account and linked your bank account
If you have already done this, perhaps when setting up for credit card, nothing else needs to be done, you can start accepting direct transfer payments immediately.
The invoices you send after you turn on direct transfer in settings will contain a new unique routing and banking for each of your client.
If you have not set up a Stripe account or linked your bank account
- Turn on direct transfer by going to your side navigation bar > Settings > Client Payment Settings > toggle ON the direct transfer option
- A Stripe account is automatically created for you when you turn on direct transfer or card payments
- Tap the black banner on top of the screen and follow the prompts to complete your set up which includes providing your company details and linking the bank account you’d like Stripe to deposit payments into
- Your clients can now pay with direct transfer when they click on View Invoice in the email that you send with your invoice.
Is this available to everyone?
Currently, direct transfers will be only available for US customers with US banks.. The Invoice2go feature is progressively being rolled out to our U.S. customers. To find out if you are already enjoying this feature, please contact our support team by reaching us at firstname.lastname@example.org.
Partnering with Stripe
Who is Stripe?
Stripe is an online payment processing company. Invoice2go’s partnership with Stripe allows our customers to manage their invoicing and receive payments in a centralized location within an integrated app.
Click here to learn more about Stripe.
What can I do with Stripe?
All payment transaction information is available in your Stripe dashboard. From your Stripe account, you can access details like incoming transactions, their associated payment ID number, when they will be deposited into your bank account, card payment history, deposit schedule, and all information related to card and direct transfers within the same page.
What will my customers see when I turn on direct transfer?
By clicking on “View invoice” in the invoice email, your customers will be able to pay with direct transfer. Your customers can click on the bank tab and will have the option to pay in two ways:
- Clicking the blue button will have them log into their bank online to pay
- Clicking the green button will allow them to copy their unique account number and routing number to paste into their own accounts payable system or online banking site or app.
How do I manually match a payment to an invoice?
Banner at the top of the invoice list will always let you know if you have payments to be manually matched. Start matching by tapping the banner. Match payments one at a time to clear all payments that need to be matched.
- Go to Invoice list
- Tap on banner at the top
- Select a payment
- Select an unpaid invoice
- Remaining amount displays the difference between the payment and the invoice amount
- Tap on Mark as paid to complete matching
- You will be returned to select payment screen
- Select another payment to finish matching for all payments
- Exit out of select payment if there are no more payments to match
My customer paid two invoices with one payment. How do I manually match the payment to the two invoices?
Select the payment by tapping the banner in the invoice list. Select one of the invoices the payment belongs to. System identifies when payment is over the invoice amount and will let you match the entire payment to the invoice selected or to match payment up to the invoice amount.
- Select “Match remaining amount to another invoice”
- Do not check “Match remaining amount to invoice”
Payment will be matched up to the invoice amount.Tap on Mark as paid to complete matching. You will land on the select payment screen and will see the remaining amount of the payment you did not match. Select the remaining payment amount to match the second invoice and complete matching.
My customer paid a deposit on their invoice or partially paid an invoice. How do I manually match this?
This is very much the same as matching a full payment to an invoice. The deposit or partial payment to be matched appear in the banner in your invoice list. Tap on the banner to enter the matching flow and select the deposit or partial payment. Match to the correct invoice. Because the invoice is not fully paid yet the invoice can still be matched when the customer makes the rest of their payment.
When your customer makes subsequent payments to the invoice, select the payment and the partially paid invoice to complete matching.
My customer made a payment that is greater than what I invoiced them for. How do I match the entire payment to the invoice?
Select the payment by tapping the banner in the invoice list. System identifies when payment is over the invoice amount and will let you match the entire payment to the invoice selected or to match payment up to the invoice amount.
- Select “Match remaining amount to this invoice”
- Check “Match remaining amount to invoice”
Entire payment amount will be matched to the invoice selected. Tap on Mark as paid to complete matching.
My customer says they've paid, but the invoice still says unpaid.
You may need to match payment to an invoice manually. Most of the time, Direct transfer will automatically match payments to an invoice but in the case that payments can not be automatically matched, you can also match the payment to an invoice.
Go to your invoice list and you should see a banner at the top letting you know that you have payments to be matched. Tap on the banner to find the payment and match it to the correct invoice.
How do I know which payment I will need to match to an invoice?
Go to your invoice list and if you have payments to be matched, a banner will appear at the top letting you know how many payments you need to match. Tapping the banner will lead you to the matching flow where you can follow the prompts to select a payment and then an invoice to match the payment to.
Which payments will be automatically matched to an invoice for me?
Pay with bank online
Payments made by customers who log into their bank online will be automatically matched to an invoice.
View direct transfer details
Payments made by customers who used their unique account and routing number will be automatically matched when customer only has one outstanding invoice and payment. In the case that the customer has multiple outstanding invoices, you will need to find the correct invoice to match the payment to.
I accidentally matched the wrong payment to an invoice. How do I match payment to the correct invoice?
- Select Invoice that you matched the payment to
- Tap Payment
- Tap View transaction history
- Select payment that you want to undo match for
- Tap Undo Match
- Go back to invoice list
- Tap banner to select payment and follow matching flow again
I received a payment but cannot find the invoice to match it to.
You may need to create an invoice first. Create invoice for the client you received a payment from to see the invoice in the matching flow.
If this is a payment for an estimate, convert the estimate to an invoice. Once the estimate is converted to an invoice, you can find the invoice in the matching flow to match the payment to.
Refunds for direct transfer payments are initiated through your Stripe dashboard. Log into your Stripe account and select the payment to be refunded.
The refund will show up anywhere between 5-10 business days after the refund is issued. This is wholly dependent on the national ACH network and the clients’ banks. When you refund an invoice, the fees you paid to process the payments for that invoice is not refunded to you.*
What happens to the invoice when I issue a refund?
Refunds for payments that are matched to an invoice will appear in the transaction history of that invoice. A refund is a credit to the invoice and the invoice will be marked as unpaid.
What happens to refunded payments that are not yet matched to an invoice?
Refund for payments that are not yet matched to an invoice will be remove the payment from the payment list in the matching flow.
*Note: This reflects changes to Stripe's policy that were enacted 9/14/2017. If set up Stripe through your Invoice2go account prior to 9/14/2017, the fees will be refunded in full — after charging and then completely refunding a payment, the net cost is zero. Additionally, prior to 9/14/2017, if you had a payment process through Stripe but did not complete underwriting for your account, the payment, including all fees, will be refunded to your client after 21 days.
- Download the Stripe app (Apple App Store, Google Play Store) or log into your Stripe dashboard on the web to view all your debit and credit card payment transactions and when your money is expected to be deposited to your bank. *Please note that Invoice2go has no control over how soon your money will be deposited in your account.
- Accepting online payments creates new opportunities for potential customers. The added flexibility of how you allow your customers to pay you makes it easier for people to do business with you.
- Accepting online payments not only saves you time so you don’t have to wait for a check in the mail or spend extra time making multiple ATM trips to deposit cash or checks, but it also minimizes the risk of misplacing your funds.