What a payment link is
A payment link is an address on your invoice or in an e-mail with which your client can pay the amount directly. When he clicks it, he lands on a payment page with the right amount and a description. He chooses iDEALA Dutch payment method that lets a client pay straight from their own banking app. In Avsaro it runs through Mollie, if you connect it.
Read more, opens his banking app and confirms. Then he returns to a page that shows the payment went through.
The money does not go straight from your client to you. A payment provider sits in between. It receives the payment and transfers the amount to you under its own terms. For that you need your own account with such a provider.
What it saves you
- No retyping. Amount, IBAN and reference are always right, so fewer things go wrong.
- Paid faster. People who can pay the moment they open the invoice pay immediately more often.
- Less ticking off. The payment provider reports the payment, so you do not need to go through your bank statement.
- Fewer reminders. Once the payment is known, the reminders can stop.
What it costs
A payment provider usually charges an amount per payment. You pay that amount to the provider. It differs per provider and can change, so always check the provider's website for the current rate. Work it out with your own invoices: with many small amounts a fixed fee per payment weighs more than with a few large invoices.
Compare the fee with what a late payment costs you in time and reminders. For some business owners it outweighs the fee, for others it does not.
What to watch for
- You need an account with a payment provider. It checks your company details before you may receive payments. That can take a while, so arrange it well before you need it.
- Test first. Payment providers have a test mode in which you can make a payment without real money. Do that before you send a link to a client.
- Keep a second route open. Not every client wants to pay through a link. Put your bank details and a reference on the invoice as well.
- Beware of fraud. Fraudsters send fake payment links. Send the link only from your own e-mail address, and tell your client you never change bank details by phone.
- Handle refunds. A credit note has to match in your records what the payment provider has refunded.
Without a payment link
A payment link is not an obligation. Without one, your client pays by bank transfer. Then put the amount, your IBAN, the account holder, a reference and the final date clearly on the invoice, preferably with a button that lets your client copy them. You check yourself whether the money has arrived and record the payment. That costs less per invoice and a little more time.
A worked example
An invented web designer sends 20 invoices a month with an average amount of € 450. Half of them are only paid after a reminder, so ten reminders a month. Suppose a payment provider charges € 0.30 per payment (an example figure, not a current rate). Then the payment link costs € 6 a month at 20 payments.
Against that stands what the web designer no longer does: writing fewer reminders, going through fewer bank statements and calling fewer clients who say they forgot the amount. If a reminder takes a quarter of an hour, three fewer reminders a month already save 45 minutes. Work this out with your own numbers and your own hourly rate. For someone who sends few invoices, a bank transfer with clear details may be enough.
Frequently asked questions
What does a payment link with iDEAL cost?
That depends on the payment provider you use. There is usually an amount per payment. Check the provider's website for the current rate.
Is a payment link safe?
The payment itself goes through your client's bank. The risk lies in fake links. Send your link only from your own e-mail address and warn clients about fake e-mails.
Can my client pay part of an invoice?
That depends on the provider and the setting. For a deposit you usually create a separate invoice with its own link.
Do I have to use a payment link?
No. Paying with the bank details on the invoice works too, but you have to check and record the payment yourself.
This explanation is general information, not legal, tax or accounting advice. Rules change and your situation may differ. If in doubt, ask your accountant or adviser, or check with the Dutch Tax Administration (Belastingdienst) or the Chamber of Commerce (KvK).
