What a payment link is and why you'd send one

A payment link is a URL you send to a customer that takes them directly to a checkout page where they can pay you. You don't need their card details, and they don't need to log into anything. They click the link, enter their payment method, and the transaction goes through. The link can be sent via email, text, invoice, or anywhere else you communicate with customers.

Payment links work because they're generated by a payment processor—a company like Stripe, Square, PayPal, or Shopify that handles the actual transaction. The processor creates the link, hosts the payment page, and processes the card or bank transfer. You just send the link and wait for the payment to land in your account.

This method is useful when you don't have a website, when a customer prefers not to enter their card on your site, or when you're invoicing someone and want to make payment as frictionless as possible. It also works across devices and doesn't require the customer to download anything.

Key Takeaways

  • Payment links are generated by payment processors like Stripe, Square, or PayPal and can be sent via email, text, or invoice.
  • You set the amount, description, and payment methods accepted before generating the link; the customer sees only the checkout page.
  • The payment processor handles fraud protection, PCI compliance, and deposits the money into your bank account after processing.
  • Most payment links expire after a set time (typically 30 to 90 days) or after the payment is completed, so resend if needed.
  • Fees vary by processor but typically run 2.2% to 3% plus a per-transaction fee, charged when the payment clears.

How to generate a payment link through your processor

The exact steps depend on which payment processor you use, but the general flow is the same. Log into your account dashboard, find the section for invoices, payment links, or checkout links (names vary), and click the button to create a new one.

You'll enter the amount the customer owes, a description of what they're paying for (optional but helpful), and which payment methods you want to accept—usually credit card, debit card, and sometimes bank transfer or digital wallets like Apple Pay or Google Pay. Some processors let you set an expiration date; others do it automatically. Once you confirm, the processor generates a unique URL. Copy that URL and send it to your customer however you normally communicate with them.

If you're using Stripe, go to the Invoicing section, create an invoice, and Stripe generates a payment link automatically. With Square, use the Invoices tool or the Payment Links feature in your dashboard. PayPal has a Money Request tool that creates a link. Shopify generates payment links through the Buy Button or the Shopify POS system. Each processor's interface is slightly different, but they all ask for the same core information: amount, description, and payment methods.

What happens when your customer clicks the link

The customer lands on a checkout page hosted by your payment processor. They see the amount owed and a description of what they're paying for. They enter their payment method—card number, expiration, and CVV, or they log into their digital wallet. The processor encrypts this information and processes the transaction in real time.

If the payment goes through, the customer sees a confirmation page. They may also receive a receipt via email, depending on how you've set up the link. The money moves from their bank or card issuer to your processor's account, and then to your bank account. This usually takes one to three business days, though some processors offer faster settlement for a fee.

If the payment fails—card declined, insufficient funds, or fraud detection—the customer sees an error message and can try again with a different payment method. The link remains active (unless it's expired) so they can attempt the payment multiple times.

Fees and how they're charged

Payment processors charge a fee each time a payment clears through your link. The fee structure is usually a percentage of the transaction plus a flat per-transaction amount. For example, Stripe charges 2.2% plus $0.30 per transaction for card payments in the US. Square charges 2.6% plus $0.30. PayPal's rate depends on your account type but typically runs 2.2% to 3.49% plus $0.30.

These fees are deducted from the payment before it reaches your bank account. If a customer pays you $100 through Stripe, you receive approximately $97.50 (minus the 2.2% and $0.30 fee). Some processors offer lower rates if you process a high volume of transactions or if you're a nonprofit. Check your processor's pricing page for current rates, as they change occasionally.

You don't pay anything to generate or send the link itself—only when a payment actually clears. If a customer clicks the link but doesn't complete the payment, you're not charged.

Expiration, resending, and tracking payments

Most payment links expire after a set period—typically 30 to 90 days, depending on your processor. Some expire immediately after a successful payment; others remain active indefinitely. Check your processor's settings to see how long your links stay valid. If a link expires and the customer tries to use it, they'll see an error. You can generate a new link and resend it.

Your processor's dashboard shows you the status of each link: whether it's been paid, pending, or unpaid. You can see which customers have clicked the link, when they clicked it, and whether the payment cleared. This makes it easy to follow up with customers who haven't paid yet. Most processors let you resend the link directly from the dashboard with a single click.

If you need to cancel a link—because the customer paid by another method or the deal fell through—you can usually deactivate it in your dashboard. Once deactivated, the link no longer works, and customers who click it see an error.

Security and fraud protection

Payment processors handle the security for you. They encrypt all card data using industry-standard encryption (TLS), so your customer's information is protected in transit. The processor also doesn't store the full card number on your end—it's tokenized, meaning only the processor sees the sensitive details.

Processors also run fraud detection on every transaction. If a payment looks suspicious—wrong geographic location, mismatched billing address, velocity checks (too many transactions in a short time)—the processor may decline it or flag it for review. This protects both you and your customer.

You're not responsible for PCI compliance (the Payment Card Industry Data Security Standard) when you use a payment link, because the processor hosts the checkout page, not you. If you were collecting card details yourself on your own website, you'd need to meet PCI standards. Payment links eliminate that burden.

Alternatives if payment links don't fit your situation

If you need customers to pay recurring amounts—a subscription or monthly retainer—a payment link isn't ideal because it's designed for one-time payments. Instead, set up a subscription or recurring billing plan through your processor. Most processors offer this feature and will charge the customer automatically on a schedule you set.

If you're running a business with many customers and need invoicing, accounting integration, and payment tracking built in, consider dedicated invoicing software like FreshBooks, Wave, or QuickBooks. These tools generate payment links but also track expenses, send reminders, and integrate with your bank account for accounting purposes.

If you want customers to pay on your own website without leaving your site, you can embed a payment form or checkout directly into your website using your processor's API or a pre-built plugin. This keeps the customer on your domain but requires more technical setup than a simple link.

Frequently Asked Questions

Can I set a payment link to expire after a certain date?

Most processors let you set an expiration date when you create the link. Stripe, Square, and PayPal all offer this option. Once the date passes, the link stops working and customers see an error. You can generate a new link and resend it if needed.

What if a customer's payment fails when they click the link?

The customer sees an error message and can try again with a different payment method. The link stays active (unless expired) so they can attempt payment multiple times. You can also follow up and resend the link if they don't complete the payment within a few days.

Do I need a business bank account to receive payments from a link?

No, but you do need a bank account in your name. Most processors deposit payments into whatever account you connect during setup. Some allow personal accounts; others require a business account. Check your processor's requirements when you sign up.

Can I customize how the payment link looks?

You can usually add your logo, business name, and a description of what the customer is paying for. Some processors let you customize colors and fonts. The checkout page itself is hosted by the processor, so you can't fully rebrand it, but you can make it recognizable as coming from you.

How long does it take for the money to reach my bank account?

Most processors deposit payments within one to three business days. Some offer faster settlement (next business day or same day) for a higher fee. Check your processor's settlement schedule in the dashboard or account settings.