Payment flow
How does PayPal payment work on Plutio invoices?
When you enable PayPal, a Pay with PayPal button appears on every invoice you send. Clients click the button and complete payment through PayPal's secure checkout. Plutio receives confirmation and marks the invoice as paid automatically.
Client experience
The client opens your invoice email and clicks View Invoice. They see the invoice total and available payment methods. Clicking Pay with PayPal opens PayPal's checkout. They log into PayPal (or use guest checkout with a card), confirm the amount, and complete payment. A success message confirms payment, and they receive a receipt from PayPal.
Your experience
You receive a notification that the invoice was paid. The invoice status changes to Paid in your Plutio dashboard. The payment appears in your payment history and revenue reports. Funds arrive in your PayPal account immediately, ready to transfer to your bank.
Automatic recording
Plutio records the payment amount, date, and method without any manual entry. Your reports stay accurate without you copying payment data from PayPal. The integration handles all the bookkeeping automatically.
What are PayPal's transaction fees?
PayPal's standard rate is 2.9% + $0.30 per transaction for US accounts. Plutio adds no fees on top of PayPal's charges.
Fee examples
- $500 invoice: $14.80 fee, you receive $485.20
- $1,000 invoice: $29.30 fee, you receive $970.70
- $5,000 invoice: $145.30 fee, you receive $4,854.70
- $10,000 invoice: $290.30 fee, you receive $9,709.70
International fees
International transactions may incur additional fees (typically 1.5% extra for cross-border payments). Currency conversion adds approximately 3-4% above the mid-market exchange rate. The exact rate depends on the currencies involved.
No hidden fees
PayPal has no monthly fees, no setup fees, and no minimum transaction requirements. You only pay when you receive payments. If no one pays via PayPal this month, you pay nothing.
Compare PayPal's 2.9% + $0.30 to Stripe's identical rate. The fees are the same. Your choice should be based on client preference, not fee comparison.
Do clients need a PayPal account to pay?
No. Clients can pay as a PayPal guest without creating an account.
When a client clicks the PayPal button on your invoice, they see options to log into an existing PayPal account OR pay with a credit/debit card as a guest. Guest checkout processes the payment through PayPal without requiring account creation.
Why guest checkout matters
Some clients resist creating new accounts for payments. Guest checkout captures these payments that would otherwise require follow-up or alternative payment methods. The client enters their card details on PayPal's secure servers and completes payment without any account creation.
PayPal account vs guest
- PayPal account: Faster checkout, can use PayPal balance, payment history saved
- Guest checkout: No account needed, slightly more steps, card details entered each time
You receive payment the same way regardless of which method the client uses. Both routes process through PayPal's secure infrastructure.
Can I offer both Stripe and PayPal?
Yes, and offering both is recommended for maximum flexibility.
When you connect both Stripe and PayPal, clients see buttons for both options on your invoices. Some clients have strong preferences based on what accounts they already have or which checkout experience they trust more. Offering both options maximizes the chance that a client pays immediately rather than delaying because their preferred method is unavailable.
Why offer multiple options
- Clients with PayPal balance want to use those funds
- Clients without PayPal accounts prefer Stripe's card checkout
- International clients may prefer one over the other based on regional availability
- Reducing friction leads to faster payment
Which to choose if you can only have one
If you must choose only one payment method, Stripe is generally the better default for most freelancers because more clients prefer card-on-file over PayPal logins. But if you know your clients prefer PayPal (common in certain industries and regions), start with PayPal.
There is no downside to enabling both. Clients choose their preference, and you receive payment either way. The fees are identical.
How do I connect PayPal to Plutio?
Connecting PayPal takes about 2 minutes. You authorize Plutio to receive payments through your PayPal account, and the connection activates immediately.
Step by step setup
- Step 1: Go to Settings in Plutio and click on Payments in the left sidebar.
- Step 2: Find PayPal in the list of payment providers and click Connect.
- Step 3: Log into your PayPal account on the authorization page. Use your PayPal Business account for the best experience.
- Step 4: Grant Plutio permission to receive payments on your behalf.
- Step 5: Return to Plutio to confirm the connection. PayPal now appears as a payment option.
After connecting, PayPal automatically appears as a payment option on all invoices. Send yourself a test invoice to verify the PayPal button works correctly before sending to real clients.
Use a PayPal Business account rather than a Personal account. Business accounts have higher transaction limits and better reporting features.
Does PayPal work for international clients?
Yes. PayPal operates in over 200 countries and supports 25 currencies.
When you invoice an international client, they pay in their local currency using their local PayPal account or cards. PayPal handles the currency conversion and deposits the equivalent amount in your currency. International payments through PayPal remove the friction of wire transfers and make cross-border payments as simple as domestic ones.
Currency conversion
PayPal converts currency at approximately 3-4% above the mid-market exchange rate. The conversion fee comes within the amount you receive. The client sees their total in their local currency. You receive your currency equivalent after conversion.
International considerations
- Regional availability: PayPal operates in most countries but has restrictions in some regions
- Cross-border fee: Additional 1.5% fee for international transactions
- Payment holds: PayPal may hold large international payments for verification
- Client trust: International clients often prefer PayPal over entering card details on unfamiliar sites
What if a client disputes a PayPal payment?
Disputes are handled through PayPal's Resolution Center. PayPal notifies you and provides an opportunity to respond with evidence.
Responding to disputes
When a client disputes a payment, PayPal freezes the funds and asks you for evidence. Provide documentation that proves you delivered the agreed services:
- Signed contracts or proposals from Plutio
- Proof of delivery (file transfers, completed work)
- Communication history showing client approval
- Project timelines showing work completed
Preventing disputes
Having a signed Plutio proposal or contract strengthens your position in disputes. PayPal protects sellers who can demonstrate the work was completed as agreed. Clear scope documentation and client sign-off at milestones reduce dispute risk significantly.
Disconnecting the integration does not affect pending disputes. All disputes must be resolved through PayPal's Resolution Center regardless of your Plutio connection status.
