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. The entire process takes under 30 seconds for clients who are already logged into PayPal, and about 60 seconds for guest checkout where card details need to be entered manually.
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. You can also connect Slack or Microsoft Teams to receive real-time payment notifications the moment a PayPal transaction completes.
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. Revenue reports in Plutio show PayPal and Stripe payments together, so you see total income across both processors in one view. The payment method label (PayPal or Stripe) appears on each transaction, making reconciliation straightforward at tax time.
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.
PayPal vs Stripe fee comparison
Both processors charge 2.9% + $0.30 for standard card transactions. The difference appears with specific payment types: Stripe offers ACH transfers at 0.8% capped at $5, which PayPal does not match for invoice payments. For invoices over $1,000 where the client has a bank account preference, Stripe's ACH option saves significant money. For invoices under $500 where clients prefer PayPal, the fees are virtually identical.
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 to make 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. For freelancers who work with corporate clients, guest checkout is especially valuable because procurement departments often have restrictions on which vendor accounts employees can create. Guest checkout also works for clients in countries where PayPal accounts are less common but credit and debit cards are widely used.
PayPal account vs guest
- PayPal account: Faster checkout, can use PayPal balance, payment history saved, buyer protection included
- Guest checkout: No account needed, slightly more steps, card details entered each time, still processed securely through PayPal
You receive payment the same way regardless of which method the client uses. Both routes process through PayPal's secure infrastructure. The fee structure is identical for both checkout paths, so there is no cost difference between a client paying with their PayPal balance versus guest checkout with a card.
Guest checkout availability depends on the client's country. In most regions, PayPal shows the guest option automatically. In some markets, PayPal prompts account creation first, but clients can still proceed without one by selecting the card payment option.
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 directly
- Clients without PayPal accounts prefer Stripe's card checkout flow
- International clients may prefer one over the other based on regional availability
- Reducing payment friction leads to faster collection and fewer follow-up emails
How both options appear
Your invoice displays a Pay with PayPal button and a Pay with Card button side by side. The client picks their preferred method and completes checkout. Both payments record in Plutio identically, with the payment method label distinguishing which processor handled the transaction. Your revenue reports combine income from both sources, so you always see total collected revenue in one place.
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. Freelancers working with international clients in Europe, South America, or Southeast Asia often find that PayPal acceptance is higher than direct card entry because PayPal has strong brand recognition in those markets.
There is no downside to enabling both. Clients choose their preference, and you receive payment either way. The fees are identical at 2.9% + $0.30 per transaction.
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. If you already have Stripe connected, both payment options appear side by side on invoices automatically. You do not need to configure which invoices show which payment method because both appear on every invoice.
PayPal Business vs Personal account
PayPal Business accounts have higher monthly receiving limits, access to sales reports, and the ability to accept payments under a business name rather than a personal name. Personal accounts work with the integration but show your personal name on payment receipts, which may look less professional to clients. Upgrading from Personal to Business is free and takes about 5 minutes in your PayPal account settings.
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. For freelancers who work with clients in multiple countries, PayPal eliminates the need for separate bank accounts or wire transfer instructions for each region.
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. For a $1,000 USD invoice paid by a European client in euros, the conversion markup typically adds $30-40 to the total cost the client pays, but the client sees a single amount in euros rather than dealing with exchange rates themselves.
International considerations
- Regional availability: PayPal operates in most countries but has restrictions in some regions, so check PayPal's country list if you work with clients in less common markets
- Cross-border fee: Additional 1.5% fee for international transactions on top of the standard 2.9% + $0.30
- Payment holds: PayPal may hold large international payments for 24-72 hours for verification, especially on first-time cross-border transactions
- Client trust: International clients often prefer PayPal over entering card details on unfamiliar sites because PayPal's buyer protection applies regardless of country
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 disputed amount and asks you for evidence within 10 days. 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. Collecting a deposit at the proposal stage also reduces the likelihood of disputes because clients who pay upfront have already committed to the project terms.
Refund processing
If you need to issue a refund voluntarily (without a dispute), log into your PayPal account, find the transaction, and click Refund. You can issue full or partial refunds. PayPal returns their transaction fee on full refunds but keeps the fee on partial refunds. Refunded amounts deduct from your PayPal balance. Plutio does not automatically update the invoice status when you refund through PayPal, so mark the invoice as refunded manually in Plutio to keep your records accurate.
Disconnecting the integration does not affect pending disputes or refunds. All disputes must be resolved through PayPal's Resolution Center regardless of your Plutio connection status.
