How to pay an invoice: Steps, tips, and best practices

Paying invoices on time is essential for keeping a company’s finances in order, whether you’re a small startup or a large corporation. When you pay your invoices promptly, you foster positive relationships with suppliers and vendors, help maintain steady cash flow, and avoid additional fees.

This article offers a practical guide for finance departments looking to streamline their invoice processing and tackle the wide variety of payment methods available. We’ll discuss when and how to pay the invoices you receive, the benefits of timely invoices and payments, and best practices so you can manage expenses with confidence.

What is an invoice payment?

An invoice payment is the transaction where a buyer—in this case, your organization—settles what’s owed to a supplier or vendor for goods or services delivered. The vendor or supplier sends an invoice that outlines details such as what was provided, the due date, the invoice number, the payment terms, and the total amount owed. Your finance or accounts payable team then reviews the invoice to ensure accuracy, confirms the due date, and initiates the payment process according to established payment schedules.

By adhering to the specified due date, you’ll avoid late fees and maintain healthy working relationships with your suppliers and vendors. Whether you choose bank transfer, ACH, credit card, or cash as your payment method, your main goal is to settle invoices in a way that supports your business needs—both short-term and long-term. 

With an efficient invoice processing system in place, your company can smoothly address accounts payable and make sure that each invoice payment is handled on time.

Benefits of paying your invoice on time 

Timely invoice payments come with several advantages for your organization. Below are four key benefits:

Builds strong business relationships

Paying invoices before or on the due date shows suppliers and vendors that you respect their payment terms and value the goods or services they provide. This can result in future discounts, more flexible payment terms, or priority service.

Keeps projects and operations on track

When your supplier or vendor knows that accounts payable will settle invoices on schedule, they’re more likely to offer reliable support, which, in turn, helps reduce unexpected delays and maintain consistent cash flow throughout your transaction cycle.

Avoids late fees and penalties

Many suppliers charge penalties or late fees when invoices aren’t paid by the due date. By meeting your invoice payment obligations promptly, you avoid incurring extra costs that can eat into your budget.

Enhances cash flow management

Timely invoice payments help you anticipate outgoing transactions and plan accordingly. When you’re proactive in paying invoices and setting a clear payment schedule, you’re better equipped to handle fluctuations in cash flow and meet other business needs.

5 invoice payment methods

There are many different payment methods you can use to settle outstanding invoices. However you choose to pay the invoices your organization receives, it’s important to know the steps involved (which we’ll cover later in this article). Below are five common approaches to paying invoices:

1. Check payment 

Paying by check remains popular for companies that prefer a paper trail. You simply issue a physical check to the supplier or vendor, including the invoice number for reference. This method can be more time-consuming than others due to mailing and receipt confirmation.

2. Cash payment 

Though less common in larger organizations, cash can be used if you’re dealing with local suppliers or vendors. Always make sure you get a receipt when providing cash for goods or services, and note the due date and total owed in your accounting records.

3. Online payment 

Online payments can include PayPal and other digital payment platforms, or direct ACH transactions. These methods streamline the payment process, often allowing you to send funds quickly without extra administrative hurdles.

4. Credit or debit card payment

Paying with a credit card or debit card can be fast, with many vendors and suppliers readily accepting these types of transactions. The biggest downside is that credit card payments often come with various fees, so it’s important to review the payment terms carefully. Debit cards draw directly from your bank account, so keep track of your balance to avoid overdrafts.

5. Bank transfer payment 

A bank transfer electronically moves funds from your account to that of your supplier or vendor. This can be a reliable way to pay a large bill or handle international transactions. Many companies use ACH bank transfers for domestic payments.

How to pay an invoice using different payment methods 

Each payment method has its own unique payment process. Below are step-by-step guides to help you navigate common ways to pay the invoices you receive from your vendors and suppliers.

How to pay an invoice with credit card

1. Choose a secure payment processor

Make sure the supplier or vendor uses a reputable platform. You could also use your own preferred service if they accept external credit card payments.

2. Enter and verify credit card details

Double-check the invoice number, total owed, due date, and any relevant discounts. Make sure you have the correct billing address associated with your account.

3. Confirm payment and keep records

Save the digital receipt in your accounting or invoicing software for future reference. This helps you maintain clean accounts payable records.

How to an pay invoice by check

1. Write a business check correctly

Include the invoice number, date, and total amount on the check. Indicate your company name clearly, and sign it.

2. Mail or deliver the check securely

If mailing, use a trackable method to avoid having to cancel transactions due to lost checks. Always attach a copy of the invoice or a remittance slip for clarity.

3. Confirm receipt and reconcile the payment

Follow up with the supplier to make sure they received and cashed the check. Record the transaction in your accounting records to finalize the payment process.

How to pay an invoice online

1. Use a bank transfer or ACH payment

An ACH transaction draws directly from your bank account. Input the supplier’s or vendor’s bank account details, confirm the invoice total, and check the due date.

2. Pay through online payment platforms 

Another option is to use PayPal or similar digital payment systems, if the vendor or supplier offers them. Watch out for fees that might be associated with these platforms.

3. Automate recurring invoice payments

If you have repeated bills from the same vendors, you can set up recurring payments through your invoicing or accounting software. This keeps your payment schedule consistent and prevents missed due dates.

How to pay for an international invoice

1. Choose the best international payment method

Options might include wire transfers or specialized cross-border payment platforms. Make sure you meet your supplier’s payment terms with whatever payment method you choose.

2. Understand exchange rates and fees

International transactions often involve fees and variable exchange rates. Compare providers to find potential discounts or lower transaction costs.

3. Verify payment security and compliance 

Confirm that your accounts payable department follows all relevant regulations. Keep a record of each transaction, including the payment date, for clarity if fees or discounts apply.

4 invoice payment best practices  

Implementing the best practices below can help you streamline the invoice processing cycle and avoid extra fees or confusion. Here are four tips to try:

1. Maintain a structured invoicing schedule

Set recurring payment schedules within your accounting software to handle weekly, bi-weekly, or monthly bill payments. This allows you to consistently pay invoices ahead of the due date and integrate payments with your general ledger to track every transaction in your accounts.

2. Enable automated recurring payments

Whenever possible, consider using automated recurring payments for your regular suppliers. Not only does this help you pay the invoices on time, but it also cuts down on manual data entry and potential human error in your invoicing process.

3. Select the best payment option

Each of your vendors or suppliers might prefer different payment methods—bank transfer, ACH, credit card payments, or even online platforms like PayPal. Weigh the fees, payment terms, and how quickly the transaction clears to pick the most efficient route to suit your business needs.

4. Leverage invoicing software

Modern invoicing software can streamline the entire transaction lifecycle. From automatically calculating discounts to sending out reminders before the due date to automating your recurring payments, these tools help your accounts payable department stay organized and on schedule.

How to pay an invoice with Rippling

For bill payments without the busy work, you need Rippling.

Rippling Bill Pay is the fastest way to route, review, approve, and pay invoices. With Rippling, you can:

• Create hyper-custom approval rules that automatically route bills to the right approvers at the right time, based on employee attributes, vendors, invoice amount, and more
• Grant access to bills based on employee attributes, like department and level, as well as invoice data, so everyone can only view and approve bills relevant to their role
• Comment directly on a bill to ask colleagues for additional context about a vendor
• Pay vendors and contractors internationally in their local currency—and simultaneously pay and record bills, so you never have to reconcile a foreign currency
• Allow vendors to securely upload invoices, update their billing info, manage their payment details, and more

And with Rippling Spend Management, you can integrate invoice payments with your organization’s other spending—while gaining complete visibility and automated policy controls across every type of spend—saving you time and money in a single platform. Rippling helps you track all corporate spend down to the decimal—from invoices, expenses, and corporate cards, to travel and payroll—from a single location.

How to pay an invoice FAQs

How do I pay an invoice from my bank account?

To pay an invoice directly from your bank account, you can initiate a bank transfer or set up an ACH payment. Collect the supplier’s or vendor’s banking details, confirm the due date, add the invoice number, and complete the transaction via your bank’s process. Always verify the final amount owed and any potential discounts before sending money.

How to get an invoice paid?

If you’re the one requesting payment, send clear and itemized invoices with a specific due date and payment terms. Follow up with polite reminders before and after the due date, and offer multiple payment options—like credit card, PayPal, or bank transfers—to encourage on-time transactions. This ensures your supplier or vendor relationship remains positive.

How to make someone pay an invoice?

When a client or customer owes you money, request payment firmly but politely. Provide a detailed invoice with the invoice number, a clear due date, and any discounts or late fees that apply. If the client is still not paying the invoice, consider additional measures such as a phone call, final written notice, or professional mediation.

This blog is based on information available to Rippling as of March 11, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.