Beginner
How to set up payment methods on FreshBooks
Quick Answer
Setting up payment methods in FreshBooks involves accessing the Payments section in Settings, connecting your bank account, and configuring payment gateways like Stripe, PayPal, or FreshBooks Payments. This enables clients to pay invoices directly through multiple payment options.
Prerequisites
- Active FreshBooks account
- Business bank account information
- Credit card processing account or PayPal business account
- Business verification documents
1
Access Payment Settings
Log into your FreshBooks account and click on Settings in the left sidebar. From the dropdown menu, select Payments to access your payment configuration options.
Tip
Make sure you have admin privileges on the account to modify payment settings.
2
Set Up FreshBooks Payments
In the Payments section, click Get Started under FreshBooks Payments. Fill out your business information including legal business name, address, and tax ID. Upload required documents such as a voided check or bank statement for verification.
Tip
FreshBooks Payments typically has the lowest processing fees and fastest setup time.
3
Connect Your Bank Account
Click Connect Bank Account and enter your routing number and account number. Verify the micro-deposits that FreshBooks will send to your account within 1-2 business days by entering the amounts in the Verify Account section.
Tip
Use a dedicated business checking account rather than a personal account for better financial organization.
4
Configure Additional Payment Gateways
To add PayPal, click Connect PayPal and sign in to your PayPal business account. For Stripe integration, click Connect Stripe and authorize the connection. Each gateway will require you to complete their respective verification processes.
Tip
Offering multiple payment methods can increase your invoice payment rates by up to 40%.
5
Set Payment Terms and Fees
Under Payment Settings, configure your default payment terms, late fees, and processing fee handling. Choose whether to absorb processing fees or pass them to clients by toggling Add processing fees to invoices.
6
Enable Online Payments for Invoices
Go to Settings > Invoice Customization and ensure Online Payments is enabled. This will automatically add payment buttons to your invoices. You can customize which payment methods appear by checking the boxes next to each option.
Tip
Test the payment process by sending yourself a test invoice to ensure everything works correctly.
7
Configure Automatic Payment Reminders
In Settings > Automation, set up automatic payment reminders by clicking Create Automation. Choose when to send reminders (3 days overdue, 7 days overdue, etc.) and customize the email templates for each reminder.
Tip
Gentle, professional reminders sent 3-5 days after due date typically have the highest success rate.
Troubleshooting
Bank account verification fails
Double-check your routing and account numbers for accuracy. Contact your bank to ensure the account accepts ACH transfers. If micro-deposits don't arrive within 3 business days, contact FreshBooks Support for assistance.
PayPal or Stripe connection issues
Ensure you're using a business account (not personal) for both services. Clear your browser cache and try connecting in an incognito window. Verify that your PayPal or Stripe account is in good standing and not restricted.
Clients can't see payment buttons on invoices
Check that Online Payments is enabled in Settings > Invoice Customization. Ensure at least one payment method is active and verified. Send a test invoice to yourself to confirm payment buttons appear correctly.
Processing fees not calculating correctly
Verify your fee structure in Settings > Payments > Processing Fees. Make sure the Add processing fees to invoices toggle matches your preference. Contact your payment processor if fees don't match their published rates.
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