Understanding the Difference Between Automatic and Invoice Payment Links in Paddle

Hi, I'm Alex and welcome back to the Boathouse paddle series where we talk about everything concerning Paddle. In today's post, we will dive into a frequently asked question: Do you know the difference between an automatic payment and the manual invoice option in Paddle? Both options seem to lead to a Paddle checkout, but there's a crucial difference. Let's explore what sets them apart and how to use them effectively.

Introduction to Paddle's Billing Options

When you create a new subscription for a customer in the Paddle interface, you have two primary billing options:

  1. Automatic Billing
  2. Manual Invoice

Both of these methods allow customers to end up at the same Paddle checkout interface, but they serve different purposes and have different functionalities.

Automatic Billing: Set and Forget

Automatic billing is the default method for creating subscriptions for your customers. Here’s how it works:

By opting for automatic billing, you're setting up a process where customers are charged on a recurring basis without needing further action from either party.

Manual Invoice: One-Time Transactions

Manual billing is a bit different. When you choose manual billing:

Key Differences:

Practical Applications

Knowing when to use each billing option can optimize your financial processes and enhance customer experience.

When to Use Automatic Billing

When to Use Manual Billing

Conclusion

To recap, both billing options lead customers to the familiar Paddle checkout, but automatic billing is for recurring payments, while manual billing is suited for one-time transactions. Choosing the right method facilitates smooth financial transactions, catering to diverse business needs.

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