Ordering goods or services with instant non-cash payment guarantees benefits for the buyer and seller. At the same time, financial transactions are safe, comfortable, and quickly completed. For individual entrepreneurs and representatives of small and medium-sized businesses, this helps attract customers and increase turnover.
Individuals who prefer online shopping trust payment systems. They are a third party guaranteeing the absence of fraudulent factors. For the convenience of customers, they use the electronic invoicing option, which today is suitable for small stores, large trading platforms, wholesalers, and retailers. This article will teach you how invoicing works and who uses it. When making online payments, you can take into account foreign exchange rates in Ukraine using the Rates service.
What Is Invoicing?
In the international economy, electronic invoicing means issuing an invoice to the buyer when making an online payment. Modern systems carry out procedures by sending SMS to a mobile number, using instant messengers, email, and other communication channels. E-invoicing is used to generate:
- payment registers;
- orders for work or services, delivery of goods;
- documentation for payment;
- agreements, amendments to contracts;
- acceptance certificates, reconciliations, as well as other types of financial documentation.
Documents for payment are generated in the seller’s personal account, which is presented on the aggregator’s website. After the procedure is completed, the data is sent to the buyer. The generated invoice must contain a link to the payment service, where a convenient method for transferring funds to the seller is selected.
Financial transactions are processed exclusively by the processing center. Funds are credited to the specified details. The system must notify the buyer about the completion of the transfer of funds to the seller’s account.
Who Uses Invoicing?
E-invoicing is a relevant tool for small and medium-sized businesses and individual entrepreneurs. Generating electronic documents using this technology is suitable for owners of online stores, for example, on social networks. Such trading platforms do not have full-fledged websites but allow visitors to buy goods or order services online.
According to data from Kepios, as of October 2023, 61.4% percent of the global population uses social networks. Registered users of Facebook and Instagram often organize online stores. However, transferring payment from a Visa or Mastercard bank card to the seller’s details does not always inspire confidence, especially given the increase in online fraud. This method of carrying out financial transactions when shopping online may not be comfortable for the buyer. For example, there is no ability to use electronic money. Invoicing for small online stores is an effective solution. This is a way to offer customers secure financial transactions and convenient cashless payments.
E-invoicing is also suitable for entrepreneurs working to develop their businesses and freelancers, including copywriters, web developers, translators, tutors, and designers. Online invoicing allows individual entrepreneurs to quickly generate an invoice for their work and send it to customers. This technology does not require the freelancer to provide personal information.
Online or commercial invoicing is suitable for facilitating the work of medical organizations, clinics, online stores, freelance exchanges, and other types of businesses. This method of generating payment documents is often used by large e-commerce projects, representatives of small or medium-sized businesses, travel agencies, ticket sales companies, and educational organizations. Online invoicing is also suitable for companies that prefer non-cash payments with foreign partners (legal entities, individuals), for example, JPMorgan Chase, Allstate, or Binance, which is behind the release of Binance Coin.
How Invoicing Works
Business owners will need to turn to aggregators to connect online invoicing. Some financial systems offer their partners the option of generating electronic documents by default. You can create an invoice only after activating the option, for example, by confirming the existence of a selling profile on a social network or other trading resource.
An electronic invoice is generated on the payment aggregator website in your personal account. The operating principle of online invoicing can be described in the following stages:
- The seller fills out the form, enters information about the ordered goods or 4work the payment amount, and cash register information;
- A link to a payment document is generated;
- Information is sent in any chosen way: via instant messengers, social networks, email or SMS;
- After receiving the notification, the customer clicks on a link to be redirected to the third-party aggregator’s website;
- Bank card details are entered into a special field; payment is made for the ordered services, work, or goods;
- After processing, the money is credited to the entrepreneur’s bank account.
Payment systems charge a commission to generate invoices for payment of orders. The remuneration amount can be considered in the tariff for cooperation with the aggregator or presented separately. The operator creates detailed instructions for the convenience of online store owners or entrepreneurs who offer private services. The document describes how to generate an invoice or delivery note correctly.
The online invoicing service also includes:
- Automatic conversion. A payment document in an international currency, for example, in euros or US dollars, may be accompanied by a receipt of funds in national currency.
- Accumulation of the history of generated accounts.
- Blocking the amount on the customer’s or client’s bank card without instant transfer to the online store details.
- Mass generation of many payment documents, for example, regarding buyers of one product. The seller uploads customer data in one file to his personal account on the aggregator’s website. The payment system automatically generates an invoice and sends information to users.
Wrapping It Up
Electronic invoicing is suitable for online business, email marketing, and international projects. This tool allows entrepreneurs to generate payment documents and clients to pay for goods and services directly via SMS, email, or messenger. We recommend using the Rates service to track currency exchange rates in Ukraine when working with online payments. You can use the service wherever you are, in Milan, New York, or Hong Kong.