How to Pay an Invoice by Bank Transfer: A Step-by-Step Guide

Invoicing is a time-consuming and crucial part of a company’s operations. Small businesses process around 500 invoices¹ each month on average.

Small business owners have to consider several factors, including the convenience, cost, and available invoice payment methods. For many small businesses, paying an invoice by bank transfer is a low-cost and convenient option.

This article will show you how to make a business invoice payment by bank transfer.

Step-by-Step Guide to Paying an Invoice by Bank Transfer

Paying an invoice by bank transfer is a solid option for businesses that want to quickly pay invoices and avoid excessive fees.

This article will provide an overview of the following:

• The information you need to make the transfer
• The benefits of a bank transfer over other invoice payment methods
• How to keep track of your invoice payments
• How to ensure payments are secure

Step 1: What information is needed to pay an invoice by bank transfer?

The bank transfer process is very straightforward if you have all of the recipient’s information gathered.

Before you make a bank transfer, you will need to submit² some of the following information:

• Name and address of the recipient
• Recipient’s banking information³ (name of bank, account type, account number, routing number, etc.)
• Amount and purpose of the payment
• IBAN and SWIFT code if it is an international transfer

You can save this information to make things easier when you make future payments.

Step 2: Initiate the transfer

Once you have this information gathered, you can initiate the bank transfer. This process will depend on the bank you use and your preferences.

You have the option⁴ to make the transfer online or in person. Some popular options include visiting your bank’s branch, making a mobile payment, or using your online banking.

Once everything is ready, you can make the business invoice payment and check with your bank to confirm that the payment was successful.

Step 3: Confirm the invoice payment

Before making the payment, it is essential to confirm⁵ that all the information you submit is correct. Submitting the correct information can help you save time and build rapport with your customers.

Once the invoice is sent, it's equally important to confirm that everything went through correctly. You can verify with the recipient by emailing them to ensure that they received the payment. You can also use your online banking to confirm the payment details.

The payment can take several days, depending on your bank and the type of payment you use. If you catch errors early enough, you may be able to contact your bank to correct them. ACH transfers are generally easier⁶ to reverse, while wire transfers generally can’t be reversed.

Are There Fees for Paying Invoices by Bank Transfer?

Fees are one of the most important factors to consider when choosing an invoice payment method. You can save money on fees by using digital payment options like Wise. You can also reduce your payment fees if you complete a bank transfer instead of paying by credit card.

Bank transfers can often be one of the preferred invoice payment methods because of the lower fees. For example, companies may charge⁷ a percentage of the transaction amount and have a minimum fee depending on the payment method. Payment methods like ACH transfers can have a lower fee of around 1%. Options like credit cards may charge over 2% and have extra fees.

Although doing a bank transfer may be more time-consuming, the long-term cost savings may make up for it. Moreover, once you have all of the information gathered, it becomes much easier to send invoice payments in the future because you can save the recipients details.

How Long Does it Take to Process an Invoice Payment Using Bank Transfer?

If you use a bank transfer, it typically takes a couple of days for the payment to go through. Domestic transfers can usually take 1-3 business days⁸ to process. If you send an international transfer, it may take longer.

Some companies also offer instant transfers, but the fees are often much higher. For example, PayPal charges 1.75%⁹ for its instant transfer service. Companies may use this option in select cases when they need to speed things up.

Tips for Ensuring Secure Transactions & Avoiding Invoice Fraud

As new online invoicing payment methods grow, there has also been a wave of fraud. Merchants lost $38 billion¹⁰ to online fraud in 2023.

There are many types¹¹ of invoicing fraud that you should be aware of.

• Duplicate Invoicing: Companies may send duplicate invoices by accident or on purpose.
• Fake Invoicing: Some bad actors also send fake invoices to larger companies, hoping they will pay and not notice.
• Phishing: Some cybercriminals may use invoices as a pretext to gather sensitive information about the company.
• Overstating: Companies that send invoices may overbill by overstating hours or overcharging for services.
• Other forms of fraud: Using online banking also poses risks for companies. Companies should keep their login information secure to avoid fraud.

These are just several of the many things businesses should look out for. This is why it's important to have a dedicated finance team that can catch these errors. Following these steps can help you implement secure bank transfers and avoid fraud.

Common Invoice Payment Issues and How to Resolve Them

Invoicing errors can be time-consuming and costly, and they can also lead to reputational risks. Tools like automation may help make a difference. Rework notes that automation can help reduce invoicing errors¹² by up to 40%.

These are some common invoicing errors that you should watch out for:

• Late payments: Late payments can create confusion and even result in penalties for the sender.
• Amount errors: If you accidentally send the wrong amount to the client, it can be difficult to reverse the transfer. You may need to send another invoice to correct this amount.
• Data errors: Entering the wrong information about a company or project can also create confusion and even lead to payment errors in the future.

Best Practices for Managing Invoice Payments by Bank Transfer

Staying organized and exploring all of the available payment options can help your company more effectively manage its invoice payments.

Use invoicing software: Invoicing software can help you keep track of invoice payments and send reminders for any unpaid invoices, making sure that you pay them on time.

Exploring payment methods: It's also important to compare the costs and convenience of each payment method. Visiting a branch every time you make an invoice payment is unrealistic for most people. There are plenty of online tools that can help you make quick and secure invoice payments.

Security: You can also improve your payment security by keeping payment information confidential and choosing secure software and online banking options. As always, it is important to be vigilant and on the lookout for scams. Bad actors may pose as your financial institution or even send you fake invoices.

Wise Business: Save Time and Money on Invoice Payments

Wise Business is an excellent tool for many small businesses, particularly ones that make international payments. Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies. You can also send money to 140+ countries.

If you make invoice payments in multiple countries, Wise can be a helpful tool for your business. You can use your Wise account to send payments around the world with ease.

Open a Wise Business account online

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Wise is an excellent resource for small businesses with an international presence. You'll always get the mid-market rate The one you see on Google), ensuring that small businesses don’t incur unnecessary fees on invoice payments. You can also use the free invoicing tool from Wise to create your own professional invoices.

Check out Wise today to learn how it can help you with invoice management. There is no monthly account fee, and it's easy to set up an account online.

Sources

1. Top 45 Invoice Statistics Every Business Must Know - InvoPilot
2. What Information is Needed for a Wire Transfer? Full Guide - Wise
3. The Ultimate Guide to ACH Transfers | CompareRemit
4. How to pay an invoice by bank transfer? | Crezco
5. How to Verify an Invoice: Step-by-Step Guide for Businesses
6. A simple guide to ACH vs. wire transfers: 9 key differences | PayPal US
7. Whats the fee for a customer to pay via bank transfer
8. How long do bank transfers take
9. PayPal Instant Transfer: Fees, Limits, and How It Works
10. Why Online Payments Fraud Continues to Grow - PaymentsJournal
11. 5 Types of Invoice Fraud and How to Prevent Them - CyberExperts.com
12. 17 statistics showing the hidden cost of invoice errors and rework
    All sources checked September 2025