Replace 2/15/24: Tons of payees that folks had been utilizing bought eliminated yesterday from the Paypal Invoice Pay system.

Replace 2/9/23: A number of Reddit stories (1, 2) speak about a problem whereby Paypal modifications the fee technique after the very fact to your financial institution. YMMV

Replace 1/16/23: lots of people are experiencing very delayed funds, myself included, so use this feature with warning.

Authentic Put up:

Typically there are issues staring us within the face that we simply don’t discover. I discovered this week about Paypal Invoice Pay. (Possibly everybody already is aware of about this?)

Paypal Invoice Pay permits paying utilities, insurance coverage, cellphone payments and extra straight out of your Paypal account with all the common fee strategies allowed by Paypal. Distributors discovered within the Paypal Invoice Pay system might be paid through ACH financial institution fee.

Most insurance coverage firms and utilities doubtless permit direct bank card funds, so this invoice pay system won’t be helpful for most individuals since you may pay with a bank card, regardless.

For years I’ve been paying a big month-to-month insurance coverage invoice with financial institution ACH fee since they don’t permit card funds. This week, I added the invoice to Paypal Invoice Pay and despatched a $1 fee with my saved bank card because the fee technique. Two days later the fee is being mirrored on my insurance coverage firm steadiness.

You can even pay bank card and mortgage payments with Paypal Invoice Pay, however for these you may solely use financial institution or Paypal steadiness because the fee technique.

Potential makes use of of Paypal Invoice Pay:

• Payments comparable to insurances or utilities sometimes gained’t settle for bank card funds. Or they could cost a charge for card fee or they gained’t settle for AmEx playing cards or Visa present playing cards. These is perhaps payable with Paypal Invoice Pay.
• Paypal is typically a bonus class on varied playing cards, and Paypal Invoice Pay is a pleasant approach to make use of them.

A number of notes:

1. Paypal doesn’t seem to permit splitting payments throughout a number of playing cards when utilizing their Invoice Pay service.
2. There’s a message on the fee display that your Paypal steadiness is at all times used first. Be sure you switch out any Paypal steadiness earlier than making a fee if you’d like the fee to cost your card.
3. Random fascinating tidbit FWIW: I see that the class of the invoice carries by way of to the cardboard issuer when utilizing Paypal Invoice Pay. My insurance coverage invoice fee is displaying “Service provider kind – Insurance coverage gross sales, underwriting and premiums.”
4. Be sure you double examine your fee technique – there are numerous stories of Paypal switching the fee technique afterward, see this Reddit thread.

Hat tip thefrugaltourist