Some collection delays are caused not by intent, but by friction. The customer wants to pay, but finding the IBAN, calculating the amount, and making a bank transfer takes time.
A payment link eliminates this friction. By clicking a single link, the customer completes the payment with their card details.
In this article, we explained how a payment link works, in which situations it is useful, and how to track it.
Table of Contents
How does a payment link work?
A link is created in the system by selecting an amount and a customer. The link redirects to the payment provider's secure page.
The customer enters their card details on that page. Card information never enters your system; this is an important detail for security.
When the payment is successful, the system is notified and a collection record is created. The current balance is updated instantly.
This is its biggest advantage: the payment comes in with the knowledge of which invoice it corresponds to. The "who is this from" question on the bank statement is eliminated; bank integration we addressed this issue in the article.
In which situations is it used?
Invoices due. When a link is added to the reminder message, the payment rate increases significantly.
Remote sales. It is a practical method for upfront collection on orders taken over the phone.
Small-amount transactions.It is useful for amounts that are not worth troubling the customer for a bank transfer.
New customers.It simplifies the process with customers you want to work with on an advance payment basis before opening a term.
Service and field operations.On-site collection can be made when the job is completed; field work order trackingsee the article.
Link generation and sending
When generating the link, the amount, customer, and related invoice, if any, are selected. When the invoice is linked, the collection automatically closes that invoice.
An expiration date must be defined. Links without an expiration date pose a security risk and create confusion when forgotten.
The delivery channel can be email, SMS, or a messaging app. The channel preferred by the customer yields the highest conversion; outreach channelsyou can check the article.
The message text must clearly state what the payment is for. An ambiguous link will not be clicked due to lack of trust.
Tracking and reminding
The status of sent links must be monitored: opened, paid, or expired?
Opened but unpaid links require special attention. The customer may have tried but could not complete it; a phone call can solve the problem.
Reminder messages can be automated. Reminders sent a few days before the due date and on the due date are the most effective.
This tracking should be read together with the accounts receivable aging report; collection risk managementsee the article.
Failed payment management
Payments are not always successful. Insufficient limits, card verification issues, or bank rejections may occur.
Failed attempts must be logged and notified to the customer. The customer often thinks the payment has gone through.
The return and cancellation scenario must also be defined. A payment received in the incorrect amount is refunded and the record is corrected.
The reverse entry approach also applies here; collection receipt we explained the correction logic in the article.
Commission and cost
Card payments carry a commission cost. This cost must be weighed against the acceleration of collections.
The financing value of a receivable collected thirty days early covers the commission in most cases. Do the math with your own figures.
If installment options are offered, the cost increases. A policy should be set defining above which amount installments will be offered.
It should not be forgotten that POS collections are subject to value dates before hitting the bank account; this delay must be factored into cash flow planning. Cash flow tracking see the article.
Payment systems and link management run within the finance module.
Protecting customer trust
Since payment links are also a method used in fraud attempts, customers approach them with justifiable caution. If this caution is not managed, click-through rates remain low.
The first rule is that the link arrives with an expected message. A payment link sent without notice raises suspicion; prior notification must be given.
The second rule is that the content of the message is clear. Which invoice, what amount, valid until which date—these three pieces of information must be included in the message.
The third rule is consistency. Payment requests should always go through the same channel and in the same format; a different method every time creates uncertainty for the customer.
A presentation aligned with corporate identity also increases trust; we discussed the role of document and communication design in the document design article.
Measuring the impact
A payment link generates a cost; therefore, its impact must be measured. Without measurement, it is unknown whether you are getting your money's worth from the commission.
The most meaningful metric is the average collection period. How much does this period shorten for customers using links compared to those who do not?
The second indicator is the conversion rate: what percentage of the sent links resulted in a payment? A low rate indicates a problem with the message content or channel preference.
Third is the change in overdue receivable amounts. Overall improvement in the aging report is the most concrete result; receivable risk management you can check out the article.
When these indicators are compared periodically, it becomes clear in which customer groups the link works; reporting side provides this breakdown.
Frequently asked questions
Are card details stored with us?
No. They are entered on the payment provider's secure page; they do not reach your system.
Can a single link cover multiple invoices?
Yes, a single link can be created for bulk collection; distribution is done on the collection receipt.
Can it also be used for dealers?
It can be used; however, commission costs for high amounts should be taken into consideration.
Can a link be added to the e-Archive invoice?
It depends on document design and provider support; document design check out the article.
The payment link is the lowest-friction way to speed up collection. For a small commission, it reduces both the collection time and the matching workload.
We recommend choosing a narrow scope when starting out. For example, sending links only for overdue invoices allows you to clearly measure the impact and keeps commission costs limited.
Check the conversion rate at the end of the first month. If more than half of the sent links result in payments, you can expand the scope; if low, first review the message content and sending channel.
Inform your customers as well. Announcing in advance that payment requests will come this way solves the trust issue from the start and increases the initial usage rate.
By consulting with the EQLEM team you can set up your payment link workflow.