How to Use PayPal to Charge a Commission


Internet banking is a growing trend in this online age in which we live. PayPal has revolutionized the way in which small businesses, independent contractors and freelancers can send and receive payments. A PayPal account allows you to email invoices for your commissions and accept bank or credit card payments in a secure environment. According to the PayPal website, the company adheres to international standards for protecting your data and the data of your clients or customers. Knowing how to use PayPal to submit your commission invoices can save you time and make it simple for your clients to pay you.

  • Register with PayPal. Sign up on the PayPal website with a valid email address and a password. Enter your bank account information to link your bank account to your PayPal account. It will take several days for PayPal to verify your information, after which you will be ready to go.

  • Create an invoice. From your account homepage, click the tab “Request Money.” Then, right below that tab, click “Create an Invoice.” From here you can use any saved invoice templates that you have created to make a new invoice or start from scratch using “New Invoice.” Choose the desired option and click “Continue.”

  • Fill out the invoice. You will see your name and then options for your address and phone number. Type your recipient’s email address into the appropriate box. Under “Invoice Details” you will be able to choose the type of currency and the type of invoice (i.e., “Goods” or “Service”). Since you are creating the invoice to charge for your commission, select “Service.” Enter the email subject line and an optional note to the recipient.

  • Enter the price and description of your services. For example, if you earn $10 in commission for every encyclopedia that you sell and you sold 100 encyclopedias, you would enter “100” under quantity. The description could be given as something like “Encyclopedia sales commission,” and the unit price would be $10. Once you’ve filled in all of the information, PayPal will calculate the total amount being invoiced. Depending on how much detail your client requires, you could just list the quantity as “1,” the description as “Commission for the month of X” and the amount that you are charging.

  • Click “Continue” and preview your invoice. Double-check your spelling and make sure your amounts are correct. If you need to make changes, you can click “Edit”; otherwise, click “Send Invoice.”

Tips & Warnings

  • When you send an invoice for your commission through PayPal, your client will receive an email with your invoice and instructions on how to complete the transaction.

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  • Photo Credit Sean Gallup/Getty Images News/Getty Images
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