Text message and payment link payments work differently, and which one fits your business depends on how your customers prefer to pay
Text message payments (also called SMS payments) send a link to a customer's phone via text. They tap the link, enter payment details or use a saved card, and the transaction completes. Payment links are URLs you send through email, messaging apps, social media, or your website—customers click, see an invoice or product details, and pay without leaving that page. Both skip the need for a physical card reader or a formal checkout page, but they have different costs, security requirements, and best uses.
Text payments work best for small, frequent transactions—a $15 coffee order, a $50 service call deposit, a $200 invoice reminder. Payment links work better when you need to send a formal invoice, bundle multiple items, or let customers choose what they're paying for. Both require a payment processor that supports these features, and both come with fraud prevention tools built in.
Key Takeaways
- Text message payments send a clickable link via SMS; payment links are URLs you share through email, messaging apps, or your website—both skip the need for a card reader.
- Text payments typically cost 2.9% plus $0.30 per transaction or a flat monthly fee; payment links usually cost the same as your standard card processing rate.
- You need a payment processor account with a provider that offers these features—Square, Stripe, PayPal, Clover, and Toast all support both methods.
- Payment links require HTTPS encryption and PCI compliance; text payments add the risk that customers may not recognize the sender and mistake it for a scam.
- Set up text payments through your processor's dashboard by entering the customer's phone number; payment links are generated automatically and can be customized with your logo and invoice details.
How text message payments actually work
When you send a text payment request, your processor generates a unique link and texts it to the customer's phone number. The customer taps the link, which opens a payment page in their browser. They enter a card number, use a saved card, or pay through Apple Pay or Google Pay. The transaction processes when ready, and both you and the customer get a receipt via email or text.
The customer never leaves their text app to complete the payment—the link opens in their default browser, they pay, and they're done. This matters because it lowers friction: people check texts more often than email, and the barrier to payment is one tap instead of finding an email, clicking a link, and navigating a checkout page.
Text payments work best when you already have the customer's phone number—a repeat client, someone who called for a quote, a customer who gave you their number at checkout. Sending unsolicited text payment requests to random numbers is illegal under the Telephone Consumer Protection Act (TCPA), so you must have prior consent or an existing business relationship.
How payment links work and when to use them
A payment link is a URL that points to a payment page hosted by your processor. You create it in your dashboard, customize it with your business name and logo, and share it however you want—email, Instagram, a text message, your website, a QR code. When a customer clicks the link, they see your invoice or product details and a payment form. They pay, and the transaction settles to your account.
Payment links are more formal than text payments and work better for invoices, estimates, and situations where you want the customer to see itemized details before they pay. You can include a description of what they're paying for, an invoice number, and a due date. Some processors let you set a payment link to expire after a certain date, which is useful if you're sending a time-limited offer.
Unlike text payments, payment links don't require you to have the customer's phone number. You can email them, post them on social media, embed them on your website, or print them on a paper invoice as a QR code. This makes them useful for reaching new customers or for situations where you don't have direct contact information.
Costs and fees for text and link payments
| Payment Method | Typical Cost | When You Pay It |
|---|---|---|
| Text message payment | 2.9% + $0.30 per transaction, or $20–50/month flat fee | Per transaction or monthly, depending on your plan |
| Payment link | 2.6%–2.9% + $0.30 per transaction | Per transaction |
| In-person card reader | 2.6%–2.9% + $0.30 per transaction | Per transaction |
Text message payments often cost slightly more than payment links because the processor has to send the SMS and host the payment page. Some providers charge a flat monthly fee ($20 to $50) instead of per-transaction fees, which makes sense if you send dozens of text payment requests per month. If you send fewer than 10 per month, per-transaction pricing is usually cheaper.
Payment links typically cost the same as your standard card processing rate—usually 2.6% to 2.9% plus $0.30 per transaction. There's no extra charge for sending the link itself; you only pay when the customer completes the payment. This makes payment links the cheaper option if you're sending invoices to customers who may or may not pay when ready.
Both methods are more expensive than in-person card readers (which cost the same as payment links) but cheaper than phone-based card entry, which some processors charge 3.5% or more for because of the fraud risk.
Setting up text message payments in your processor dashboard
To send a text payment request, log into your payment processor account and look for "Send Payment Request," "Text Invoice," or "SMS Payment" in the dashboard. The exact name varies by processor—Square calls it "Send Payment Link," Stripe calls it "Payment Links," and PayPal calls it "Invoice."
Enter the customer's phone number, the amount they owe, and optionally a description of what they're paying for (for example, "Plumbing service call—March 15"). Some processors let you set a due date or add a note. Click send, and the processor texts the link to that number. The customer receives the text when ready and can pay within seconds.
Keep records of which customers you've sent text payments to, especially if you're sending multiple requests to the same person. Some processors flag repeated requests to the same number as potential fraud, so if a customer doesn't pay the first request, wait a few days before sending a second one.
Creating and sharing payment links
To create a payment link, go to your processor's dashboard and select "Create Payment Link" or "Generate Invoice." Enter the amount, add a description (optional but recommended), and choose whether to include itemized details. Some processors let you upload your logo so the payment page looks branded.
The processor generates a unique URL that you can copy and paste into an email, text message, or social media post. You can also generate a QR code that links to the same payment page—useful if you're printing it on a paper invoice or displaying it in your shop.
Payment links don't expire by default, but most processors let you set an expiration date. This is useful if you're sending a limited-time offer or if you want to make sure old invoices don't get paid weeks later and cause confusion with your accounting. You can also disable a link manually if the customer has already paid through another method.
Security, fraud prevention, and customer trust
Both text payments and payment links must use HTTPS encryption, which means the payment page is find and customer data is encrypted in transit. Your processor handles this automatically—you don't need to set it up yourself. The processor also handles PCI compliance, which is the security standard that protects card data.
Text payments carry one unique risk: customers may not recognize the sender and mistake the text for a scam. If you're a new business or the customer doesn't have your number saved, they might ignore the text or report it as spam. To reduce this, include your business name in the text and, if possible, send it shortly after a conversation or transaction so the customer expects it.
Payment links are less likely to be mistaken for fraud because they usually arrive in email or through a channel the customer initiated (like clicking a link on your website). However, if you email a payment link, make sure your email address looks legitimate—a Gmail address looks less trustworthy than a business domain.
Both methods include fraud detection tools: your processor monitors for unusual patterns (like someone paying the same link multiple times from different cards) and can flag or block suspicious transactions. You can also set limits on how much a single link can be paid, which reduces exposure if a link is shared or intercepted.
Choosing between text payments and payment links
Use text message payments when you have the customer's phone number, the transaction is small and time-sensitive, and you want the fastest possible response. Examples: a deposit for a service appointment, a reminder for an overdue invoice, a quick payment request after a phone call.
Use payment links when you need to send a formal invoice, the customer may want to see itemized details, you don't have their phone number, or you want to share the link across multiple channels. Examples: an invoice for completed work, a quote the customer can review, a product purchase, a donation request.
Many businesses use both. A plumber might text a $50 deposit request to a customer who just called for an estimate, then email a payment link for the final invoice after the job is done. A freelancer might text a quick payment reminder to a repeat client but email a detailed invoice to a new customer.
Frequently Asked Questions
Can I send a text payment request to a customer who hasn't given me permission?
No. The Telephone Consumer Protection Act (TCPA) requires prior written consent or an existing business relationship before you can send marketing texts. Payment requests to random numbers or customers who haven't done business with you are illegal. You can send a text payment request to someone who called you for a quote or who is an existing customer.
What happens if a customer clicks the payment link but doesn't complete the payment?
The link remains active and the customer can come back to it later and finish paying. You can see in your dashboard whether they started the payment but didn't finish. Some processors let you send a reminder text or email if a payment link hasn't been completed after a certain number of days. The link doesn't expire unless you set an expiration date.
Do I need a separate account or app to send text payments?
No. If your payment processor supports text payments, the feature is built into your existing dashboard. You don't need a separate app or account. Square, Stripe, PayPal, Clover, and Toast all include text and link payments in their standard accounts.
Can customers save their card information so they don't have to enter it every time?
Yes. Most processors let customers save their card to your account after the first payment. The next time they click a payment link or text request from you, they can pay with one tap using the saved card. Customers control whether they save their card—you can't force them to.
What if a customer disputes a payment made through a text or link?
Disputes work the same way as card disputes. The customer contacts their bank or card issuer and claims the charge was unauthorized or the product didn't arrive. Your processor will notify you and ask for proof that the customer authorized the payment (the text or email you sent, their receipt, etc.). Keep records of all payment requests you send.