You need to mark that invoice as paid, and account for the merchant fee. You now have an outstanding invoice for $100. If your bank account is connected to Wave, or you have uploaded a bank statement, you have already imported the transaction for $97.

If PayPal deducts $3 in merchant fees, you receive a deposit of $97 in your bank account. Say for example, you send an invoice to your customer for $100, and they pay through PayPal. You can create an invoice in a few minutes, and your customers can pay. Learn about automated bookkeeping with Wave Payments. Wave is easy to use, even for people who are unfamiliar with accounting or bookkeeping. You shouldn’t have to dispute the invoice, but if it does show up in your account due to your email being connected, you can visit. If you process payments with Wave Payments, Wave takes care of the bookkeeping automatically. To report the email, PayPal encourages user to forward suspicious emails to, where their security experts can determine if it’s a fake and get the source of the email shut down, if needed. You're then left with the net amount in your Wave account, and a fee you need to account for. WaveApps is an alternative for clients who prefer a direct credit card invoice, or if you prefer to take direct credit card payments rather than routing clients through PayPal. The client receiving your invoice through PayPal can pay it using a credit card. Most third-party payment processors deduct transaction fees (also known as merchant fees) from the gross payments made by your customers. If youre sending PayPal invoices, you dont need to use WaveApps. But you can with Xero and it does it nicely. You can find more information on 1099-K forms on the IRS website: Understanding your Form 1099-K. To date, you still can’t accept payments via PayPal with Wave.

As of January 2022, the IRS requires third-party payment processors (for example, Wave, Stripe, Square, and PayPal), online marketplaces (Amazon, eBay, Etsy, etc.), and credit card companies to provide a Form 1099-K to all businesses who process over $600 in 2022.

Wave invoices with paypal