How to embed payment collection in Pandadoc documents for faster invoicing

If you've ever chased down clients for payments, you know it's the worst part of getting paid. Endless reminders, awkward emails, and “the check’s in the mail.” Embedding payment collection into your documents won’t solve all your cash flow problems, but it can make a real dent. This guide is for freelancers, agencies, and any small business using Pandadoc who wants to turn document signing into instant invoicing—without extra tech headaches.

Why bother embedding payments in your Pandadoc docs?

  • Faster payments: People are way more likely to pay when you make it frictionless. If they can pay right after signing, they often will.
  • No more awkward follow-ups: The doc does the asking for you.
  • Fewer tools to juggle: Skip switching between e-sign, invoicing, and payment apps.

But let’s be real—Pandadoc’s payment features aren’t magic. They work best if you’re already using Pandadoc for proposals, contracts, or invoices. If you live in QuickBooks or have a dedicated billing team, this might be overkill.

What you need before you start

  • A paid Pandadoc plan (the free version won’t cut it for payments)
  • An account with a supported payment processor (Stripe, PayPal, or Square)
  • Banking details handy for your payment provider
  • Your template or document ready to go (proposal, contract, invoice, etc.)

Pro tip: If you’re just testing, connect Stripe first. It’s the smoothest setup and the most flexible for different currencies and countries.

Step 1: Connect your payment provider to Pandadoc

This is where most people trip up—not because it’s hard, but because every provider has its own quirks.

  1. Go to Settings > Integrations in Pandadoc.
  2. Look for the Payments section. You’ll see Stripe, PayPal, and Square.
  3. Click “Connect” on your payment provider of choice.
  4. Follow the prompts—usually this means logging into Stripe/PayPal/Square and giving Pandadoc permission.
  5. Once connected, you’ll see the integration status update in Pandadoc.

What works: Stripe is the most reliable and has the fewest random “account not supported” errors.

What’s annoying: PayPal setup can be fussy about business account status. Square is U.S.-centric.

Ignore: If you see add-ons or “premium payment” features from Pandadoc’s own marketplace, skip them—you just need the core integration.

Step 2: Add a Payment block to your document or template

Once your payment provider is set, it’s time to actually embed the payment option in your document.

  1. Open the document or template you want to use.
  2. Drag in the “Payment” block from the right-side menu. (If you don’t see it, double-check your integration.)
  3. Drop the Payment block where it makes sense—usually at the end, near your signature fields.

Configure your payment block:

  • Payment amount: Set a fixed amount, or use a variable tied to a pricing table.
  • Currency: Make sure this matches your payment provider setup.
  • Partial payments: Decide if you’ll allow partial payments (good for deposits).
  • Who pays fees: You can’t pass Stripe/PayPal fees directly to clients in Pandadoc. Factor this into your price instead.

Pro tip: If you use pricing tables in your docs (for proposals, quotes, etc.), you can link the Payment block to the table’s total. That way, clients can’t “accidentally” pay the wrong amount.

Step 3: Set up your pricing tables (optional, but powerful)

If you just want to collect a flat payment (say, a retainer), you can skip this. But if your pricing varies by client or project, pricing tables are a big time-saver.

  1. Add a Pricing Table block to your doc or template.
  2. Fill in your line items, quantities, and rates.
  3. Make sure the table’s total is linked to your Payment block (there’s a setting for this in the Payment block’s properties).

What works: This makes it easy to generate invoices for different clients—just update the table, and the payment amount updates automatically.

What to watch out for: Don’t get fancy with discounts or taxes unless you’ve tested how they show up in your final doc. Pandadoc’s calculations are simple, and it’s easy to confuse clients if totals don’t match.

Step 4: Send your document as usual

  1. Hit “Send” in Pandadoc when you’re ready.
  2. Your client gets the document link. They fill out any fields, sign, and see the payment section at the end.
  3. They pay right there—credit card, PayPal, or whatever payment methods your provider supports.

What your client sees: After signing, they get a prompt to pay. It’s straightforward—unless their browser blocks pop-ups or they’re on some weird old device (rare, but it happens).

What you see: Payment status is tracked in the document’s activity feed. You get an email when payment lands.

Pro tip: If you need a receipt or invoice for the client, your payment provider (Stripe, PayPal, Square) handles it—not Pandadoc. Make sure you’ve customized those emails on the payment side.

Step 5: Track payments and follow up (without nagging)

Pandadoc’s payment tracking is basic, but it does the job.

  • In your document dashboard, look for payment status next to each doc.
  • You’ll see “Paid,” “Pending,” or “Not started.”
  • For anything stuck on “Pending,” a friendly nudge sometimes helps. (“Just checking you saw the payment link at the end of the doc!”)

What works: The built-in reminders are decent, but don’t expect miracles. If someone’s ignoring your doc, they’ll ignore the reminders too.

What doesn’t: Don’t rely on Pandadoc to handle all your payment follow-up. For stubborn clients, a good old-fashioned email or call still works best.

Extra setup: Automate receipts and accounting (if you care)

If you’re serious about bookkeeping, you’ll want to connect your payment provider to your accounting software. Pandadoc won’t do this for you.

  • Stripe, PayPal, and Square all have native integrations with tools like QuickBooks and Xero.
  • Set these up separately, outside Pandadoc.
  • Don’t expect Pandadoc to be your financial system of record.

Ignore: Third-party “automation” add-ons that claim to sync everything—for most small teams, it’s just more things to break.

What can go wrong—and how to fix it

  • Payment block doesn’t show up: Double-check your payment integration and that your Pandadoc plan supports payments.
  • Clients can’t pay: Sometimes company cards block Stripe/PayPal payments. Ask them to try a personal card or contact their bank.
  • Wrong payment amount: Test your doc with a tiny payment before sending to a real client.
  • Refunds: You’ll handle these directly in Stripe/PayPal/Square—not through Pandadoc.

Quick FAQ

Can I embed payment for recurring invoices?
Not directly. Pandadoc is best for one-off payments tied to a document. For subscriptions, use Stripe or another tool directly.

Can I collect ACH/bank transfers?
Stripe supports ACH, but only in certain countries and with some setup. Don’t expect it to work out-of-the-box.

Are payments secure?
As secure as Stripe, PayPal, or Square are—which is to say, yes, but you’re trusting them, not Pandadoc, with the payment data.

Keep it simple and iterate

Don’t overthink it. Start with one document or template, test the payment flow yourself, and see how it feels from the client’s side. If it works, roll it out for more docs. If it’s clunky, tweak your templates or try a different payment provider. The goal isn’t perfection—it’s getting paid faster with less hassle. Stick with what works, ignore the hype, and get back to work.