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Payments update: Xero and Stripe offer first-class payment experience from setup through reconciliation

Posted 8 months ago in Product by Anne Dehmer
Posted by Anne Dehmer

Here at Xero we know that cash flow is a top priority for all small businesses, so we look for any opportunity to get you paid faster and more easily. Offering an online payment option to your customers is an easy first step.

If you don’t yet accept credit card payments for your online invoices, you’ll be able to set this up with Stripe in just a few clicks.


When you send your customer an online invoice through Xero, they’ll immediately be able to pay with their preferred credit or debit card.


Getting paid isn’t the end of the road for a business, though. Reconciling your bank statements can be a pain, so Xero has created a best-in-class experience for our Stripe users.

Last year Xero began automating your Stripe fees. What remained was still a largely manual process to reconcile your Stripe payouts. We know how arduous a task it is to log into Stripe, identify the payments batched together in the statement line, use bank rec’s find & match to search for all the payments, search for all the fees, and then finally click OK to reconcile.

Automated Stripe reconciliation

So we’re proud to announce our roll out of automated Stripe reconciliation!

When a Stripe payout comes in through your bank feed, Xero will do the matching work for you. All the transactions in Xero tied to the Stripe statement line will be automatically matched against it. Say goodbye to tracking down a ton of payments and fees included in a daily, weekly or monthly Stripe payout.

A perfect match can be reconciled in one click within Xero.


If there is a difference between the payout amount from Stripe and the total found in Xero, Xero will still find all the relevant transactions and bring them back as a partial match.


Please see our Stripe reconciliation help page for reasons why some Stripe payouts may not reflect a full match in Xero.

Our goal is to make getting paid with Stripe as smooth an experience as possible. So that you can spend less time chasing payment on outstanding invoices and more your time on your business. We’re working hard to bring you even more features this year to improve your cashflow. Stay tuned!


Dave Quested
July 13, 2017 at 9.26 pm

Does this handle payouts which consist of Xero invoices with different currencies?

Dave Quested
July 13, 2017 at 9.27 pm

Also, are you considering adding Stripe as a proper bank feed (separated by currency), like you do for PayPal. Would make matching Stripe payments to Xero invoices so much easier. Especially for businesses working in different currencies.

Anne Dehmer
July 20, 2017 at 6.18 am

Hi Dave,

Stripe doesn’t operate as a sort of bank in the way that PayPal does, so we won’t be building a bank feed for it.

Payments made via Stripe through Xero online invoices will be automatically matched to their corresponding Stripe payout. This will work even if the invoices that have been paid are in different currencies.


February 21, 2018 at 11.47 pm

I would disagree with this comment as Stripe holds funds and it now even has a balance which makes it a bank account same as PayPal its considered.

The mere existence of many paid for “solutions” and a few frustrated customers blog/articles indicate that there is a problem which is being exploited out of Xero’s lack of contact with customer requirements.


Paid for Solutions

Why should we pay for connectors for what is supposed to be a state of the art cloud accounting system?

Just a friendly reminder, Kashflow had stripe as an option to pay invoices since 2010. There is nothing innovating about that and that is not what customers have been asking for.

PayPal does work as a Stripe should, why not enabling this conversation ?

Should we perhaps start looking into different avenues and explore accounting systems where the voice of the customer doesn’t take years of forum grunting to be heard?

surely when Stripe has open API development this should be a couple of days of work for Xero’s development team to map a and extract a few fields.

Ashley Blood
July 21, 2017 at 7.35 am

I would still love to see an option to have stripe set up as a bank account like PayPal. I have several clients who have ecommerce businesses that do not invoice through Xero. I have to manually import data from Stripe to capture sales tax and fee info. This update does nothing to help that large group of Xero users.

Roger King
July 30, 2017 at 5.45 pm

+1 for treating Stripe like a Bank Account. There are two reasons for doing this as I see it:
1) If you put the customer payment and fees into the bank account where the payout from Stripe is going to occur 8days later then you bank account is always going to be out of balance until that payout occurs – and since we could be taking payments every day then the bank account is never going to be balance. No business can operate that way. We like to try and balance up every day to make sure non of our automated feed transactions has gone astray.
2) Since Stripe are holding your money then they are holding a company asset. For year end purposes we need to have that money showing in the balance sheet.

I don’t think it needs to be an automated feed – we just need the payout from Stripe to result in an automated transfer of the same amount from the Stripe bank account where they customer payments are being applied.

Roger King
July 30, 2017 at 5.52 pm

I’m hoping the automated transfer feature that is meant to be coming soon will allow me to address my last point – will it. BTW – where is it? Its now more than a month after it was meant to land. Also – sorry for the typos in the original post!

August 3, 2017 at 6.48 am

Needs to be like a bank feed. Sorry but the update is useless for 90% of users.

February 21, 2018 at 11.49 pm

Agreed 100%. Xero are selling as innovation a feature that dying Kashflow had since 2010.

Playing deaf on the many many requests to make Stripe bank feed to work as PayPal does.

Kashflow did this ignore game and guess where they are going now…

August 3, 2017 at 7.15 am

This is great. Thank you!

Are there any plans to add support for Stripe’s auto-billing feature for recurring invoices? We have many clients who pay monthly and would like to enter their credit card once and have the balance be paid automatically going forward.

This feature would be incredibly helpful and would allow us to get away from FreshBooks.

August 7, 2017 at 10.01 pm

When are you going to add ACH payment through stripe to cut our fees by 75%?

August 10, 2017 at 9.58 pm

Needs to be a bank feed sorry. In multiple currencies. Just like your paypal feeds. Why do you (xero) always say Stripe is not like a bank account when clearly it is. Money comes in, fees go out and thr balance is transferred to a local bank account. Please explain

Michael Maccaroni
August 11, 2017 at 12.38 am

This is a good improvement. As Lyle said, ACH needs to be a priority. I’m sure we’re not alone in having this be the one factor preventing us from migrating certain clients from QBO.

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