One of our biggest goals at Xero is to make sure small businesses are getting paid as quickly as possible. It’s why we’re excited to announce today that Xero customers are now able to accept Automated Clearing House (ACH) bank transfers via our integration with Stripe.
The announcement marks the next phase of our partnership with Stripe. The new feature gives our customers even more ways to get paid efficiently while keeping sensitive information safe, says Cristina Cordova, Head of Business Development at Stripe.
“While ACH is one of the most efficient payment methods for businesses, it has been a traditionally cumbersome option to set up,” Cristina explains. “We’re thrilled to partner with Xero to make this payment method easily available to the millions of subscribers that rely on its software.”
A great setup experience
Enabling ACH in Xero is easy: from within Payment Services settings, log in to your Stripe account to connect Stripe ACH bank transfers as a payment gateway. You can then connect this to an invoice theme, which will enable the “Pay Now” button on the invoices you send to their customers.
When the recipient of that invoice makes a payment with ACH, Stripe will generate and display unique bank account details for that specific invoice, keeping the sender’s bank details private. The recipient will then log into the bank of their choice, where they can initiate ACH payment using the bank details provided on the invoice.
Once the ACH payment has cleared, the money will be received into your Stripe account, and the invoice will be automatically marked as paid. When Stripe transfers the money into your bank account, Xero will match the payment and processing fee to the statement line for easy reconciliation.
At Xero, we’re always looking for ways to provide a best-in-class payments experience for our customers. Watch this space for more on our partnership with Stripe!