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ACH payments now available through Stripe

Posted 6 years ago in Xero news by Craig Walker
Posted by Craig Walker

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!


February 13, 2018 at 11.27 am

This is great, but Strip still charges a 1.5% fee (up t $25) but when connecting this service in the payment services there is no option for charging a processing fee like there is with a Stripe credit card payment.

This needs to be fixed!

Aaron Angel
February 24, 2018 at 2.47 am

You may want to specify the location, as pricing can vary, along with cultural expectations. In the U.S., you’d be hard-pressed to find a small business that let’s you do ACH anyway, let alone one that would charge you for the convenience. The price is also much cheaper.

Stripe currently lists 0.80% up to $5 for ACH payments in the U.S. I’ve no need or desire to pass that cost on; it encourages faster, more secure payments, provides better tracking, and beats our current process which entails driving to the mailbox, handing checks off to someone else to manually record them, then driving to the bank to make a deposit.

April 6, 2018 at 11.39 am

Does this work for Canadian clients?

Craig Walker in reply to Ryan
April 10, 2018 at 1.07 am

@Ryan Currently not – but we’re looking at launching something at some point in the near future.

Charles Williams in reply to Craig Walker
June 16, 2018 at 8.35 am

@Craig can you please respond to Bill F’s question below too.
I had the same question about the difference in stated fees.
Thank you

Bill F
April 13, 2018 at 11.40 am

Stripe currently lists ACH fees as 0.8% capped at $5 but in Xero it’s listed as 1.5% capped at $25. Is there an inaccuracy between the 2 or is this a new line of business for Xero where you’re participating in the transaction fee?

If you are participating in the transaction fee, is the 1.5% in addition to the 0.8% capped at $5 that Stripe is charging or is this fee rolled into one that you’re splitting on the back end with Stripe?

May 2, 2018 at 2.27 am

Hey Guys – any plans for Stripe to be supporting ACH in Australia soon?

May 15, 2018 at 11.29 am

You do realise the USA is not the whole world, right? Please mention where this does and does not work.

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