What is Xero Pay with Wise?
Xero Pay with Wise is a domestic bill payment solution that enables UK small businesses to pay and manage bills through Xero. The integration with Wise gives you a seamless process to pay multiple bills, regardless of your bank, and reconcile transactions easily. It’s a more efficient way to manage the bill payment process.
When using Xero Pay with Wise, Wise (not Xero) will be processing your bill payments.
How does Xero Pay with Wise work?
To use Xero Pay with Wise, you will need to set up a Wise business account (or use an existing account). When signing up for a Wise account, you may be asked to provide supporting documentation such as personal identification in order for Wise to vet your application. Wise only supports businesses that meet its acceptable use policy, and accepts signups at its own discretion. Xero cannot guarantee that all businesses signing up for a Wise account will be accepted. Read more about whether your business is eligible to use Wise.
How will I benefit from using Xero Pay with Wise?
While you’ve always been able to enter bills in Xero and export batch payment files, we’ve made the process to pay and reconcile bills simple, fast and secure. Here are the benefits of using this feature.
- Seamless process: A standardised way to make UK bill payments, creating an easier and faster way to pay suppliers.
- Pay bills in clicks: No matter which UK bank you’re with, you can pay and reconcile multiple bills in just a few steps.
- Better visibility: See the status of payments in Xero and have confidence that suppliers have been paid on time. You can also send suppliers a remittance to notify them of payment.
- Greater accuracy: You’ll be alerted of potential errors before a bill payment is processed, reducing the risk of failed payments.
- Easy reconciliation: Regardless of how many bills are paid, you’ll be able to reconcile payments in just one click, through a single statement line in Xero.
Who can use Xero Pay with Wise?
Small businesses in the UK with a Starter, Standard or Premium subscription will be able to use Xero Pay with Wise.
To use Xero Pay with Wise, you will also need to have a Wise account. This can be either an existing account or a new business account set up through Xero during the onboarding flow.
Why do I need to have a Wise account to use Xero Pay with Wise?
Your Wise account will act as a clearing account, which stores the payment details you submit and processes the payments once the required funds are deposited. You will need to transfer funds to Wise from your preferred bank account in order for payments to be processed.
You will need to set up Wise as a new payee within your internet banking portal during your first funds transfer. For all subsequent transfers, the details should be stored by your bank and therefore only the amount to be transferred needs to be entered.
Wise is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011, Firm Reference 900507, for the issuing of electronic money.
How do I set up a Wise account to use Xero Pay with Wise?
If you don’t already have a Wise account, you will need to set one up before you can use Xero Pay with Wise. This is because Wise, and not Xero, will be processing the payments you make using Xero Pay with Wise. You can set up your Wise account through Xero during the first time you add Xero Pay with Wise to your Xero subscription.
When signing up for a Wise account you may be asked to provide supporting documentation such as personal identification in order for Wise to verify your identity and your business. The person signing up for the Wise account needs to be the owner or a director of the business – delegated access is not supported. The verification process can take up to three working days, so please factor this in when setting up Xero Pay with Wise. Wise only supports businesses that meet its acceptable use policy, and accepts signups at its own discretion. Xero cannot guarantee that all businesses signing up for a Wise account will be accepted. Read more about whether your business is eligible to use Wise and what is required to get your business verified.
Wise will not charge separately for payments made using Xero Pay with Wise.
How soon will I be set up and can start making payments?
Once you start the verification process for your new Wise account, it can take up to three working days; however, this can be sped up by providing timely and accurate information to Wise if requested. It is important to make sure you respond to any requests for additional information, so keep an eye out for emails from the Wise onboarding team (check your junk or spam folders as well).
While you’re being verified, you can process payments up to a certain limit (typically £10,000), which is a good opportunity to get familiar with the solution with an individual or small value bill. Avoid attempting to process large volumes or values of bills until you have received confirmation from Wise that your account is fully verified and ready to use.
Are there any industries which can’t use Xero Pay with Wise?
Under the Wise acceptable use policy, the following business categories are excluded from using Xero Pay with Wise:
- Adult content
- Alcohol or tobacco products
- Cannabis: products containing CBD or related services to legal marijuana trade
- Pharmaceuticals, including online pharmacies, prescription-only pharmaceutical drugs, payments for the sale of pharmaceutical products to retail customers
- Intellectual property or proprietary rights infringement
- Certain financial and other professional services, including exotic financial options, trading or exchanging of cryptocurrencies or other virtual currencies
- Money service businesses
- IPTV and VOIP services
- Individuals, entities or countries subject to international sanctions
- Weaponry, military and semi-military goods and services
- Trade of restricted and/or endangered animal species and products derived from them
- Multi-level marketing, pyramid schemes, get rich quick schemes, referral marketing
This is not an exhaustive list of excluded businesses. For further information around whether your business is eligible to use Wise, please refer to their acceptable use policy.
Will there be a cost to use Xero Pay with Wise?
Yes, there will be a monthly charge. You’ll need to choose a Xero Pay with Wise pricing plan to suit the number of bills you pay each month. Take advantage of the first month free offer* when you add a new Xero Pay with Wise pricing plan to your Xero subscription in the UK (prices in GBP and exclude VAT and any fees for additional transactions or the fees of your Xero subscription).
- £3 per month (after your first month free) for 10 payment transactions (35p for each additional transaction)
- £10 per month (after your first month free) for 40 payment transactions (25p for each additional transaction)
- £20 per month (after your first month free) for 100 payment transactions (20p for each additional transaction)
You will be invoiced for Xero Pay with Wise monthly, and see an additional charge included on your Xero invoice. Wise will not charge separately for payments made using Xero Pay with Wise. You can change (upgrade or downgrade) your Xero Pay with Wise pricing plan once a month, which will then take effect the following monthly billing cycle.
What makes up the transaction limit per month?
A payment ‘transaction’ means an individual payment or part payment of a bill that is successfully processed using Xero Pay with Wise. So one batch of 20 bills would mean 20 transactions. If you pay a bill in instalments, then each part payment will be one transaction.
A ‘transaction’ will count towards your monthly transaction limit on the date the payment is processed and completed by Wise.
Do unused transactions roll over to the next month?
Transactions can only be used within your Xero subscription month and do not roll over to the following month.
Will I get a notification if I’ve gone over my transaction limit, notifying me of the overage charge?
No. We recommend that you actively monitor your bill usage to ensure you are on the correct pricing plan.
Do the transaction bundles for Xero Pay with Wise apply to the subscriber or an organisation?
Xero Pay with Wise is associated with the organisation, meaning the monthly transaction allowance is applicable to the organisation as a whole.
Can I switch between Xero Pay with Wise pricing plans?
Yes. You can change (upgrade or downgrade) your pricing plan once per month, which will then take effect the following monthly billing cycle.
Is there a free trial period for Xero Pay with Wise?
Wise customers who add a new Xero Pay with Wise pricing plan to their Xero subscription in the UK receive their first month free*, giving you time to trial the solution to help you decide if this feature is right for your business.
What if I want to cancel Xero Pay with Wise?
If you’re the subscriber, you can cancel and remove Xero Pay with Wise from your Xero subscription at any time via these steps:
1. Click on the organisation name, select Subscription and billing.
2. Click Manage Subscription.
3. Click Change plan.
4. Unselect the checkbox to add Xero Pay with Wise.
5. Click Continue to Review & Pay.
6. Check that your billing contact and payment details are correct, then click Confirm Purchase.
When you cancel Xero Pay with Wise, it will be removed from your Xero subscription immediately.
Why do I need to pay for Xero Pay with Wise? Why isn’t it part of my subscription?
Xero Pay with Wise allows you to pay multiple bills regardless of your bank through a seamless and secure process that will save you time. However, as there are costs associated with the delivery of this feature, it would not be viable for Xero to include Xero Pay with Wise in the price of a Xero subscription.
If you don’t want to pay for Xero Pay with Wise, you can still use the manual batch payment process (that is, file download) to manage your bill payments at no additional charge.
Using Xero Pay with Wise
Which banks does Xero Pay with Wise support?
Xero Pay with Wise will work with any UK bank account that has the ability to make a bank transfer. The solution only supports local UK payments.
Does the product work for foreign currency transactions?
No, foreign currency bills aren’t supported. You will only be able to make payments for bills within the UK using GBP.
Can I make other payments through Xero Pay with Wise, such as payroll and expenses?
No, you can only make supplier bill payments at this stage.
How quickly will I see the statement line in Xero so I can reconcile it?
The accounting transaction for each batch will be available immediately on submission. The availability of the bank statement line to match and reconcile the batch will depend on the timing of the feed from your upstream bank account. Typically, this is the following business day.
I accidentally sent some payments from Xero to Wise. How can I reverse them?
If you have sent the batch to Wise using Xero Pay with Wise but haven’t yet transferred the actual funds from your internet banking account to Wise, then no money has been moved, and you can cancel the batch made in error and delete the batch in Xero.
However, if the funds have been sent through and successfully processed by Wise, you will need to contact the recipient of the funds to organise a refund. We recommend you rigorously check and confirm bank account details for suppliers to ensure the correct details are entered and saved against the supplier contact record. See Wise’s advice on this scenario for more information.
What happens if I transfer the wrong amount of money into my Wise account?
The amount of money you transfer from your internet banking portal to your Wise account for each batch needs to exactly match the total amount shown in Xero once you’ve selected the bills you want to pay. If the amount doesn’t match, then the batch will be rejected by Wise and you’ll need to try again with the correct amount.
How can I use Xero Pay with Wise if I don’t enter my bills in Xero before I pay them?
To get the most out of this solution, you need to enter your bills into Xero before you pay them. We understand that manual data entry can be tedious and time-consuming, so we recommend that you start by automating the way you get your bills into Xero with automation tools such as email to bills and apps such as Hubdoc.
Do I need to have my suppliers in Xero?
Prior to paying your bills, we recommend that you add your suppliers (including their bank account details) as contacts in Xero. This way, their details are already in the system when you go to pay them, avoiding the need to update contacts during the payment flow.
How do I add suppliers in Xero?
Take a look at Xero Central to understand how to add a new supplier as a contact in Xero. New supplier contacts are automatically added the first time you enter a bill in Xero; however, you will need to click into the supplier contact record (either from the bill or searching within your contacts) in order to add information such as their bank account details and email address.
Can I schedule my bill payments using Xero Pay with Wise?
At this stage, you are unable to schedule future bill payments from Xero using Xero Pay with Wise. Once you have transferred funds to Wise from your preferred bank account, the bill payments will be processed.
How quickly will my payments be processed by Wise? Is it instant?
Wise uses the Faster Payments Service, and as a result payments are typically processed to your suppliers in a few seconds.
Although most electronic payments sent through Faster Payments will arrive at the recipient bank on the same day, this isn’t guaranteed.
I've transferred funds to Wise; however, the payments are not processed. How do I get my funds returned?
Generally, if a payment is pending or uncompleted due to a further information request, Wise will reach out via email requesting for more information from you. In the case a payment or payments are cancelled, Wise will automatically transfer back the funds to the bank account they originated in. If there are any questions about your funds being returned, please contact Wise.
One or more of my payments have failed. Where can I find out more about why this might have happened? If there is an issue with a payment and it has not been sent from Xero to Wise for processing, where possible, Xero will display an error message with information on why the payment has failed.
If a payment fails between Wise and your supplier’s bank account, you will need to login to your Wise account to find out more.
If I pay multiple bills to the same supplier, will these be grouped into a single payment?
At this point, each bill will be processed as a separate payment, even if multiple bills are for the same supplier.
How long do I have to transfer funds for my payments?
Once you’ve sent your payments to Wise for processing, you will have 10 days to transfer funds from your bank account to Wise. If the transfer is not completed within 10 days, you will have to undo the batch then create and submit a new batch, and the expired request will be voided at Wise, so any funds sent for this batch after this point will be returned.
How much can I pay in a single batch of bills?
The amount you can pay in a single batch (or group of batches processed in one day) will be dependent on the payment limits that your bank has established for the bank account you are paying from. Read more about payment limits for each bank.
What will my supplier see on their bank statement when I make a payment using Xero Pay with Wise?
For all payments processed using Xero Pay with Wise, suppliers will see the name of your Wise account (your business name) displayed on their bank statement. This will ensure your suppliers know that you’ve made a payment to their account.
To ensure the right reference number is passed through to your supplier’s bank account for the bill payment, use the ‘Payee reference’ to enter the invoice or bill reference number provided by your supplier.
Security and access
Will everyone in my organisation have access to Xero Pay with Wise? Can I restrict access to some users?
Only users with certain access rights will be able to use Xero Pay with Wise. See this table (PDF) for a simple breakdown of user profiles and their capabilities.
There is a clear separation of duties in my business when it comes to processing and approving bill payments. Will this change using Xero Pay with Wise?
As there is a separate step that requires the controller of the business funds (typically the business owner, or a trusted party with delegated access rights) to log in to their internet banking portal to manually transfer the required funds to complete the batch payment, we believe the separation of duties is maintained, giving both advisors and their clients control over their respective responsibilities.
The payment process allows advisors (and anyone with the appropriate access rights, see above) to prepare and submit the bills to Wise, then hand over to the controller of the funds to transmit the required amount to complete the bill payment process.
My accountant or bookkeeper processes my bills. Can they use Xero Pay with Wise on my behalf?
If your advisor has delegated access to your bank account, they will be able to manually transfer the required funds to Wise to complete the payment process. We recommend reviewing your business approval processes (outside of the approval steps in Xero) to ensure you are satisfied with the level of control and oversight you have prior to bills being paid.
Will you share my information with Wise?
Yes. When you first connect your existing Wise account to Xero, or set up a new Wise account via Xero, you will be taken to a consent screen that outlines how the two platforms will connect securely in order to transmit the required information to power your bill payments. If you don’t want us to share your payments information with Wise, you won’t be able to use Xero Pay with Wise.
Is my data secure?
We’re committed to the security of your data and provide multiple layers of protection for the personal and financial information you trust to Xero. When submitting payment details through Xero Pay with Wise, the details will be securely sent to Wise via an Application Programming Interface (API).
Can I add Xero Pay with Wise to my practice organisation?
Yes. At this stage, free practice organisations will be able to use Xero Pay with Wise without charge.
I’m an accountant or bookkeeper. Can I use Xero Pay with Wise?
Savvy accountants and bookkeepers will choose financial service products that remove friction and make life easier for their small business clients. As an accountant or bookkeeper, you can prepare and submit bills for payment within Xero, and hand over to your client to fund the payments.
Xero Pay with Wise is not available on Partner Edition subscriptions at this time.
As an accountant or bookkeeper, how will Xero Pay with Wise help me and my clients?
Xero Pay with Wise is a more efficient way for you to manage your clients’ accounts payable process. By entering bills, making payments and reconciling transactions using Xero Pay with Wise, you’ll not only save time but enable a real-time view of clients’ outgoing payments to better understand their cash flow.
How do I get creator or approver access to my client’s bank account?
Different banks will have their own processes for obtaining delegated access to your client’s bank account. We recommend that your client determines if this is needed (many partners and their clients choose not to give such access to ensure separation of duties and control over the movement of funds), and if so, that your client contacts their bank to determine if and how they can set up delegated access for their advisor.
What is Wise?
Wise is a leading and trusted payments provider who have been helping businesses with their payments for many years. The team’s guiding principles are that payments should be low-cost, transparent, easy and fast, making them the perfect partner for Xero’s bill payment solution in the UK. Learn more about Wise and their story.
How does Xero Pay with Wise differ from batch payment files?
Whilst you can pay bills using batch payment files, the process can be manual, disjointed, error-prone and time-consuming. You’re required to download a batch payment file from Xero, upload it separately to your bank and check the status of the payments in your bank.
Xero Pay with Wise streamlines this process by allowing you to pay and manage bills in a more automated way. Once you’ve submitted the payment details in Xero, they are sent directly to Wise, and the bills will be automatically marked as paid in Xero. As soon as you have transferred the funds to Wise, they will process the payments to your suppliers’ bank accounts. It’s a faster and more efficient process that will save you time.
Will I still be able to use the batch payment file process?
Yes. If you prefer, the batch payments process will still be available. Find out more about batch payments.
Changes to the bank account details when transferring funds to Wise
We’ve made some changes to the details of the bank account at Wise which you use to transfer funds in order to complete a batch. Previously, the payee name was ‘Wise’; however, this will now display as the name of the profile that you entered when you set up your Wise account.
If you have previously set up and saved ‘Wise’ as a payee within your internet banking portal, you will need to log in and update the payee name as per the new details displayed on the funding screen in Xero. This is a one-time change. For all subsequent transfers, the details should be stored by your bank and therefore only the amount to be transferred and reference needs to be entered.
*Xero Pay with Wise offer terms: *Offer available until 30 September 2022 for Wise customers who add a new Xero Pay with Wise pricing plan to their Xero subscription in the UK. Offer includes the first month of your selected Xero Pay with Wise pricing plan free (not including fees for additional transactions or the fees of your Xero subscription, both of which are chargeable). Your free first month commences on the date you sign up for the offer and ends 1 calendar month after your sign up date. Once this period has ended, the standard pricing of Xero Pay with Wise will apply (£3 for 10 transactions/month + 35p per additional transaction, £10 for 40 transactions/month + 25p per additional transaction and £20 for 100 transactions/month + 20p per additional transaction). Xero reserves the right to change its pricing at any time. Offer subject to Xero's offer details.
You will need a Wise account to use Xero Pay with Wise. Wise only supports businesses that meet its acceptable use policy, and accepts signups at its own discretion. Xero can’t guarantee that all businesses signing up for a Wise account will be accepted. Read more about whether your business is eligible to use Wise.
Wise is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011, Firm Reference 900507, for the issuing of electronic money.