Changes to the bank account details when transferring funds to TransferWise
We’ve made some changes to the details of the bank account at TransferWise which you use to transfer funds in order to complete a batch. Previously the payee name was “TransferWise”, however this will now display as the name of the profile that you entered when you set up your TransferWise account.
If you have previously set up and saved “TransferWise” as a payee within your Internet Banking portal, you will need to login and 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.
What will my supplier see on their bank statement when I make a payment using Pay with TransferWise?
In addition to the above change, for all payments processed using Pay with TransferWise, suppliers will now see the name of your TransferWise account (your business name) displayed on their bank statement, instead of just “TransferWise”. This change 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/bill reference number provided by your supplier.
FAQs - Overview
Pay with TransferWise is a domestic bill payment solution that enables UK small businesses to pay and manage bills through Xero. The integration with TransferWise 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 Pay with TransferWise, TransferWise (not Xero) will be processing your bill payments.
Watch this video to understand how bill payments are processed.
To use Pay with TransferWise, you will need to set up a TransferWise business account (or use an existing account). When signing up for a TransferWise account you may be asked to provide supporting documentation such as personal identification in order for TransferWise to vet your application. TransferWise only supports businesses that meet its acceptable use policy, and accepts sign-ups at its own discretion. Xero cannot guarantee that all businesses signing up for a TransferWise account will be accepted. Read more about whether your business is eligible to use TransferWise here.
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. The benefits of using this feature include:
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.
Small businesses in the UK with a Starter, Standard or Premium subscription will be able to use Pay with TransferWise.
To use Pay with TransferWise, you will also need to have a TransferWise account. This can be either an existing account, or a new business account set up through Xero during the onboarding flow.
Your TransferWise 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 TransferWise from your preferred bank account in order for payments to be processed.
You will need to set up TransferWise 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.
TransferWise is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011, Firm Reference 900507, for the issuing of electronic money.
If you don’t already have a TransferWise account, you will need to set one up before you can use Pay with TransferWise. This is because TransferWise, and not Xero, will be processing the payments you make using Pay with TransferWise. You can set up your TransferWise account through Xero, the first time you add Pay with TransferWise to your Xero subscription.
When signing up for a TransferWise account you may be asked to provide supporting documentation such as personal identification in order for TransferWise to verify your identity and your business. The person signing up for the TransferWise 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 Pay with TransferWise. TransferWise only supports businesses that meet its acceptable use policy, and accepts sign-ups at its own discretion. Xero cannot guarantee that all businesses signing up for a TransferWise account will be accepted. Read more about whether your business is eligible to use TransferWise here.
TransferWise will not charge separately for payments made using Pay with TransferWise.
Yes, there will be a monthly charge. You’ll need to choose a pricing plan to suit the number of bills you pay each month. Take advantage of 50% off for the first three months* when you add Pay with TransferWise to your Xero subscription (prices in GBP and exclude VAT).
£1.50 per month (£3 per month after your first three months) for 10 payment transactions (35p for each additional transaction)
£5 per month (£10 per month after your first three months) for 40 payment transactions (25p for each additional transaction)
£10 per month (£20 per month after your first three months) for 100 payment transactions (20p for each additional transaction)
You will be invoiced for Pay with TransferWise monthly, and see an additional charge included on your Xero invoice. TransferWise will not charge separately for payments made using Pay with TransferWise. You can change (upgrade or downgrade) your pricing plan once a month, which will then take effect the following monthly billing cycle.
A payment ‘transaction’ means an individual payment or part payment of a bill that is successfully processed using Pay with TransferWise. 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 TransferWise.
Transactions can only be used within your Xero subscription month and do not roll over to the following month.
No, we recommend that you actively monitor your bill usage to ensure you are on the correct pricing plan.
Pay with TransferWise is associated with the organisation, meaning the monthly transaction allowance is applicable to the organisation as a whole.
Yes. You can change (upgrade or downgrade) your pricing plan once per month, which will then take effect the following monthly billing cycle.
No, there is no free trial period for Pay with TransferWise, however we are offering 50% off the cost of each plan for the first three months when you add Pay with TransferWise to your Xero subscription.* This video also explains how bill payments are set up and processed using Pay with TransferWise, and is designed to help you decide if this feature is right for your business.
If you’re the subscriber, you can cancel and remove Pay with TransferWise from your Xero subscription at any time via these steps:
Click on the organisation name, select Subscription and billing.
Click Manage Subscription.
Click Change plan.
Unselect the checkbox to add Pay with Transferwise
Click Continue to Review & Pay.
Check that your billing contact and payment details are correct, then click Confirm Purchase.
When you cancel Pay with TransferWise, it will be removed from your Xero subscription immediately.
Pay with TransferWise 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 Pay with TransferWise in the price of a Xero subscription.
If you don’t want to pay for Pay with TransferWise, you can still use the manual batch payment process (i.e. file download) to manage your bill payments at no additional charge.
Using Pay with TransferWise
Pay with TransferWise will work with any UK bank account that has the ability to make a bank transfer. The solution only supports local UK payments.
No, foreign currency bills aren’t supported. You will only be able to make payments for bills within the UK using GBP.
No, you can only make supplier bill payments at this stage
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.
If you have sent the batch to TransferWise using Pay with TransferWise, but haven’t yet transferred the actual funds from your internet banking account to TransferWise, 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 TransferWise, 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 TransferWise’s advice on this scenario for more information.
The amount of money you transfer from your internet banking portal to your TransferWise 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 TransferWise and you’ll need to try again with the correct amount.
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.
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.
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.
At this stage you are unable to schedule future bill payments from Xero using Pay with TransferWise. Once you have transferred funds to TransferWise from your preferred bank account, the bill payments will be processed.
TransferWise 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.
If there is an issue with a payment and it has not been sent from Xero to TransferWise for processing, where possible, Xero will display an error message with information on why the payment has failed.
If a payment fails between TransferWise and your supplier’s bank account, you will need to login to your TransferWise account to find out more.
At this point each bill will be processed as a separate payment, even if multiple bills are for the same supplier.
Once you’ve sent your payments to TransferWise for processing, you will have 5 days to transfer funds from your bank account to Transferwise. If the transfer is not completed within 5 days you will have to undo the batch then create and submit a new batch, and the expired request will be voided at TransferWise so any funds are sent for this batch after this point will be returned.
The amount that 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. For more detail on payment limits for each bank, please refer to this link.
Security and access
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 login 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 TransferWise, then hand over to the controller of the funds to transmit the required amount to complete the bill payment process.
If your advisor has delegated access to your bank account they will be able to manually transfer the required funds to TransferWise 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.
Yes, when you first connect your existing TransferWise account to Xero, or set up a new TransferWise 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 TransferWise, you won’t be able to use Pay with TransferWise.
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 Pay with TransferWise, the details will be securely sent to TransferWise via an Application Programming Interface (API).
You can read more about the measures we take to protect and secure data on our security page. Our privacy notice also sets out how we process your own personal data that you enter into Xero, like your name and email address.
Yes, at this stage free practice organisations will be able to use Pay with TransferWise without charge.
Savvy accountants and bookkeepers will choose financial services 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 handover to your client to fund the payments.
Pay with TransferWise is not available on Partner Edition subscriptions at this time.
Pay with TransferWise is a more efficient way for you to manage your clients’ accounts payable process. By entering bills, making payments and reconciling transactions using Pay with TransferWise, you’ll not only save time but enable a real-time view of clients’ outgoing payments to better understand their cash flow.
Different banks will have their own processes for obtaining delegated access to your client’s bank account. We recommend a) 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 b) that your client contacts their bank to determine if and how they can set up delegated access for their advisor.
TransferWise 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 TransferWise and their story here.
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.
Pay with TransferWise 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 TransferWise, and the bills will be automatically marked as paid in Xero. As soon as you have transferred the funds to TransferWise, they will process the payments to your suppliers' bank accounts. It’s a faster and more efficient process that will save you time.
*Pay with TransferWise offer terms: Add Pay with TransferWise by 31 March 2021 and get 50% off the price of your selected pricing plan (not including fees for additional transactions) for the first three months. Once this period has ended, standard pricing will apply. Offer subject to Xero's offer details and is not available with the Starter Business Edition pricing plan.
You will need a TransferWise account to use Pay with TransferWise. TransferWise only supports businesses that meet its acceptable use policy, and accepts sign-ups at its own discretion. Xero can't guarantee that all businesses signing up for a TransferWise account will be accepted. Read more about whether your business is eligible to use TransferWise here.
TransferWise is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011, Firm Reference 900507, for the issuing of electronic money.