Your bill payments questions answered

Find out more about online bill payments, how it works and where to get started with answers to our FAQs.

Overview

Who is Melio?

Xero has acquired Melio, a leading US bill pay platform designed specifically for small and medium-sized businesses, and accountants and bookkeepers in the US. Melio is trusted by 100,000 businesses and accounting firms and responsible for processing billions of dollars every year.

How do online bill payments work?

It's simple! Powered by Melio, you can securely pay bills online, directly from Xero. Follow these steps.

  1. Verify your business details with Melio.
  2. Select the bills in Xero you want to pay.
  3. Select Make online payments, and Melio handles the rest.

Note: This feature is for US dollar (USD) payments within the US only. Foreign currency bills are not currently supported.

I already have a Melio account. Will my data be available in Xero?

If you're already a Melio customer, your historical supplier and payment data will not be transferred if you set up bill payments within Xero.

Note: Even if you have an existing Melio account, you'll need to re-verify your business details during the setup process in Xero. You won't be able to access your standalone Melio account from within Xero.

I already have a Melio subscription. Should I cancel it and use Xero’s bill payments in Xero?

Xero has partnered with Melio to deliver an embedded online bill payments experience for Xero customers. While both solutions enable you to pay bills online, they have different capabilities and associated costs. Ultimately, the best solution depends on your specific business needs.

Note: You don’t need to have a Melio subscription in order to use Xero bill payments. It’s free to set up and there’s no recurring subscription fees (other than what you pay for Xero) or fees for additional users. You’ll be charged payment fees based on your usage if you choose to make online payments in Xero.

Pricing and Fees

Is there a cost to pay bills?

Yes, you will be charged a payment fee by Xero when you choose to make online payments. The usage-based payment fees are separate from your Xero subscription.

All fees are in US dollars and exclude applicable taxes unless otherwise specified. Xero reserves the right to change the cost of this service from time to time.

Set up

Who can set up online bill payments?

Your Xero admin and any user who has permissions to grant permissions to other users in your Xero organization can set up online bill payments.

How do I set up online bill payments?

Getting started is simple and only takes a few steps

  1. Submit your business details for verification by Melio.
  2. Connect your bank account.
  3. You're ready to start making online payments!

What information do I need to provide Melio? Melio requires some basic details about your business (like name, address, industry, and owner information) for verification. You'll also need to provide a “protected ID” for your business - this is typically your Tax ID, EIN, or SSN, depending on your business structure.

Occasionally, Melio might need extra documentation. If that happens, they’ll send you an email with the specifics, and you’ll have 5 days to respond.

Why does Melio need this information?

Melio is a licensed money transmitter in the US. It is legally required to perform due diligence on all users to remain in line with its legal obligations and sponsoring financial institutions.

How long does the verification process take?

Many businesses are approved instantly. Some will need to provide additional information at the time of submitting their first payment; Melio will notify these customers via email, and payments will be held until Melio receives the necessary information to validate the business.

What if my verification fails?

If there are any issues, Melio will notify you via email with details on how you can appeal their decision.

Can I connect more than one bank account?

Yes. You can add multiple bank accounts in Xero as a funding source for your payments.

How do I disconnect Melio as a payment option in Xero?

To disconnect this feature from your Xero organization at any time, raise a case with Xero support.

Using online bill payments

How do I use online bill payments?

To use online bill payments follow these simple steps:

  1. Go to the bills awaiting payment screen, select the bills to pay and Make payment
  2. Select Make online payments
  3. Select the account to pay from, choose how your supplier will receive the funds (delivery method) and pick your preferred delivery date (delivery date options will vary based on the payment method you choose)
  4. Confirm and pay to process the payment

Who is responsible for processing my payments?

When you use online bill payments in Xero, your payments are processed by Melio. As part of the set up process, you’ll need to agree to Melio's Terms of Service and Privacy Policy as well as Xero’s terms of use and payments terms.

What payment methods are available when I use online bill payments?

Currently, you can only fund bill payments from your bank account.

However, you have several options for how your supplier receives their funds (the delivery method):

  • ACH and wire transfer: Melio transfers funds directly to your supplier's bank account (you’ll need their bank details).
  • Check: Melio handles mailing a physical check to your supplier.
  • Virtual card: Melio emails a single-use virtual card to your suppliers. Any business that accepts credit or debit card payments can accept this card.

Melio offers various delivery speeds, including options for same-day ACH and wire transfers, and overnight checks. Delivery speeds are based on eligibility. You will only see the options applicable to your specific payment, along with associated fees, before you confirm the payment in Xero.

Note: The ability to fund bill payments using a credit or debit card is planned to launch in 2026.

Are there limits on the amount I can pay?

Yes, there are a couple of things to keep in mind

  • Per-Bill Limit: There is a limit of $1 Million for any single bill payment processed through by Melio.
  • Bank Limits: All banks also set their own limits on how much money you can pay out each day. We recommend you check directly with your bank or financial institution to understand your specific daily limit.

How much can I pay in a single batch of bills?

The total amount you can pay in a single batch (or multiple batches on one day) will be limited by the payment limits set by your bank.

Can I group bills to a single supplier?

Yes, you can group multiple bills for the same supplier into one transaction. Just look for the option to combine payments, and your supplier will receive a single payment and reference.

Can I schedule bills to be paid later? Yes! You can easily schedule your USD bills for a future payment date. Melio will debit your bank account on the date required to meet your selected delivery date and speed. You will see the exact debit date displayed when you schedule the payment in Xero.

Is there an approval workflow? An approvals workflow is not available yet, but you can still control who can make bill payments by assigning the ‘payments’ permission to key users in your organization.

Note: The ability to delegate payment requests to others is planned to launch in 2026.

Do I need to have my suppliers in Xero?

Yes, we recommend you add suppliers (and their bank account details) as Contacts in Xero before you go to pay them.

How do I add suppliers in Xero?

New suppliers are automatically added when you enter their first bill in Xero. You can find detailed instructions on adding or editing contacts in Xero Central. To add bank account details or an email address, you'll need to click into the supplier's contact record.

Will I be able to send remittance advice?

Yes, you can still send remittance advice from a paid bill or from a bank account in Xero.

What will my suppliers see on their bank statement when I pay them?

Your suppliers will see your business name (the name of your account) and reference to Melio on their bank statement. This ensures they know exactly who the payment came from.

How do I see the status of my payments?

Check the Manage bill payments page in Xero for a clear overview and status of all your payments made using online bill payments. If a payment fails, you'll get an email notification with a link to view the status details and how to resolve the issue

When will my supplier get paid?

Processing times depend on how the payment is funded and how the supplier is paid:

Paying from a bank account

  • Delivered by standard ACH bank transfer: 2-3 business days. Any payments submitted before 9 pm ET / 6 pm PT are processed that day. Payments over $100k can take up to 4 working days.
  • Delivered by Same-day ACH transfer: Same business day. Any payments submitted before 2 pm ET / 11 am PT are processed that day.
  • Delivered by Instant ACH transfer. Within Minutes. Availability: Mon-Fri, 2 a.m. until 7 p.m. ET.
  • Delivered by Wire transfer (domestic payments): 3 business days. Any payments submitted before 9 pm ET / 6 pm PT are processed that day.
  • Delivered by Same-day Wire transfer (domestic payments): Same business day. Any payments submitted before 2 pm ET / 11 am PT are processed that day.
  • Delivered by Single-use Virtual card: Up to 3 business days
  • Delivered by Check (USPS): 5-7 business days
  • Delivered by Fast check (FedEx): 3 business days
  • Delivered by Overnight Check: 1 business day. Any payment submitted after 2 pm ET will be processed the next day.

Important: Each payment is subject to eligibility requirements and limitations. If you don’t see these payment options when making a payment, they are unavailable. All payments scheduled after the cutoff time will start processing on the following business day.

How quickly will I see the statement line in Xero?

Once the payment has been confirmed, it will be immediately available in Xero under Accounting > Account Transactions. The actual bank statement line to match and reconcile the bill payment will depend on the timing of the feed from your selected bank account.

Why did one or more of my payments fail?

If there’s an issue, Xero will display an error message on the payment status page immediately. Melio will also send you an email notification with further details.

Can I pay foreign currency bills?

At this stage, you can only make payments for bills within the US, using USD, to suppliers with a US address.

Note: international bill payments is planned to launch later in 2026.

Can I make other payments like payroll and expenses from Xero?

No, you can only use online bill payments to pay supplier bills.

Can I still use payment files?

Yes. Online bill payments is an additional alternative option. If you prefer, you can continue to pay bills using payment files.

Can I still pay a bill by check?

Yes. Online bill payments allows you to pay bills online by having Melio mail a check on your behalf. If you prefer, you can continue to manually create and print a check from Xero.

Security and Access

Is my money and data secure?

Yes, we are committed to keeping your information safe.

We provide multiple layers of protection for the personal and financial information you trust to Xero.

When you use online bill payments, two sets of terms apply:

Xero's Terms: Your use of this feature is governed by Xero’s terms of use, including our specific payments terms.

Melio's Terms (for payments): As Melio is responsible for processing the payments, Melio's Terms of Service and Privacy Policy govern how they handle your financial and transaction data to complete the payment.

We encourage you to review all applicable terms to fully understand how your data is protected throughout the entire payment process.