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 BILL?
BILL is a leading provider of cloud-based software that simplifies, digitizes, and automates back-office financial processes for small and mid-sized businesses. Xero has partnered with BILL to deliver online bill payments in the US.
How does online bill payments work?
Powered by BILL, online bill payments enables US businesses and their advisors to make secure vendor payments directly from Xero. Once online bill payments is set up in Xero, simply select the bills you want to pay and use the BILL payment option. Follow these steps for further help on making a bill payment.
You will only be able to make bill payments within the US using USD. Foreign currency bills are not currently supported.
Pricing and fees
Will there be a cost to pay bills?
During the beta program, you won’t have to pay any additional fees to use online bill payments (beyond what you already pay for your Xero subscription).
Once the beta program concludes, there will be fees associated to continue using this payment option. Xero will notify you by email towards the end of the beta program with details of the fees and how to opt out if you do not wish to continue using the experience.
Set up
How do I set up online bill payments?
To set up online bill payments simply get started in Xero, then BILL will be available as an additional payment option. For help on the set up process follow these steps.
What information do I need to provide for verification by BILL?
In order to set up online bill payments you will be required to provide information about your business such as business name, address, industry, owner, etc. for verification by BILL. You will also be required to provide a “protected id” for your business - this could be the tax ID for the business, your EIN, or your SSN depending on the type of business.
In some instances, BILL may require additional supporting documentation about your business. If this occurs you will receive an email from BILL and have 5 days to respond. BILL will advise what additional information you need to provide in order to meet their regulatory requirements.
Why does BILL need this information?
BILL is a licensed money transmitter in the United States, and therefore, needs to perform certain due diligence on its users to remain in line with its legal obligations and sponsoring financial institutions.
What happens if my KYC/KYB is not successful and fails?
If there are any issues, BILL will notify you via email which will contain details about how to appeal your case with BILL.
How long will the verification process take, when will I be able to use online bill payments?
Many businesses are approved instantly. Some customers will need to provide additional information at the time of submitting their first payment; BILL will notify these customers via email and payments will be held until BILL receives the necessary info to validate the business.
I’m not able to add my bank account to complete the set up process, what do I need to do?
Navigate back to here and try again.
How do I opt out of the beta program?
If you no longer wish to be part of the bill payments beta program, please contact Xero Support.
Using online bill payments
How do I use online bill payments?
For step-by-step information on making a payment visit Xero Central.
Who is responsible for processing my payments?
Xero has partnered with BILL LLC, a payment institution that is an authorized money transmission service provider. If you set up online bill payments in Xero, as part of the process, you will be set up as a direct customer of BILL and will agree to be bound by BILL’s General Terms of Service (including BILL’s Acceptable Use Policy and Privacy Notice, together with any other terms and conditions incorporated by reference). As these terms and conditions will apply to your use of the online bill payments feature in Xero, it's important for you to read and understand them. BILL’s terms and conditions are in addition to Xero's Terms of Use and Privacy Policy that continue to apply to your use of Xero’s services generally.
What payment methods are available when I use BILL?
During the beta program you will be able to fund bill payments from your bank account.
Similarly, your vendor will receive their money into their bank account via an ACH disbursement if you have entered their bank details in Xero. If you don’t know your vendor’s bank details (you only know their address), then BILL will mail them a check. If your vendor exists in the BILL vendor network, they may opt to receive their money via ePayment methods such as ACH, RPPS (Remote Payment and Presentment Service), virtual card, or a digital wallet.
Note: Given disbursement methods are determined by vendor preference, they will simply be reflected as an ePayment in Xero.
Additional payment methods will be available when this feature is officially released.
Are there limits on the amount of money I can pay out per day?
All banks cap the amount you can pay each day. We recommend checking with your bank or financial institution to better understand any limits.
How much can I pay in a single batch of bills?
The number of bills you can select to pay in a batch is limited to 200 bills per batch. However 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 of your bank.
Can I group all my bills owing to a single supplier?
At this stage you’re unable to group bills owing so each supplier receives a single payment and reference for a group of bills.
Can I schedule my bill payments?
At this stage you’re unable to schedule future bill payments.
Do I need to have my vendors in Xero?
Prior to paying your bills, we recommend that you add your vendors (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 learn how to add a new vendor as a Contact in Xero.
How do I add vendors in Xero?
Take a look at Xero Central to understand how to add a new vendor as a Contact in Xero. New contacts are automatically added the first time you enter a bill in Xero. However, you’ll 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.
Will I be able to send remittance advice?
Yes, you can still send remittance advice from a paid bill, and you can also do so from a bank account. However, BILL will automatically issue a remittance advice on your behalf.
What will my vendors see on their bank statement when I make a payment?
For all payments processed, vendors will see the name of your account (your business name) displayed on their bank statement. This will ensure your vendors know that you’ve made a payment to their account.
How do I see the status of my payments?
Once you pay a bill or batch of bills, you will be able to check the status and see an overview of all bill payments made using online bill payments in Xero. If any of your bill payments fail, you will receive an email notification with a link to view the status. You can also review the bank account transactions in Xero.
How quickly will I see the statement line in Xero, so I can reconcile it?
Once the batch payment is approved, it will be available to view on the account transaction. The availability of the bank statement line to match and reconcile the batch will depend on the timing of the feed from your selected bank account.
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, Xero will display an error message (at the time the payment has been made). You will also receive an email notification.
Can I pay foreign currency bills?
At this stage foreign currency bill payments aren’t supported. You’ll only be able to make payments for bills within the United States using USD to vendors with a US address.
Can I make other payments such as payroll and expenses?
At this stage you can only make vendor bill payments.
Will I still be able to use payment files?
Yes, online bill payments is an additional alternative bill payment option, if you prefer, you can continue to pay bills using payment files.
Partners
Can I use this feature on behalf of my clients?
Yes, as an accountant or bookkeeper, you’re able to prepare and submit bills for payment within Xero, then handover to your client to review and authorize the payments.
Can I use online bill payments for my own Practice?
Yes, you can set up online bill payments in Xero for your own Practice.
Security and access
Is my money and 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. 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.