Courtesy of: Xero
Xero has expanded a major enhancement of their partnership with Stripe, that enables Xero users to accept Automated Clearing House (ACH) bank transfers via this new level of integration. The availability of ACH payments means that more than 1.2 million Xero users have yet another way to get paid quickly, safely and securely.
“Our ultimate goal at Xero is to make sure small businesses are getting paid as quickly as possible, while making the experience from set up to reconciliation seamless,” said Craig Walker, Chief Technology Officer at Xero. “Building on our partnership with Stripe, this new feature gives our customers even more ways to get paid efficiently while keeping sensitive information safe.”
Enabling ACH in Xero is easy: from within Payment Services settings, Xero customers can login to their Stripe account to connect Stripe ACH bank transfers as a payment gateway. Just follow these simple steps:
1) In the Settings menu, select General Settings.
2) Under Connect, click Payment Services.
3) Click Add Payment Service, add Stripe if not already set-up with Stripe, and complete you Stripe set-up.
Stripe sign-up in Xero 2
4) Select Stripe ACH Credit Transfer.
5) Enter a name to display in Xero.
6) Select the Payment (bank) Account to deposit the payment in.
Stripe ACH Setup in Xero
7) Under Fees Account, select the same fees account you used when you added Stripe as a payment service in Xero. Otherwise, select Add account, check the Stripe fees expense account details that Xero has entered, and click Save.
8) Click Connect to Stripe.
Xero users can then connect Stripe ACH capabilities to an invoice theme, which will enable the “Pay Now” button on the invoices they 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 the Xero customer’s Stripe account, and the invoice will be automatically marked as paid. When Stripe transfers the money into the Xero customer’s bank account, Xero will match the payment and processing fee to the statement line for easy reconciliation.
“While ACH is one of the most efficient payment methods for businesses, it has been a traditionally cumbersome option to set up,” said Cristina Cordova, Head of Business Development at Stripe. “We’re thrilled to partner with Xero to make this payment method easily available to the millions of subscribers that rely on its software.”
Last year, Xero and Stripe introducing an expanded online payment solution with automated reconciliation. Craig Walker added, “With the introduction of Stripe ACH, we are extending the ways a business can get paid into their Stripe account while maintaining the integrity of the first-class experience we've built between Stripe and Xero.”
You can find out more in this Xero Blog, Xero News article.