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Started by Xero API -   in App Reviews |Payments

1.4 out of 5 stars
Based on 26 user ratings
If you are a user of Xero and PayPal, tell us how you are getting on and your experience so far. Any tips?

About PayPal

PayPal is a safe, easy way to pay and get paid online. You can accept credit card payments and automatically view and reconcile transactions within Xero. For more information, check out PayPal.


For integration support, contact Xero, or for issues relating to PayPal service, contact PayPal. Please also see this guide on integrating PayPal and Xero.

Xero integration with PayPal is hopeless. Threads of discussion exist where Xero explain that unless the Paypal user is paying with funds from their actual paypal bank account holdings (which I imagine is minimal), then Xero is unable to to import details of the transaction. This effectively makes the integration useless and triples the workload to reconcile invoices. Please fix.

daniel holt  

Hi Nathanial,
I am so sorry to hear about your bad experience. Can I help you with the issue that you are having?

Lisa Wade-Lehman  

Terrible customer service, one of the worst! For a company so large and profitable, you'd think they'd provide better service and rates. But, they don't.

Nathaniel Higgins  

It was great meeting you at Xerocon. Thanks so much Heather for submitting your review and helping others by providing some great suggestions. I also wanted to add that PayPal is currently working with Xero to provide an improved data sync experience. We expect this to be available by the end of November 2017. If you are having issues, please follow Heather's suggestions or bear with us. It will get better.

Lisa Wade-Lehman  

Hi! My name is Heather Smith, and I'm the author of Xero for Dummies. I've processed 1219 PayPal in my Xero file since 2013. I have PayPal attached to my online shop and integrated into my online invoices. I receive many overseas payments - PayPal makes it so easy for me to do business overseas.

PayPal has always offered a seamless integration and is effortless to reconcile. I help many clients set up Xero, and consistently - if PayPal is not working form them - it is because they have not set it up correctly. There are some easy to follow help instructions - I will agree it is not a click and set set-up. You need to login to PayPal and change some of the settings.

Here is the link for Australia: https://help.xero.com/au/BankAccounts_PayPal

Also, you need to go into Settings > General Settings > Payment Services and set something up there too.

The only time I need to jump in and have a think about the reconciliation - is when I BUY something - however, I don't have the funds in PayPal - and it sweeps money out of my credit card - so a single transaction is hitting two active feeds.

I am honestly a bit shocked by the reviews here, as I know many Xero partners, like myself are happily using PayPal too.

PayPal suits my payment needs.

Heather Smith  

Hi Patrick, I am sorry to hear that you did not receive the high level of service we aim to provide all our customers. We would love to share with you the value that PayPal offers. If you choose to return to the PayPal family in the future, our customer service representatives can be contacted on 1800 073 263.

Lisa Wade-Lehman  

Do not bother with PayPal... service is shite , fees are outrageous.

Patrick Hamilton  


I never thought I would have to write this but it seems other small business owners have been held to ransom as well by PayPal. I'm absolutely disgusted by their business practice and complete lack of service. I'm done with them. Don't even bother with PayPal, they don't give two hoots about your small business, your cash flow nor do they have any intention of assisting you.

I've set up my PayPal business account about a year ago - I believe via Xero - but have only recently had customers use the credit card payment option via PayPal. Two payments went into the account and totalled just over $1000 AUD at which point my PayPal account got frozen and I've been confronted with an ever increasing barrage of requests for personal information, documents and repeated "proof of name", "proof of address" etc. As our business is a "partnership" and always has been, but for some reason it was listed as "sole trader" in the account settings, I was then asked to effectively make up a document that states the blatantly obvious - information that is already publicly available on the Australian Government's ABN/ABR and ASIC websites. It was the most inane tickbox exercise to satisfy PayPal's bureaucratic dimwits. I've written several eMails to their "customer service" asking them specific questions, and every time I get a stock-standard reply with no direct response to any of my queries. I called PayPal and was connected to some American operator who claimed "your own government is asking us to collect this information for anti-money laundering/terrorism purposes". Well, my own government already has all the information that they needed and I am providing PayPal with exactly that information and yet PayPal is asking for even more documents, in the meantime locking any access to your account. Can't withdraw, nobody can even pay into it anymore. This is the most appalling treatment I've ever been subjected to. Totally disgraceful harassment. I've wasted hours on trying to sort this out. Don't make the same mistake and give PayPal the flick.

Gabriel Perkhofer  

My PayPal Credit was syncing properly and now it has quit syncing. I don't even have the option to reconnect. Any Ideas??

Vicci Turner  

Paypal restricted my account as an over the threshold payment had been made. I was asked to provide proof of identity, which I thought I'd already provided when I opened my Paypal business account. Unfortunately on login to Paypal an error had occurred and I was not provided the prompts to provide proof of identity. After a 20 min on-hold telephone call to Paypal, I'm told this may take 4-5 business days to resolve. Further more as a small business sole trader the Paypal fees on sizeable invoices can affect the bottom line. There is no functionality within Zero or Paypal to add a surcharge for credit card payment via Paypal. I like to offer this option to my customer for convenance but now after this recent debacle I've removed this payment option.

Ashley Dehnert  

Shocking. I had been using paypal to pay for items for years, so thought I would sent up a business account to use with Xero. Easy enough to do after verifying my account. However the first payment of $2500 was seized by paypal and held ransom until I would provide, full copy of passport, full drivers licence AND another document such as a tax document. What nerve. I have asked they refund my customer in full (not yet happened). How can they legally do this? Why not be up front and ask for all this documentation, rather than seizing my customers money to extort this information from me. Shame on you Paypal. I will be cancelling as soon as possible.

Burke Hugo  

Paypal will not make it easy to do business with. You will jump hoops for days then when all is done they will start holding your funds for 30 days. Skip PayPal. Try Payline. good email communication and phone calls taken easily. They take a lot less percentage than PayPal too and they do not hold your funds. Paypal is making a bunch of money holding our money hostage. 30 day hold for hvac services completed a week ago and they holding funds for 30 days. How many people are they doing that with. The interest definitely adds up. As for integrating with Zero...set up is fine but then you still have to deal with PayPal requirements which will be more time consuming that it is worth. Suggest finding a better payment gateway. Avoid the aggravation

Tami LaVelle  

We are pretty new to online receipts so PayPal was our safe bet. After doing a couple of thousand £ we were hit with account restrictions and now need to submit a mass of information. We did this but PayPal have not processed our submission yet and ask me to go to a page on their website which does not exist. On top of this the fees are very expensive. So 1* for PayPal.
As for the integration the basics are fine. However after setting up PayPal with VAT when we send out invoices to clients to pay VAT is added again resulting in us having to offer refunds. I contacted Xero and after several 'Thanks for your enquiry we are working on a response...' type emails we got a response agreeing it was flawed. A promise to fix it within the next 6 months was given but I looked on the forum and this flaw has been around for over a year.
So 1* for Xero I guess.

Chris Newman  

I haven't noticed any problems with the feed, but I've just removed the Paypal link from my invoices because there is no way to add fees without raising credit notes if they pay another way, and that is too much effort. I've opted for a note on the invoice to say "Payments can be made by PayPal (fees apply). If you would like to use this method, please email for details and a revised invoice."

We will just revise invoices on a needs basis. I'm disappointed the Xero hasn't implemented any fees options, but appreciate that the technical effort is probably not viable, especially when Xero is only £30 per month.

Peter Lambourne  

Integration is Great! Only problem I have is when invoices are over $1,000 PayPal will hold the money. It's like they think I'm running an ebay business. So, they got fired. On to the next processor.

Brady Burgess  

I know that Xero is generally unresponsive to requests from customer but I wanted to point that Paypal has many transaction fields (such as Custom Note) that cannot be automatically brought into Xero through the Paypal Feed. I dislike Zapier so I don't see that as a solution.

David Wilson  

The integration was easy to set up as long as you had a Paypal Premier/Business Account setup. It's a great integration.

However, I think it's annoying that the customer needs to type in their details like address, email and phone no. (when they don't have a Paypal Account).

It would be great if we didn't need these fields as mandatory or if they could be pre-filled so that the customer doesn't have to re-type everytime (especially if they don't want to set up a Paypal account).

Overall, I like the integration but I'd like to go that extra mile to make it even easier for the customer.

Jo Pinto  

Just deleted PayPal from my Xero account, I don't think this is a Xero fault but Paypal keeps adding on postage on top of the customers invoice, I know I could remove that element in Paypal but it would affect all my customers even those who are purchasing off the web site

Alan Caulfield  

Yep I have, and my clients all have had issues with Paypal and their method of doing 'business'.

Stick with local, reliable vendors who do this.

I have had good experiences with DPS and SwipeHQ in NZ.

Ed Adams  

Need the ability to add a surcharge, PayPal's fees are just to high to justify.
Sticking with eWAY for the time being.

Philip Moore  

Stay away, Paypal is a risk to any business. Phil was right about them overstepping with regard to information. Use stripe - they know their place!

Murray Leach  

Removed it after 1 transaction as it the fee PP took was astronomical. I see that others have problems with it not linking to business seller fee's also. Trying GoCardless now...

David Wilde  

My paypal account just disappeared from xero with no one deleting it.

Cedric Pilard  

Everything was working fine till we decided to inform all our customers that we were accepting Paypal.

Our sales transaction with Paypal more than double on the next month. What did they do? They blocked my account because our volume increased too fast, WTH???

Integration works fine, but I we have more than 15,000 USD held by Paypal for almost 20 days after we send all the info they need (even contacting each customer that bought recently and ask them to write english emails to Paypal saying that they received what they paid).

I don't recommend to anyone.

Lincoln Fracari  

I am in the same position as Phil. We had been using paypal and then applied to use paypal go - now they want information on our business that not even the bank who we have been trading with for 15+ years, requires!

I've placed them in the too hard basket which is a pity because for many years they have been easy to deal with...

Emma Vercoe  

Paypal is appalling - so far we have lost $1600 with them. They cancel transactions for no reason which is an absolute pain after the client has happily paid and then left. Just now they have reversed $600 payment to us that they deemed suspicious - The reason appeared to be that the payer was a "non US resident" -- all our payers are! It would have been far far cheaper to have installed an eftpos machine.
Don't bother trying to contact them - they don't respond.

SBA Hibiscus Coast  

Is Paypal a Merchant Gateway, A Bank or My Auditor.

At 1703 Friday I received an email from PayPal saying that my account was limited. (Paypals AU merchant services close at AEST 1700 and don't open until Monday.

I had a PayPal link on my Xero invoice until today. I have used the link for the past year with no problems.

My Payments via Paypal increase and they insist I provide, details of my suppliers, details of my sales, tracking details, proof delivery and the list goes on.

Three months ago I seek to use Paypal GO and then thud needing the 100 points of ID etc.

But then

They have limited my account and held on to $3200 until I provide the following;

I am stunned at the incredulity of their requirements

21 May 2014 Proof of name and date of birthTo help us confirm your identity, we require a document that contains your full name and date of birth. Click the Resolve button for a list of acceptable documents. Information Received-Accepted task complete Complete
21 May 2014 Proof of AddressTo help us confirm your address, we require a document that contains your full name and residential address. Click the Resolve button for a list of acceptable documents. Information Received-Not Accepted please resubmit Reason: Document did not contain Requested information Resolve
15 Aug 2014 Provide InvoicesPlease confirm that you own the merchandise you're selling. Valid documents are copies of sales receipts and original bills of sale referencing where you purchased or acquired the item(s) you are selling. Invoices must also show date of purchase, name of wholesaler or supplier, a description of the items sold, quantity of items purchased and the amount you paid for the merchandise. We will handle your information in accordance with our privacy policy. Waiting for your response Resolve

I tried to call but as I said the Paypal merchant support closes at 5 pm three minutes before they sent the email.

I would like other feedback about whether anyone has experienced the same.

Please see all in my next post



Phil Brumby  

tried to set it up today- Im in NZ can't seem to do it sick of wasting time so won't bother

Miles Nathan  

I agree with Dianne Jewell's comments. I found the config and set up very straightforward.
I am investigating whether or not I can set it up for Paypals "Business Payments" Like others I would love to see fees of 50c and 2.9%.
The only issue I have is when Paypal occasionally take a transaction to one side to "investigate" I have to pull that from Payapl as a csv file and upload manually.

Dave Hume  

This very badly needs to have Business Payments enabled. As currently designed, all payments through this integration are charged a 2.9% processing fee - killer for large invoices.

Paypal's "Business Payments" feature has already been implemented by Freshbooks, and allows payments of any size for $0.50 flat. Need it.

Bill DAlessandro  

They don't have business payments enabled, so I was charged 2.9% of the entire transaction. That's $183! With business payments, any U.S. B2B non-credit card transaction only costs $0.50. We need that.

Nathan Tate  

Im in NZ there is no way that I can create an account as my IP is not from America, this is one of the lousiest links I have ever seen.
WIth the current link there is no way I can create an account as I dont have a zip code or a relevant american phone number, well fancy that, im in NZ!!!

Dan Pollard