Xero - beautiful accounting software

Xero Business Community

Xero Business Community

Hi everyone, Come on over to the new discussions in Xero Central. It’s a more intuitive way to connect and chat all things business with one another. Ask questions, dish out answers, and get involved.

You can still view topics in the Xero Business Community to see all the useful knowledge that’s been shared there; and you can restart conversations you feel have been of huge value to you on Xero Central.

If you have brilliant ideas for innovations, you can keep on adding feature requests in the Xero Business Community, and voting on existing requests. There’s more in store, as we come up with the best way to take on your thoughts and share developments
Community > Using Xero Connected Apps >

ACH Processor with Integration with Xero invoices

Started by Dan Schmidt -   in Using Xero Connected Apps

This a suggestion for current/potential add-on partners in the payment processing space. Currently there does not appear to be an offering for ACH payments on transactions originating in Xero. That is, services such as Rerun and Bill.com offer ACH payments, but only on invoices originating in their systems (no 2-way sync with Xero). Also, integration with a payment link on the invoice (such as Paypal/Stripe/eWAY, etc) would be very helpful.

Here is why this came up: I deal with service providers who bill large, infrequent invoices, such as doctors, web developers, attorneys, etc. And they use the great Xero functionality to generate invoices, track cashflow, etc. But payment processing at 2.9% or similar on a $5,000 - $10,000 transaction is very cost-prohibitive. Hence the need for flat-rate ACH transaction processing.

Anyone else seeing this hole in the ecosystem?
Hi Dan,

I have (I think) the same issue. Single cash receipts coming into the bank from "FastPay" that relate to multiple invoices. The receipts contain 90% balance of in-month payments and 10% of deferred receipts that are held for 6 months.

The only process is to either split invoices or mark payments against each invoice - which is obviously time consuming. I've been thinking about more creative approaches e.g. creating another debtor account with reversing transactions etc. but this isn't really going to save any time!

I'd like to see an Add-On that enabled many of these systems to link into Xero. Another approach would be more 'bank accounts' in addition to PayPal.

Count my vote in!!


Chris Hooper  

Hi Dan, our Add-On partners build the integration with Xero themselves, because of this, it’s best you let some of these ACH transaction processors know that you’d be keen for them to integrate with Xero. Thanks.

Matt Oldfield (Community Manager)  

Same here -- this is a HUGE stumbling block for us.

Mike Fleisher  

I might offer one work-around: Chase Bank offers an ACH program for up to 25 transactions at $25/month ($.15 for each transaction after that). You can perform one-time or repeating transactions. And of course, the bank feed will stream in the processed payment.
You need only create the invoice and reconcile the payment.
The one obvious caveat: You would need to open a Chase account if you do not already have a business account.

Jeremiah Kovacs  

Dan, Jeremiah, Chris and Mike:

I am building an accounts payable add-on for Xero that includes next-day ACH payments for $0.35 per payment. It should come out cheaper than Chase ($1 / transaction for the first 25).

Its still in private beta, but if anyone here would like to try it out, and beta-test the service, I'd appreciate any feedback.

You can email me at robert@payvy.com if any of you are interested.


Robert ONeill  

We've been using bill.com and find that their synchronization isn't very robust. If we mark a bill as paid in Xero, it doesn't sync that to bill.com. If we update a bill in Xero, it doen't sync to bill.com.

The only reason we use blll.com is for paying a handful of vendors with large dollar amounts via ACH, but we may just switch back to sending checks via online banking, though it's a shame that in this day and age we can't use ACH.

What I'd really like to see is Xero offering a "plugin" architecture similar to Salesforce.com where once you add a plugin, it becomes available INSIDE Xero. The "add-on" approach where you use a completely separate product and rely on a synchronization process is just...messy.

It would be great to handle my finances in Xero, as opposed to in Xero, and in X, and in Y, and in Z.

All that said, I think it's great that there are partners that extend Xero!

Dave Todaro  

this is a HUGE pain for us! We would like an add-on that allows us to build an invoice in Xero and bill then auto draft funds from out clients based on the invoice amount - we would be willing to pay for it too!! ASAP.

Andrew Forster  

I don't think we want 2 way sync .. we want API that allows for the functionality to be within Xero that way we can match up receivables with invoices to confirm payment

Andrew Forster  

Andrew et al,

I've had the chance to discuss this with several bankers since my post (Note: I think Robert at Payvy is still working on a solution, you might touch base with him also). The bankers indicated the issue is around some clawback provisions on ACH transactions - most banks are very reluctant to open customer accounts to ACH payments initiated by a vendor (as opposed to their customer) due to those provisions. My understanding is they feel it's due risky for them to allow - guess they might get stuck holding the bag on a fraudulent transaction?

Dan Schmidt  

Robert is working on a way for Xero users to be able to pay vendors via ACH .. so say im a SW company, if i had developers i outsourced to I would be able to pay them with his add-on (least thats my understanding)

I would like to either draft funds (say 10K) from my clients account .. or have some link etc in my invoices to allow them to pay me via ACH 1) so that I can account and match up receivables with invoices etc .. 2) so i don't have to pay CC fees

The problem is even if i use an outside ACH resource ill have to deal with multiple layers of tech and well that cost.


Andrew Forster  

Just checking in to see if this has been added yet? This is a super important feature that I'm sure just about every Xero user that invoices would use? Hopefully someone has good news for me as I just spent the last two hours integrating with bill.com trying to figure out how to do it, only to find out you can't.

BOGA Paddleboards  


After speaking to many Xero users about the need for this functionality, we have decided to build this into our service Payvy.com. (Accepting payments via ACH in addition to making ACH payments). I don't have a timeframe of when it will be available at this point, but it is on our roadmap to start as our next feature.

- Robert

Robert ONeill  

Thanks Robert. I'll go check you guys out! Can you make the checks print properly too? Kidding. :) Off to peek at Payvy. Look forward to someone pulling this off! Have a great evening.

BOGA Paddleboards  

I thought Dan was asking about customer invoice ACH payments, which is what I'm looking for. I checked out Payvy.com but it seems to be only for vendor bills. So sad.

Laura Sabbagh  

Hi Laura,

We are actually finishing up on a method for users to accept ACH payments. For $0.35 as well. It should be ready in about 2-3 weeks.

If you'd like to be on the beta list to try it, please email me at robert@payvy.com.


Robert ONeill  

I am interested in learning more about the ACH payments being accepted from customers mentioned. I will shoot you an email soon.

Jay Jenkins  

Just want to ping this.

Xero, are you able to reach out to developers and inquire about their interest?

Robert from Payvy,

Just emailed you!

Stephen Jones

Stephen Jones  

Really up to the Add-on to develop this kind of functionality! Hopefully they'll see the comments here and develop what you need :)

Robert, do feel free to jump back in here to add more details about your ACH Payment option.

Brittany H (Community Manager)  

Hi Brittany and everyone, we released a small group in September to start beta testing, after that initial feedback, we made some changes, our next beta group will be starting Nov 30.

If anyone is interested in trying it out, we are taking another set of people on December 15. :)

Hopefully launch as an official add-on by mid-Jan.

Robert ONeill  

Hi Robert,

I am also interested in trying out the ACH payment option for our accounts receivable. Thanks!

Shirley Palomino  

Apparently Stripe has a beta program available for ACH processing. The fee is 0.8%, capped at $5.00 (US terms at least). However, I am doubtful if it will work directly with the existing Xero integration.

Dean Wilson  

Just use Dwolla, it's free.

Create a business account at dwolla.com, then create a 'Hub' page (it's under Settings -> Features).

Copy the URL they give you, it will be something like https://www.dwolla.com/hub/111-111-1111 or https://www.dwolla.com/hub/your-company-name.

Then in Xero under Invoice Settings -> Payment Services, add a new payment service with 'Custom Payment URL' and past in your Dwolla Hub URL.

You can have the fields on your Hub page automatically filled out by adding:


(* use square parenthesis, not curly ones)

to the end of the URL, so the whole thing looks something like:


(* use square parenthesis, not curly ones)

and you're done! Next time someone clicks Pay Now on your invoice they'll be taken to your Dowlla Hub page, amount and description pre-filled, and ready to pay. They will have to create a Dwolla account of their own, but they can do that with their first payment.

Tim Preston  


Thank you for the information regarding Dwolla. I have contacted them (and Xero) previously regarding a Xero integration. I never really got a complete answer to date. We already have a Dwolla hub activated.

Two questions

1. How is the reconciliation process for recording paid invoices inside Xero? This is what I think will end up taking a great deal of time, however that may be an unjustified view.
2. Can you have two payment URLs on an invoice (i.e., Stripe and Dwolla)? I would think so, but I am just trying to avoid several hours of fiddling with Word templates, if possible.

Dean Wilson  

Hi Dean,

1. It's not integrated with Dwolla. If the invoice amount matches your bank statement then Xero will automatically match that during reconciliation, but you still have to click the reconcile button. I'm not sure if the description entered into the Hub page will appear on your bank statement to help with this process.

2. You can have two payment services on an invoice, but one of them has to be PayPal.

I'm a software consultant by trade so I'll find out how hard it is to build an integration with Dwolla and/or Stripe.

Tim Preston  

I would really like to see ACH receivables integrated with Xero invoices. The current best solution I have found Bill.com is pretty mediocre because the sync is only partially functional. You have to email each invoice to a customer twice: once through Xero and once through Bill.com

Ian Silver-Ramp  

Ian and Dean,

I've now got a decent amount of time to work on an integration with Stripe. I'll get something up for you to try soon.

Tim Preston  

For those interested in initiating pre-authorised Direct Debit/ACH or Credit Card transactions based on your Xero invoice due date and with Xero Payment Services option please check out uCollect.biz.

Right now it has facilities for Direct Debits for NZ Banks, Australian banks (using generic ABA file), EziDebit, US ACH and SEPA (Eurozone). You can also charge credit cards through Stripe, Payment Express, Forte and Authorize.net. We also have PayNow integration for selected gateways. Coming soon will be eWAY, eDebit, Mint Payments, Go Cardless and more. Please let us know if there is some gateway that you would like to use that we have not listed.

Peter McCarroll  

I've built an Add-on that integrates Xero invoicing and Stripe ACH based on my personal requirements as a service provider.

Having said that, please check it out and let me know if you have any suggestions or requests and I'll try to build those in. My email address is on the homepage.


Further details:

The workflow to complete a payment is modelled after Stripe checkout so it's as simple as possible for your clients to make payments.

When clients click the 'Pay Now' button on your invoice they're taken to a secure page that guides them through the process of creating a one-time ACH transfer.

I'm currently not charging anything above Stripe's standard fee of 0.8% capped at $5.

I hope this works for you all!

Tim Preston  

So Stripe doesn't present ACH as a payment option? I wonder why that is.

Stephen Sweeney  

Tim Preston, what do we do when a client banks at an institution that isn’t one of the default choices?

Michael Nardini (Xero Staff)  

For some reason, Xero keeps blaming add-on providers (like Stripe) for the lack of this feature. In this thread alone, Matt & Brittany have been guilty of this. Yet Stripe says it is Xero's fault. I had a lengthly thread with them both on Twitter and discovered Xero is misrepresenting this situation. It is, in fact, Xero's responsibility to add the feature. They finally admitted it later on in the Twitter thread.

Rob Bettis  

Michael: Although instant verification covers the most popular banks, I have verification via micro-deposits on the roadmap. It's a more lengthy process than instant verification, but will work with any US bank.

I'll make an announcement when it's ready.

Tim Preston  

Hey team, I do just want to sort out a bit of the confusion here. There are multiple ways to get paid via Xero, one through the Payment Services that we've developed internally (like Stripe & Paypal), and others who have created their own solution via the API. Initially this discussion was about the Apps that weren't developed by us, so that statement stands true: it's up to the App to add ACH support. It gets tricky when this discussion then asks after the Payment Service integrations that we've developed: as this responsibility lays with us. No conspiracy here, just a few crossed wires.

I'll let you know if plans are made to add this, but I want to assure you that this discussion is definitely on the team's radar!

Brittany H (Community Manager)  

Following up on my previous post, bank verification via micro-deposits is now available on receivabl.es.

Tim Preston  

I'm a new user to Xero and scratching my head about this one. I was a client of someone using Quickbooks online and paid an invoice using ACH, I don't remember having to verify my account or anything just enter routing and account info. How was it so seamless there and so daunting to implement with Xero?

Adam Klein  

Hi Adam, the account verification process is part of Stripe's fraud protection scheme. It's not related to Xero.

Personally, I'd be a little concerned if QBO let me plug in any bank account to draw funds from without checking that I owned the account first!

Tim Preston  

Just finished reading this entire thread. I'm a QB online user and I require my clients to pay ACH through QB or sending me a check (no CC fees). QB online ACH invoicing works great this way, but overall they are far from perfect and this is literally the only thing keeping me from making the switch to Xero. I reached out to David (who was extremely responsive and professional), but he had to disable this feature due to fraud. QB online also allows 3rd party software integrators, but they built the ACH feature in themselves for simplicity and reliability for their users. I hope Xero is taking notes and can catch up so I can make the switch.

Matt Totsch  

Is there any update from XERO? We've been using the xero system for two years now, and we have to continue to use bill.com (Which is extremely buggy by the way and inefficient), and we want to manage our AP & AR payments all within XERO, we do NOT want to use bill.com or an external system.

The current payment gateways non of them offer ACH as an integration within xero, except authorized.net who we've had a bad experience with.

Its been two years xerox, why aren't you listening to the customers? I'm guessing you're making a kick-back off the credit card transactions, which is why you probably don't want to add ACH that quickly.

Stripe offer ACH, so why can't you get them integrated?

We are ready to move back to QB if you guys don't innovate. Innovate or die; it's that simple.

Adam Butt  

Wow, it is disappointing to see this thread not resolved after two whole years. We just spent time integrating Stripe with Plaid so we can use the ACH feature, only to learn it doens't work with Xero. Our invoices originate from Xero with the nice link to *Pay Online*, but only with credit card (i.e. expensive merchant fees). When transactions are $7k - $15k each, no one wants to incur 2-3% in fees.

Kim Campbell  

Hiya - this was something that we looked into - but had to put it down for a while, while we focused on some other Payment Services work (like Stripe Reconciliation, late payment fees, BPay and better a Pay Pal process - among others). If you'd like to stay better updated on updates, you're welcome to follow this thread. I do just want to confirm again though that timeframes aren't set in stone, and it may not be this year, but as soon as we're able to pick this back up again we'll let you know.

Brittany H (Community Manager)