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How To Integrate Credit Card Processing Into Xero

April 22, 2021
Bill Kimball

how to log a credit card payment in xero

Use the mobile app to reconcile, send invoices, or create expense claims – from anywhere. To automate the reconciliation of credit card payments, subscribe to Silver Siphon. Your customers can pay using any device, anytime and anywhere, using all major credit cards, as well as PayPal, Social Payments, MasterPass and Visa Checkout. Xero’s beautiful accounting software is pre-integrated with eWAY’s innovative payment solutions. When businesses use them together, they benefit from seamless business backend operations. It’s a marriage made in small business heaven.

Set up a bank feed to receive your credit card statement lines directly into Xero. Or if bank feeds are not available, import your statement manually.

I’ve just joined Xero and have linked my credit card account to my Xero account so can see all the transactions. I have all the paper receipts for the expenditure. I’d suggest you enter a transfer from your checking account to your Amex with the date you are making the transfer with the bank. The balance shown on your Dashboard for your checking account will take the Amex payment into account so you’ll see the future balance. If this is the case then you need to delete the imported bank statement, edit the CSV file to negate all the amounts, then re-import. QB automatically debits the checking account. Bank transactions download for both accounts and it reconciles.

I’m new to Xero and loving just about everything in it after about 10 years of QuickBooks drudgery. However, accounting for the payment of my business Amex from my checking account hasn’t been fun. I want to pay a credit card balance with a printed check. But I simply cannot find ANY way to do it because Xero tries to be so smart hiding which accounts I can select for things. Hi Connie, sounds like the Transfer tab may have been used in both accounts.

​fast, Automated Payment Process

Small businesses get paid up to twice as fast with online invoice payments. In the case of direct debit, the customer can authorise ongoing payments. This allows you to take money direct from their bank account whenever a bill is due. Stripe is a leading global online payment solution that lets customers pay with debit card, credit card or Apple Pay. With a feed into Xero for easy reconciliation, and auto pay for repeat payments, Stripe makes it easier for you to accept payments in Xero. Use online invoice payments to automatically collect payments from repeat customers. For example, automatically collect bank-to-bank payments from your customer on the due date using GoCardless.

Simply sign-up and begin accepting transactions within minutes. Stripe credit card merchant facility is integrated in glüh to facilitate instant credit card payments at quote acceptance and online customer orders. With credit card options it’s never been easier to pay an invoice, and with Xero eWAY Feed it’s never been easier to automatically reconcile those payments. This means the order will still be created and exported to Xero, but their payment will not make that day’s settlement payment into your bank account. When doing your business accounts, you’ll need to treat the transaction fee as an expense.

Integrating Credit Card Processing Into Xero

If I enter it as “receive money” and say it’s from my checking account, I wind up with a second debit entry in my check register. When using the paid bill method, there appears to be no way to tie the payment transaction to the debit in checking. If I only enter a transfer from my checking account to my Amex account to show payment of my Amex, the two accounts reconcile and everyone’s happy. You do not need to enter the payment in to the corporate account at all! When you create the outbound transfer from the main account it automatically creates the inbound transfer on the other account. When you reconcile the statement you should just be able to mark it as reconciled. Send online invoices to your customers – and get updated when they’re opened.

Once you have entered the opening balance, you can go ahead and import the transactions either by setting up an automated feed or by manually uploading the bank statements. 7) Apply each payment on the bottom of the invoice as you would to receive cash on a AR invoice. 2) Make sure you have created codes for all your AP/Expense codes you use when you pay any bills in Xero. In regards to your question above, where there is a will there is a way, but it is a heinous work around and your accountant won’t be very happy with you.

Creating and applying credits is also easy, even on the go. Better yet, a payment link built into each invoice allows the customer to click and pay using PayPal or a credit card. I have seen payments missing from the bank feed in a few banks. You should notify support () so that they know . You will have the payment in the transactions tab. Simply open the payment and use Options, Mark as Reconciled.

Keep an eye out for your confirmation email, create your password, and login to Chaser. Please note that there will be a discrepancy between the surcharge configured in glüh and the Stripe fee.

If you use software to send invoices, it’s easy to offer convenient payment options. It’s a bonus for your customers, and it will get you paid faster. That could be really handy if, like many small businesses, you experience cash flow issues due to late payment. While it should cost you nothing to set up a merchant service provider and accept online payment, there will be transaction fees. For debit and credit cards, the fee works out to between 2% and 4% of the invoice value. For direct debit, the fee will depend on the size of the transaction but should never get any higher than about £2. If you’ve bought something online, then you’ve probably used an online payment method.

Xero is easy to use online accounting software that’s designed specifically for small businesses. It’s all online, so you can work when and where you want to. That’s the thing about using online payment services. You should find that you get paid faster overall, which is great. And you may just transform a consistently late payer into an always on-time payer. Choose a merchant service provider that can integrate with your invoicing software. Once the service is switched on, a ‘pay now’ button will appear on your invoices.

how to log a credit card payment in xero

To simplify this reconciliation process, install the Stripe payment service in Xero to automate transaction reconciliation including the Stripe transaction fee. Note that the credit card surcharge cannot exceed the merchant fee if trading in Australia.Click here for details.

No Merchant Account Required

The description field is mandatory, therefore, enter the description of this overpayment and click OK. Xero, realizing that the invoice has been overpaid will display a pop-up window asking you to enter the description and the Region . Fortunately, Xero allows you to keep track of all the overpayments with the flexibility of dealing with both situations. So below, we will discuss both scenarios one by one. ClickFind & Matchon the far right-hand side of the screen on the same line as the transaction.

  • Any payments between the bank account and credit card would be recognized by a Transfer transaction.
  • Capital One offers checkout options, shopping deals and rewards that make shopping simpler–both online and in-store.
  • Save time and money with a free tool that instantly finds you deals online.
  • Then pay each invoice from your credit card account.
  • Since it is cloud-based, you are notified when a customer views one of your invoices, which should eliminate the “Oh, we never got that invoice” excuse you may often hear.
  • You only need to create the Transfer in the Checking account, as the transaction will be generated in the Credit Card – for you to reconcile.

Let’s assume he paid us $334.00 (overpayment of $100.00). Go right beneath the invoice in Receive a payment section and enter the amount, date and the bank account in the Amount Paid, Date Paid and Paid To fields respectively. The following process describes how to reconcile a credit card settlement transaction against the associated invoices/orders where the payment gateway being used is not Stripe. Stripe makes it easy to accept debit and credit card payments for online invoices sent from Xero.

They may not always be allocated to your ‘drawings’ account. Xero online invoices and payments provide better protection from fraudulent activity. Businesses using online payment options with Xero invoices get paid faster, and it’s easy to do.

This is because the surcharge is a markup, but the Stripe fee is a percentage based on the gross transaction value including the surcharge. Xero eWAY Feed puts you back in the driver’s seat. You can concentrate on growing your business. Pre-integrated, you add the Pay This Button to your invoice, and the technology does the rest.

how to log a credit card payment in xero

If you have spent any amount of time dealing with merchant processing, you know that keyed transactions are more expensive than swiped ones. Review the list of spend transactions already recorded and check the box next to the correct one. Is there a definitive list of UK credit card providers that support feeds or Yodlee? I can’t get solid information and only Metro Bank in the UK is listed as offering credit card feeds. Shoppers do not need to enter into a lengthy registration process, you simply log in using your internet banking details. Save time and money with a free tool that instantly finds you deals online. Capital One offers checkout options, shopping deals and rewards that make shopping simpler–both online and in-store.

When you email the invoice to a customer, they can click the button to pay you instantly. Businesses can accept online payments through a merchant service provider.