Charges and payments with Xero and Stripe

What payment methods can be used to pay a Xero invoice through Stripe?

You can use credit and debit cards (all major types accepted).

For US accounts, the Xero integration with Stripe also supports ACH Credit Transfers, but not ACH debits.

How do I set up the ACH Credit Transfers payment method with Stripe?

Make sure that you have set up US accounts in both Xero and Stripe.

Once logged in to Xero, click on your organization name on the top left. From there, click Settings > Payment Services > Add Payment Service, and select Stripe ACH bank transfers.

How can I pass Stripe processing fees on to customers (known as "surcharging" in Xero)?

If you have chosen to use Stripe as a payment service, you can automatically add a processing fee to the payment total when your customer pays by credit card. You can do this by going to Settings > Payment Services and selecting the Charge my customer a processing fee option.

Note that Xero enables you to charge X% of the invoice to your customer. As Stripe’s fee structure includes X% and a fixed cents amount, you can fill the % in the “% of invoice total” field in Xero and will have to manually add the cents amount for an exact match.

The Stripe Pricing page outlines Stripe’s fee structure for US accounts. Scroll to the bottom of the page to change your country if needed.

Also note that in some jurisdictions, it is prohibited to charge processing fees to your customer. It is your responsibility to comply with applicable laws concerning surcharging.

The following article outlines a bit more information on how surcharging works in Xero: https://central.xero.com/s/article/Stripe#Stripesurcharging

How are receipts handled if I connect to Xero?

Once you have connected your Stripe account to Xero, you can send receipts from Stripe.

If you would like to send a single, one-off receipt for a payment you received:

  1. Go to the Payments tab and click the payment of interest.

  2. Go to the Receipt history panel and click Send receipt.

  3. Enter the email address you wish to send the receipt to.

You can also set up automatic receipts to automatically send email receipts to saved customers:

  1. Go to the Settings tab and click Email receipts.

  2. Toggle on for successful payments and/or refunds and click Save.

You can customize your receipts under Settings > Branding.

How can I split my payments?

If you are using the “Stripe ACH bank transfers” payment service in Xero, your customers will be able to make partial payments.

However, with the regular “Stripe” payment service, customers can only make full payments on a given invoice at this time. This has been noted as a feature request on the Xero Community page, and looks like it has gotten Xero’s attention. You can record your interest in this functionality here:

Online invoices - allow for a part payment / deposit on invoices

My customer is getting an “invalid email address” error.

This might be because the email address the invoice was sent to does not match the address in the contact record in Xero. Stripe validates the contact’s email address for payment.

Make sure that the email addresses match. A common error is that there might be a trailing space before or after the email address. This issue should be resolved once that space is removed.

To update the contact email address in Xero:

  1. Go to Contacts > All Contacts.

  2. Select the contact from the list and click Edit.

  3. Edit the details in the email field and click Save