Xero has announced the next phase of its partnership with Stripe, enabling Xero customers to accept Automated Clearing House (ACH) bank transfers via its integration with Stripe. From within Payment Services settings, Xero customers can login to their Stripe account to connect Stripe ACH bank transfers as a payment gateway. They can then connect this 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 reconciliation.