Can You Link A Credit Card to Xero?

By Tevait Feanle •  Updated: 03/17/24 •  5 min read

Xero is a popular financial management software. It was designed in New Zealand but has recently moved into South Africa, too. It is aimed at businesses looking for streamlined and simple, but holistic, accounting solutions. Among its features is the ability to integrate various financial accounts, including credit cards, to record and facilitate seamless transaction tracking and expense management. As a newer product, we see a lot of questions about Xero, especially around credit cards. Today, we’ve rounded up some of the most common, and are here to answer your questions!

What is Xero?

Xero is a cloud-based accounting software platform that aims to streamline financial management for businesses of all sizes. Developed in New Zealand and launched in 2006, Xero has rapidly expanded its presence globally, including in South Africa, where it has gained popularity among small and medium-sized enterprises/SMEs, accountants, and bookkeepers.

At its core, Xero offers accounting features intended to simplify tasks such as invoicing, bank reconciliation, expense tracking, and reporting. They specifically target users who are not accountants, focusing on user-friendly features and easy data integration through their ‘feeds’, which track and assign data automatically.

Unlike traditional desktop accounting software, Xero operates entirely in the cloud, allowing users to access their financial data anytime, anywhere, and from any internet-enabled device. This accessibility makes it particularly convenient for businesses with multiple locations or remote teams.

Can You Link A Credit Card to Xero?

You can link your business credit card to Xero to make your financial management processes considerably easier. By integrating your credit card account with Xero, you can access real-time transaction data, allowing for accurate recording and categorization of expenses within the platform. This lets you track purchases, monitor your spending, and reconcile your credit card transactions with ease. You will simply load the card as another bank feed within the Xero platform, just as with your business account. They offer full instructions here if you are struggling. 

Can You Pay With A Credit Card on Xero?

While Xero primarily serves as an accounting software rather than a payment processing platform, it does offer functionality for invoicing and receiving payments online. However, the ability to accept credit card payments directly through Xero may require integration with third-party payment gateways or merchant services providers. Xero is pretty widely recognized and accepted by most of these platforms.

You can also natively allow your customers to pay Xero online invoices via credit card. Offering clients multiple ways to pay that are convenient to them is great for boosting payments, reducing wait times, and building trust with your clients.

How Do I Add a Credit Card to an Invoice in Xero?

To add a credit card payment option to an invoice in Xero, you’ll need to set up integration with a compatible payment gateway or merchant services provider. Xero directly recommends Stripe and Razer Merchant Services. If you don’t already use these, they offer a one-stop option to get started on their website. 

Once integrated, you can configure your invoice templates to include a ‘Pay Now’ button or link, allowing customers to make payments using their credit cards directly through the invoice. Xero will then facilitate the processing of the payment and update the corresponding invoice status. Payment collection just got a whole lot easier!

Which Banks Can Connect to Xero?

Xero offers integration with a wide range of banks and financial institutions in South Africa. This integration means you can set up a bank feed through your Xero, allowing you to securely connect your accounts for automated transaction feeds and bank reconciliations. No one ever said no to easier accounting, right?

Some of the major South African banks that can connect to Xero include Absa, Standard Bank, Nedbank, and FNB (First National Bank). Xero is also expanding its network of banking partners to provide coverage and support for businesses of all sizes. If your bank is not yet integrated, you can set up a manual feed instead. It is only slightly less convenient. 

Can I Make Payments Directly From Xero?

While Xero facilitates invoicing and payment tracking, it does not directly process payments or transfer funds between accounts. Instead, Xero integrates with third-party payment gateways and banking platforms to allow for payment collection and reconciliation. 

Businesses can set up automated payment reminders, accept online payments through integrated payment gateways directly on their invoice, and reconcile payments received against outstanding invoices within the Xero platform. 

Integrating your business credit card with Xero offers numerous benefits for businesses using this cloud accounting package. These include enhanced transaction tracking, simplified invoicing, and time-saving feed options. If you are looking for a cloud-based accounting package that makes it easier to handle your finances yourself without a steep learning curve, then Xero might be right for you. Its simplified approach to using a business credit card within your organization is definitely one of its most interesting features.