Stripe Xero Integration
Why integrating Stripe and Xero?
When you have integrated Stripe into your Xero account, you can let your customers settle your invoices using their credit cards, debit cards, or Apple Pay.
This means you get paid faster.
How does Stripe and Xero Integration work?
First set up a Stripe account through Xero.
Link Stripe as a payment service to Xero invoices.
When you send an invoice with Stripe attached, your customer will have options to pay using their credit cards, or other payment methods.
You can choose to cover the Stripe fees, or pass on the surcharge fees to your customer.
When the payment is received, Xero will automatically create a spend money transaction for the Stripe fee and mark the invoice as paid.
When Stripe transfers your money to your bank account, Xero will automatically find and match all the payments and fees. This means reconciliation is also automatically completed.
How to integrate Stripe and Xero?
If you already have a Stripe account, you will be able to connect Xero from your existing Stripe account.
You must set up your Stripe account and Xero organization to the correct countries the first time. You will not be able to change the country information later.
Log into your Stripe account.
In Xero, go to Settings, Payment Services, Add Payment Service, select Stripe.
Complete the details in the popup window, including name, credit card logos, payment account, fees.
Click Connect to Stripe.
You will be taken to Stripe.
In the dropdown, select the Stripe account you want your Xero organization to be connected to.
Click Connect my Stripe account.
What is Stripe? How does Stripe work?
Stripe Payments is a payment processing platform.
Stripe works like this: It enables your customer to transfer money from his/her bank account to your business bank account through credit card transactions.
The prerequisite is that your business needs to first register a Stripe account.
An example is that you can integrate Stripe on to your website, assuming the website is an online shopping site.
-
On the checkout page of your website, payment method through credit cards is available for your customers.
-
When your customer makes the payment using his/her credit card, the payment process behind it is actually Stripe Payments.
-
As a record, the money received will show up in your Stripe account.
-
The actual money will be transferred to your business bank account – The one that you have already associated with your Stripe account.
Assume your plan is to build your shopping site using Wordpress or Shopify (i.e. some of the most common eCommerce website builders/platforms). Your web developer should be able to easily connect the checkout page of your site to the Stripe payment processing platform.
Stripe Payments is an all-in-one payment processor.
-
Stripe is a combination of features of a third-party payment processor and a payment gateway.
-
Stripe may be used at the point of sale transactions, but its main focus is almost always on on eCommerce payments.
-
Stripe provides a powerful suite of developer tools for integrating the necessary payment features into your shopping cart or eCommerce website.
-
Stripe supports international transactions in multi currencies and numerous payment methods that may have to deal with VAT of different countries and currency exchange rates.