Adding To Xero, For SMB ACH Payments

The rise of the freelancer economy and SMBs operating on a contract basis has brought attention on the fees and friction faced when these smaller outfits get paid. Relying on traditional payment methods is relatively costly and time-consuming when technology helps offer faster and cheaper methods of paying and getting paid.

In an interview with PYMNTS, Tim Preston, a software consultant, said that receivabl.es has its gestation in his own experience as a freelancer, noting that, during a stint in Australia, he found it difficult to get large payments from clients without relatively high transaction fees attached, in the case of credit cards, and that paper checks, of course, have delays and inefficiencies attached.

Thus, the development of the add-on, he said, with an initial focus on consultants and freelancers in the United States (and they can be considered among the smallest business owners, operating with a staff, front office and back office, sometimes, of a single person).

Preston said the addition of an ACH/eCheck payment option for invoices gives these workers an added dimension of how they want to be paid. That decision is done with the click of a button as the invoice is presented, in conjunction with Xero and also Stripe, which, in addition to processing, also links into payroll accounts. The transfer time gets cut down to settlement within days (and, he noted, the new initiatives that result in faster payments across the ACH network, to same-day status, will shorten settlement times). Limits on transactions as they stand now are at $10,000.

In reference to process, Preston said the ability to actively decide on ACH payments means that the freelancer or small business customer is in control of payments and winds up paying transaction fees that are a just a few dollars (to as low as $0.25 for smaller payments). Xero links with receivabl.es. The invoice is sent through with a “pay now” button, which Preston said makes the interaction an intuitive one, and through the linked bank accounts (and ACH rails), payment is settled after a few days. Asked by PYMNTS about security, Preston said two-factor authentication is in place.