Your PayTo questions answered

Find out more about PayTo, how it works, and frequently asked questions.

What is PayTo?

PayTo is an Australian real-time payment method integrated with Stripe that allows you to collect fast and secure one-off payments from your customers bank account at an affordable cost. Payments are confirmed in your Stripe account instantly, so you know the money is on the way.

Stripe is currently offering PayTo as a beta feature. This means that Stripe may still be developing aspects of the Stripe and PayTo integration, and Stripe may make changes to the product. For more information please refer to Stripe’s PayTo beta terms.

How does PayTo work in Xero?

PayTo enables customers to authorise bank payments using their mobile banking app. Then they pay using their PayID or BSB and account number.

When your customer pays, payments are confirmed instantly in your Stripe account, giving you peace of mind. Stripe typically settles your funds within two business days.

What are the benefits of offering PayTo as a payment method for my customers?

  • Fast and easy for your customer - PayTo enables customers to authorise bank payments using their mobile banking app. Then they pay using their PayID or BSB and account number.
  • Real-time payment visibility - When your customer pays, payments are confirmed in your Stripe account instantly, giving you peace of mind. Stripe typically settles your funds within 2 business days.
  • Low processing fees - PayTo offers fast, secure transactions at an affordable cost, so more money stays in your business.

Who can use PayTo in Xero?

Any Xero customer in Australia who has a Stripe account connected to their Xero subscription can enable PayTo as a payment method. You also need an ABN recorded in your Stripe account in order to enable PayTo.

How do I get started with PayTo in Xero?

PayTo is available with a Stripe account. To turn it on:

  • From your Dashboard, click Business, then Online Payments
  • In the Manage payment methods tab, click “Turn On” next to PayTo

Once enabled, it will be available on all future invoices and any invoices you have already issued but have not yet been paid. You can choose to toggle this on or off as needed right from your invoice.

Can all of my customers pay using PayTo?

If your customer’s bank supports PayTo, they will be able to make payments using this method. Most Australian banks support PayTo, however their bank, building society, or credit union will let them know once PayTo is available if it isn’t already.

Which banks are supported with PayTo?

If your customer’s bank supports PayTo, they will be able to make payment using this method. Most Australian banks support PayTo, however their bank, building society or credit union will let them know once PayTo is available if it isn’t already. PayTo provides an up to date list on their website.

Here are some FAQs on PayTo provided by from popular banks in Australia:

Are there transaction limits?

While PayTo as a payment method doesn't have a limit, a couple of banks have applied limits, for example:

  • ANZ: Does not accept payments over 25,000 AUD
  • Westpac: Does not accept payments over 25,000 AUD. Ad-hoc payments: Payments over 1,000 AUD are typically declined

If you or your customers experience an issue, it's recommended to check with the financial institution for the current policies as these may change.

Can I set up recurring payments with PayTo?

Unfortunately, at this stage, PayTo, powered by Stripe, is only available via Xero for one-time payments.

How do refunds work with PayTo?

Refunds for PayTo are processed through the Stripe dashboard. See Stripe’s user documentation to get up to date information on how to issue a refund.

How do disputes work with PayTo?

At this time, PayTo does not support disputes. Learn more about unauthorised payments here.

How much does PayTo cost?

See the Xero pricing page for more information.

I am not using Stripe, but I am using GoCardless - can I set up PayTo as a payment method?

No, at this stage PayTo is only available to Xero customers using Stripe.

When will I receive my payout?

When your customer successfully pays with PayTo, you’ll see the confirmed payment in your Stripe account. Stripe typically settles your funds within two business days.

How does my customer know that they’ve successfully received a PayTo agreement?

  • It will appear as a notification in the mobile banking app or internet banking.
  • Some financial institutions may also send communications via email or SMS to notify your customers that a PayTo agreement has been sent.
  • They may need to log into their bank online to access the agreement.

What if my customer didn’t receive their PayTo agreement?

Check that they’ve provided their correct BSB and account number or PayID and they’re still unable to see the PayTo agreement, advise them to contact their bank.

My customer doesn’t use mobile banking, how can they accept the PayTo agreement?

In most instances, your customer will at a minimum need to be registered for internet banking with their financial institution in order to accept the PayTo agreement.

Can my customers log into internet banking to accept a PayTo agreement?

Yes. While some financial institutions send agreements via email, SMS, or via a notification in the mobile banking app, you may also find the agreement just by logging into your bank online.

My customer is trying to accept a PayTo agreement using a joint bank account - do they need both account holders to accept the agreement?

Typically only one person needs to accept the PayTo agreement.

What happens if my customer declines the PayTo agreement?

The invoice will remain open (unpaid) and the customer will have to select a different method to pay.

My customer is receiving an error from their financial institution and they can’t accept the agreement - is this an error with Xero or Stripe?

If your customer experiences an error, there are several factors to consider such as the accuracy of payment details and sufficient funds, however we suggest they contact their bank for assistance.

My customer received an email notification that an agreement has been cancelled right after paying their invoice. What does this mean?

If your customer paid their invoice using PayTo, they may receive a notification from their bank stating that the PayTo agreement has been cancelled. This simply means the authorisation provided was only valid for a single, one-off payment. Stripe does not currently support recurring payments via PayTo, so your customer will need to authorise each invoice individually. This cancellation notice does not affect the payment they’ve already made.