Stripe Merchant Fees Down From 1 April 2024 – Update your XERO Integration

What is Stripe?

Stripe is an online payment processing and credit card processing platform for business, that integrates with XERO to make it easy for customers to pay your invoices. You will save time and effort chasing and tracking down payments since your customers can easily pay by card, when it suits them. XERO will automatically match payments as they come through your bank feed, making it easier to reconcile payments with one click.

As of 1 April 2024, Stripe has decreased their domestic card processing fees for online payments for Australian businesses on standard pricing. The fees have gone from 1.75% + AU$0.30 to 1.70% + AU$0.30.

Already using Stripe with XERO?

If you are passing the Stripe surcharge onto your customers (tip: you should) then you’ll need to manually update the amount in XERO so that you are not over charging your customers. In Australia, its illegal to pass on a surcharge, which is greater than the merchant fee your business actually incurred to process the transaction.

We recommend that businesses simply apply the updated 1.7% as the surcharge to pass onto clients, as this will recover most of the fees charged by Stripe and not be at risk of overcharging your customers.

To make this change in XERO, follow these steps:

1. In XERO, go to Settings
2. Click Payment Services
3. Click Manage connected services
4. Click Edit on the Stripe services (hint: you may have more than 1 listed, if so, please check and update them all)
5. Set the Processing fee to 7% and click Save
6. You’re done

Not using Stripe yet?

If you are using XERO and you’re not allowing your customers to pay your invoices via credit card, then you should. You may be surprised at the level of uptake. For some customers, convenience, cashflow and frequent flyer points are all good reasons to pay on credit card.

The XERO + Stripe integration is slick and makes it super easy for customers to pay your invoices – they’ll see a nice friendly ‘Pay Now’ button which they can click to make payment at a time and place that suits them (before the due date).

On the other side of the transaction, the XERO + Stripe integration will automatically reconcile the payment of the invoice in your XERO file, plus it will also handle the merchant fee and surcharge. It just requires an OK in the bank reconciliation screen.

If you want to deploy Stripe in your business, talk to LINK to make it happen so you and your customers can start benefitting from it right away.