Melio is an accounts receivable and accounts payable solution with very few fees. It can make life easier for you, your accountant, and your payees.
In this article, Melio’s going under the spotlight for a full review of its features. You can also read about Wise Business, which could help you save on international bill payment and invoicing.
What is Melio? Quick Overview
Here’s a quick overview of Melio to get us started on this question.
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What is Melio, and how does it work?
Melio enables your business to pay its vendors exactly as you want to pay them(see Melio alternatives). Even if your vendors accept payment by check only, Melio allows you to pay via ACH bank transfer, debit and credit card. Your payees will receive their funds via direct deposit or by check in the mail, meaning they don’t need to sign up for Melio to accept payments.
To send a payment with Melio, you’ll first need to create an account. Once you have an account, you can upload the invoice or bill you want to pay. You can do this either by manually entering invoice information or simply by taking a photo of the invoice.
You can then choose what payment method you want to pay your vendor with. Here, you’ll also be able to schedule or automate the payment for the specific date it’s due.
Lastly, you can choose how your vendor will receive payment—either by check in the mail or through a direct deposit to their bank account.²
With Melio, you can also receive payments from customers as well as send invoices.³
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Melio Key Features
Melio has a range of features that make sending payments and invoices, as well as tracking payment flows, easy.
Melio syncs with Xero, QuickBooks, FreshBooks and more. This means your payments and invoices can transfer instantly to your accounting software in real time, simplifying bookkeeping and taxes.²
Melio supports international payments, making it ideal for businesses dealing with foreign vendors. It currently supports cross border payments to 80+ countries across the world.⁴
As Melio supports credit card payments, this means you can use your favorite business credit card to earn points, miles or cash back on your expenditure. That way, you’ll continue earning points on large business payments, enabling you to redeem credit card rewards and use points for transfer partner redemptions much faster.²
Likewise, paying with a credit card allows you to increase your short-term cash flow.
Ease of Use
When you upload an invoice, automatic bill capture AI will take the necessary information from the scan to allow you to make the payment. This saves you from having to manually enter the invoice.
Alternatively, you can get vendors to send invoices directly to your Melio email address, which will add them to your Pay Inbox automatically, saving you time.⁵
You can also pay different vendors at the same time as well as send multiple payments to the same vendor, in any supported country. This batch payments feature makes paying invoices more efficient, allowing you to send multiple payments with one click.
When combining payments, you can use the split payment feature to allow you to use different payment methods to fund different parts of the payment, giving you flexibility in how you pay your vendors.²
When sending invoices, you can customize them with your own brand logo. You can also send payment links to your customers, expediting the payment process.³
Melio receives overall positive reviews on Trustpilot (an independent review site), with an average rating of 4.4 out of 5. Users say that Melio’s customer service agents are easy and friendly to work with, helping you solve any issue. They also rate the efficiency of bill payment with Melio, as well as its handy integrations with accounting softwares.¹
In some cases, Trustpilot reviewers complain that payment delivery times can be an issue, with payments taking longer than expected to arrive.¹
Customer Service
Melio has a dedicated help center with a range of guides and FAQs to help solve common issues.⁶ You can also submit a query via their online form as well as contact their customer service through live chat on Mondays to Fridays, 9AM to 8PM EST.⁷ ¹
Security
Melio uses state-of-the-art security features to protect your funds and ensure payments reach their recipients.
Melio has the following certifications:
- SOC 2 Type 2
- ISO 27001
- ISO 27017
- ISO 27018⁸
Additionally, Melio’s third party payment processor is PCI Level 1 certified, ensuring card data is protected to the highest standards.⁸
Melio Fees
So with all these features, the question remains: “Is Melio free to use?”
When it comes to creating an account, Melio is free to use. There are no subscription fees, sign up fees or recurring monthly fees.
ACH bank transfers are completely free to send.
If you want to pay by credit card, you’ll be charged a fee of 2.9%. Same-day delivery ACH transfers incur a fee of 1% (up to $30 USD) while fast checks have a flat fee of $20 USD per payment.
Likewise, international payments incur a flat fee of $20 USD.
With Melio, you can mail 2 checks per month free of charge. After that, mailed checks will incur a fee of $1.50 USD.⁹
Melio Pros and Cons
Here’s a summary of the pros and cons of Melio.
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What Are the Benefits of Melio?
The main advantage of Melio is how easy it makes bill payment. With automated bill capture, a variety of payment options and no need for payees to sign up, Melio simplifies the bill payment process.
The ability to split, combine and schedule payments, as well as automate recurring payments, makes bill payment more efficient.
Support for international transactions to 80+ countries also makes it easy to conduct international business, allowing you to find and pay the vendor best suited to your business, without worrying about borders.
Likewise, reliable customer support and relatively few fees make Melio a reliable, solid payment option.
What Are the Possible Drawbacks of Melio?
Despite supporting international transactions to 80+ countries, Melio isn’t the cheapest option when it comes to cross border business.
Its flat fee of $20 per payment could cost you a significant amount if international payments are a part of your business. On top of this, Melio supports USD transactions only, meaning you can’t pay vendors in their local currency. Neither can you receive invoice payments in foreign currencies, meaning you’ll have to pay currency conversion fees.
While Melio is a cost-effective option for businesses paying vendors within the US, there may be better alternatives to Melio when it comes to international business.
| 💡 Wise Business is a safe and low-cost way to send international payments to 160+ countries. |
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Can Melio do international payments?
Yes, Melio supports international payments in USD to 80+ countries, including Canada, the UK, New Zealand, and Australia.
Conclusion: Is Melio the best choice for your business?
Overall, if you're looking for an easy way to pay vendors and invoice customers within the US, while increasing cash flow and making your accountant’s life easier, Melio can be a great option.
But if you’re dealing with international vendors or customers on a regular basis, then there may be better alternatives to Melio, which will save you on international fees.
Discover Wise Business: The Low-Cost Way to Send and Receive Cross Border Payments
With Wise Business, you can create unlimited international invoices for free using the invoice generator tool. It's also easy to send payments to 160+ countries. And when it comes to receiving payments, you can forget about high international fees eating into your revenue.
Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. You can access up to 9 local account details for a low one-time fee. Using these account details, you can receive payments from foreign customers at the same speed and cost as a local.
When you want to convert your funds, you’ll have your money exchanged at the mid-market rate, with no hidden fees. You can also hold multiple currencies all in one place and convert between them with ease.
You can connect QuickBooks, Xero, and FreshBooks to your Wise Business account, allowing you to track payment flows and make accounting easy.
Sources:
- Melio Reviews | Read Customer Service Reviews of meliopayments.com
- Melio
- Accept Payments Online and Get Paid on Time | Melio
- What countries are open to international payments through Melio?
- Easy Bill Capture | Melio
- Melio
- Melo requests
- Security - Melio Payments
- Payment Platform Pricing for Businesses and Accountants | Melio
- Are there any limitations when making a payment to an international vendor? – Melio
All sources checked December 7, 2023.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
