Melio
B2B payments platform that lets businesses pay vendors by bank transfer or credit card, even when vendors only accept checks.
About Melio
Melio handles the actual money movement in accounts payable, not just the workflow around it. The core function: pay any vendor by ACH or credit card, even vendors who only accept paper checks. Melio converts your credit card payment into a physical check mailed to the vendor. That single feature matters for firms managing cash flow — you capture card rewards or extend payment float by 30+ days while the vendor gets a check on their usual schedule. ACH transfers are free; credit card payments cost 2.9%. Batch payments let you approve and send dozens of vendor payments in one session, and multi-level approval workflows route bills to the right signatory before anything goes out. Melio fits solo bookkeepers, small CPA firms managing AP for clients, and small businesses with under 50 active vendors. The QuickBooks and Xero syncs are reliable for two-way bill and payment reconciliation. NetSuite and Sage integrations exist but are thinner — expect manual cleanup. The invoice capture feature uses OCR to pull vendor, amount, and due date from uploaded bills. It works well enough for straightforward invoices but stumbles on multi-line POs and non-standard layouts. If your clients run complex AP with purchase orders, three-way matching, or accrual workflows, Melio is not the right tool — look at Bill.com or Tipalti instead. The payments engine is strong; the AP automation layer is basic.
Best for
Small businesses and accountants who want simple, free bill payment with credit card flexibility
Key Features
- AI-powered invoice capture and data extraction
- Credit card to check conversion payments
- Free ACH bank transfers
- Multi-level approval workflows
- Batch payment processing
Pros & Cons
Pros
- Free ACH transfers with no monthly minimums or per-transaction fees for bank-to-bank payments
- Pays check-only vendors via credit card — Melio mails a physical check on your behalf, preserving vendor relationships while you use card float
- Two-way QuickBooks and Xero sync keeps bills and payments reconciled without double entry
- Batch payment runs let you approve and send multiple vendor payments in a single session, cutting AP processing time for firms with high transaction volume
- Multi-level approval workflows let bookkeepers queue payments for client or partner sign-off before funds move
- No setup fee and no contract — straightforward to onboard a new client and equally straightforward to offboard
Cons
- Credit card payments cost 2.9% per transaction — that fee compounds fast on large vendor bills and can erase card rewards value
- Invoice capture fails reliably on multi-line or non-standard bill formats; expect manual data correction for anything beyond simple invoices
- NetSuite and Sage integrations are shallow compared to QuickBooks and Xero — firms on those ERPs will hit reconciliation gaps
- No three-way matching, purchase order management, or accrual-based AP — firms with even moderate AP complexity will outgrow it quickly
- International payments are limited; cross-border vendor payments are not a core use case and coverage is inconsistent
- Vendor onboarding for ACH requires vendors to enter their own bank details, which some vendors resist or delay
Ledger Brief Take
Sits at the intersection of bill pay and AP automation, solving the specific pain point of paying check-only vendors with credit cards for cash flow benefits. The AI invoice capture feels secondary to the core payments engine, which genuinely differentiates from pure AP tools by handling the actual money movement rather than just workflow.
Frequently Asked Questions
Common questions accountants ask about Melio.
What does Melio actually cost?
ACH bank transfers are free with no monthly fee or transaction cap. Credit card payments cost 2.9% per transaction, charged to the payer. There is no paid tier for core bill pay — Melio monetizes through the card processing fee. No free trial period applies because the base product is already free.
How does Melio integrate with QuickBooks Online?
The QuickBooks Online integration syncs bills, vendors, and payment records in both directions. Bills created in QuickBooks appear in Melio for payment, and completed payments sync back as paid. The connection is OAuth-based and takes under five minutes to set up. QuickBooks Desktop is not supported.
How does Melio compare to Bill.com for accounting firms?
Bill.com charges per user and per transaction and includes stronger AP automation — document management, three-way matching, and deeper ERP integrations. Melio is free for ACH, has no per-user pricing, and focuses on payments over workflow. For simple bill pay with card-to-check conversion, Melio costs less. For firms managing complex AP across multiple clients with audit trails and PO matching, Bill.com is more capable.
Is Melio secure enough for client funds?
Melio holds a Money Transmitter License in applicable US states and uses 256-bit encryption for data in transit. Funds are held in FDIC-insured bank accounts during processing. Two-factor authentication is available. Melio does not hold client funds beyond the payment processing window.
Can accountants manage multiple clients inside one Melio account?
Melio offers an accountant-specific portal that lets bookkeepers and CPAs manage separate client payment accounts from one login. Each client's bills, vendors, and payment history stay isolated. The portal is free to access; the standard per-transaction fees apply per client account.
What happens if a vendor does not accept ACH?
Melio mails a paper check to the vendor on your behalf. You initiate the payment as normal — by bank transfer or credit card — and Melio handles check printing and mailing. Vendors receive a standard business check and do not need to create a Melio account or change any of their processes.