Melio

TL;DR

Streamlines accounts payable and receivable with AI-powered automation and multi-payment options
Saves businesses 15+ hours monthly through automated workflows and accounting integrations
Designed for small to mid-sized businesses, accounting firms, and high-volume operations
Free forever plan available with paid tiers starting at $20/month

What is Melio

Melio is an AI-powered accounts payable and receivable platform that simplifies payment processing for small and medium-sized businesses. As a comprehensive financial automation tool, it enables businesses to pay vendors, contractors, and bills using multiple payment methods including ACH transfers, credit cards, wire transfers, and checks - all from a single dashboard. The platform leverages artificial intelligence for automatic bill capture, intelligent payment routing, and workflow optimization, helping businesses save an average of 15 hours monthly on payment-related tasks. With seamless integrations to QuickBooks, Xero, and other accounting software, Melio maintains synchronized financial records while providing advanced features like international payments, approval workflows, and automated 1099 filing.

Key Features

AI-Powered Bill Capture: Automatically scans and imports bills from Gmail, uploaded documents, or forwarded emails, extracting key payment information to eliminate manual data entry and reduce errors by up to 90%.
Multi-Payment Method Support: Pay vendors using ACH transfers, credit cards (even where cards aren't accepted), wire transfers, or paper checks, while vendors receive payment in their preferred method regardless of how you pay.
Automated Accounting Sync: Two-way synchronization with QuickBooks Online, QuickBooks Desktop, and Xero ensures all transactions, vendor information, and payment records stay updated across platforms in real-time.
Instant Payment Processing: Send fast ACH transfers or expedited checks that reach vendors within minutes, ensuring critical payments are never delayed and maintaining strong vendor relationships.
Custom Approval Workflows: Create multi-level approval chains with role-based permissions, allowing teams to delegate payment tasks while maintaining control over financial decisions and spending limits.
International Payment Capabilities: Pay global vendors in over 30 currencies with competitive exchange rates and transparent fees, making cross-border transactions as simple as domestic payments.
Automated Tax Compliance: Collect W-9 forms digitally and sync 1099 data directly to tax1099.com, streamlining year-end tax preparation and reducing compliance risks.
Mobile Payment Management: Full-featured iOS and Android apps enable payment creation, approval, and tracking on-the-go, ensuring business continuity even when away from the office.
Batch Payment Processing: Schedule and process multiple payments simultaneously, with the ability to combine multiple bills to the same vendor into a single transaction for efficiency.
Custom Payment Links: Generate branded payment links in under 2 minutes for accounts receivable, allowing customers to pay via ACH or credit card with flexible fee allocation options.

Who is Melio for?

Small Business Owners: Particularly those managing 10-100 monthly transactions who need to streamline payment processes without hiring dedicated AP/AR staff
Accounting Firms: CPAs and bookkeepers managing multiple client accounts who need centralized payment management with granular access controls
Professional Service Providers: Law firms, consultants, and agencies requiring approval workflows and detailed payment tracking for client billing
Food & Beverage Businesses: Restaurants, cafes, and suppliers dealing with numerous vendors and requiring fast payment options for perishable goods
Construction Companies: Contractors managing subcontractor payments, requiring 1099 automation and approval hierarchies for project-based spending
E-commerce & Retail Operations: Online and brick-and-mortar retailers needing to manage supplier payments across multiple locations or channels
Healthcare Practices: Medical offices and clinics requiring HIPAA-compliant payment processing with detailed audit trails
Nonprofit Organizations: Charities and foundations needing transparent expense management with multi-user approval capabilities
High-Volume Businesses: Companies processing over $100k monthly in payments seeking enterprise features with preferential pricing

Key Use Cases & Applications

Automating Vendor Payment Workflows: Streamline recurring payments to suppliers, contractors, and service providers with scheduled ACH transfers and automated approval routing based on payment amounts or vendor types
Managing Cash Flow with Payment Flexibility: Use credit cards to pay vendors who only accept bank transfers, extending payment terms by 30-60 days while vendors receive immediate payment
Scaling Accounts Payable Operations: Growing businesses can add team members with specific roles and permissions, creating approval hierarchies that maintain control while delegating data entry tasks
Simplifying Tax Compliance: Automatically collect W-9 forms from new vendors and sync 1099 data for year-end reporting, reducing manual tax preparation work by up to 80%
Accelerating International Expansion: Pay overseas suppliers and contractors in their local currency with transparent FX rates, eliminating the complexity of international wire transfers
Creating Professional Invoice Workflows: Generate branded invoices with custom payment links, allowing clients to pay instantly via ACH or credit card while maintaining professional appearance
Consolidating Multi-Entity Finances: Accounting firms managing multiple client accounts can maintain separate payment workflows and approval chains while viewing all activity from a central dashboard
Emergency Payment Processing: Use instant payment features to handle urgent vendor payments or avoid late fees, with funds arriving in minutes rather than days

Pros

Significant Time Savings: Users report saving 15+ hours monthly through automation features like AI bill capture, batch processing, and accounting sync, freeing up time for revenue-generating activities
Flexible Payment Options: The ability to pay by credit card even when vendors don't accept cards, plus instant payment options, provides unmatched cash flow flexibility
Robust Free Plan: Unlike competitors, Melio offers a genuinely useful free forever plan with 5 ACH payments monthly, making it accessible for micro-businesses and startups
Seamless Accounting Integration: Native two-way sync with QuickBooks and Xero eliminates duplicate data entry and reconciliation headaches
Enterprise-Grade Security: PCI-DSS Level 1 compliance, multi-factor authentication, and 24/7 monitoring provide bank-level security for sensitive financial data
No Vendor Enrollment Required: Vendors receive payments without needing to sign up for Melio, reducing friction and accelerating adoption
Transparent Pricing: Clear tier structure with no hidden fees, and the ability to choose who pays credit card processing fees
Award-Winning User Experience: Multiple G2 and Capterra awards for ease of use and customer satisfaction reflect the platform's intuitive design

Cons

Credit Card Fees: The 2.9% fee for credit card payments, while standard, can add up quickly for businesses with high transaction volumes
Limited International Coverage: International payments are only available in select currencies, which may not cover all global vendor relationships
Learning Curve for Advanced Features: While basic functions are intuitive, features like custom approval workflows and batch processing require time to master
Mobile App Limitations: Some advanced features like complex approval workflows are better suited for desktop use rather than mobile
ACH Payment Limits on Lower Tiers: Free and starter plans cap free ACH payments at 5-20 per month, potentially forcing upgrades for growing businesses
No Direct Bank Feed: Unlike some competitors, Melio doesn't offer direct bank transaction imports, relying instead on accounting software integration
Limited Customization for Enterprise: Very large enterprises may find the workflow customization options insufficient compared to dedicated ERP systems

Pricing Info

Free Forever
- Limited to one user
- 5 free ACH payments per month
- Basic bill pay and invoicing features
- AI bill capture included
Starter (Monthly)
- $2.50/month for first 3 months
- $10/month per additional user
- 20 free ACH payments per month
- QuickBooks and Xero sync
- Approval workflows and batch payments
Starter (Annual)
- $2/month for first 3 months
- $8/month per additional user
- Same features as monthly plan
- Billed annually
Premium (Monthly)
- $5.50/month for first 3 months
- $10/month per additional user
- 50 free ACH payments per month
- Advanced user roles and custom workflows
Premium (Annual)
- $4.40/month for first 3 months
- $8/month per additional user
- Billed annually
Platinum (Monthly)
- $8/month for first 3 months
- Unlimited users
- Unlimited free ACH payments
Platinum (Annual)
- $6.40/month for first 3 months
- Unlimited users
- Billed annually
Enterprise - Custom pricing
- Preferred pricing for high-volume businesses
- Transaction fees apply

FAQs

How quickly can vendors receive payments through Melio?

Payment speed depends on the method chosen. Instant transfers arrive within minutes (subject to eligibility), fast ACH payments typically arrive within 1-2 business days, standard ACH takes 3-5 business days, and paper checks arrive in 5-7 business days. Vendors don't need a Melio account to receive payments.

Can I use Melio if my accounting software isn't QuickBooks or Xero?

Yes, you can use Melio without accounting software integration. The platform works as a standalone payment solution, allowing you to upload bills, manage vendors, and process payments. However, you'll need to manually record transactions in your accounting system without the automated sync feature.

What happens if I exceed the free ACH payment limits on my plan?

When you exceed your plan's free ACH limit (5 for Free, 20 for Starter, 50 for Premium), additional ACH payments cost $1 each. You can upgrade your plan at any time to increase your free ACH allowance, with Platinum offering unlimited free ACH payments.

Is Melio suitable for businesses that need to pay independent contractors?

Yes, Melio is ideal for paying contractors. It includes automated W-9 collection, 1099 form preparation, and integration with tax1099.com for filing. You can set up recurring payments, track contractor payments separately, and maintain detailed records for tax compliance.

How does Melio's credit card payment feature work if my vendor doesn't accept cards?

Melio charges your credit card and sends payment to your vendor via their preferred method (ACH, check, or wire). You pay a 2.9% fee, but vendors receive the full payment amount without any fees. This allows you to earn card rewards and extend payment terms even when vendors don't have card processing capabilities.

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