PaySec + Xero: Beautiful Accounting Meets Zero Processing Fees
How businesses using Xero are integrating PaySec's Network Offset Pricing to eliminate payment processing costs while maintaining perfect financial records.
Xero has earned its reputation as the modern accounting platform — clean interface, powerful automation, and seamless bank connections. But if you're collecting payments through Xero's integrated payment options (Stripe, GoCardless, or other gateways), you're paying processing fees that chip away at every invoice payment.
PaySec's Xero integration brings Network Offset Pricing to your invoicing and payment collection — so the payment processing cost disappears from your P&L entirely.
The Processing Fee Reality for Xero Users
Most Xero-connected payment processors charge:
| Provider | Card Rate | ACH/Direct Debit |
|---|---|---|
| Stripe (via Xero) | 2.9% + $0.30 | 0.8% ($5 cap) |
| GoCardless | N/A | 1% + $0.20 |
| Square | 2.9% + $0.30 | N/A |
For a business invoicing $25,000/month via card payments:
| Monthly Volume | Rate | Monthly Cost | Annual Cost |
|---|---|---|---|
| $25,000 | 2.9% + $0.30 | $760 | $9,120 |
| $50,000 | 2.9% + $0.30 | $1,495 | $17,940 |
| $100,000 | 2.9% + $0.30 | $2,960 | $35,520 |
How PaySec Works with Xero
Integration Architecture
PaySec connects to Xero via OAuth 2.0 API integration, providing:
- Invoice payment processing — customers pay invoices via PaySec with NOP pricing displayed
- Automatic payment matching — payments reconcile against outstanding invoices automatically
- Transaction sync — all PaySec transactions appear in your Xero bank feed
- Contact sync — customer records stay consistent between platforms
Invoice Payment Flow
When you create an invoice in Xero and send it to your customer:
- Customer receives invoice email with "Pay Now" button
- Payment page shows dual pricing:
- ACH/Bank Transfer: Invoice amount (e.g., $2,500.00)
- Credit/Debit Card: Card price (e.g., $2,600.00)
- Customer selects payment method and completes payment
- Xero automatically marks the invoice as paid
- Transaction appears in your Xero bank feed for reconciliation
Reconciliation
PaySec transactions flow into Xero through your connected bank account. The integration provides:
- Transaction references matching invoice numbers
- Automatic suggested matches in Xero's reconciliation view
- Proper categorization of payment income
- No processing fee expense entries (because there are no fees)
Key Features
Repeating Invoices
For subscription or retainer clients on Xero repeating invoices:
- Network Offset Pricing applies to each recurring payment
- Customers are informed once at setup; pricing remains consistent
- Automatic billing with dual pricing on every cycle
Multi-Currency (Coming Soon)
Xero's multi-currency support pairs with PaySec for businesses invoicing internationally. USD processing available now; additional currencies on the roadmap.
Quotes to Invoices
PaySec's pricing display carries through Xero's quote-to-invoice workflow. When a quote is accepted and converted to an invoice, the payment options reflect Network Offset Pricing automatically.
Xero Projects Integration
For businesses using Xero Projects for time and expense tracking, PaySec processes the resulting project invoices with the same zero-fee pricing model.
Who Benefits Most
Agencies and Consultants
Professional services firms billing hourly or project-based work through Xero invoices. High invoice values mean significant per-transaction savings.
Trades and Construction
Builders, electricians, plumbers using Xero for job costing and invoicing. Large progress payments and final invoices generate substantial processing fees.
SaaS and Subscription Businesses
Companies using Xero repeating invoices for subscription billing. Monthly fees compound across the entire subscriber base.
Creative Professionals
Designers, photographers, videographers using Xero to manage client billing. Project payments of $1,000-$10,000+ are expensive to process at 2.9%.
Savings Comparison
| Business Type | Monthly Invoicing | Annual Fee (Current) | Annual Fee (PaySec) | Savings |
|---|---|---|---|---|
| Consulting firm | $45,000 | $15,660 | ~$0 | $15,660 |
| Construction co. | $120,000 | $41,760 | ~$0 | $41,760 |
| Design agency | $22,000 | $7,656 | ~$0 | $7,656 |
| SaaS (200 clients) | $18,000 | $6,264 | ~$0 | $6,264 |
Technical Specifications
| Feature | Details |
|---|---|
| Xero Plan | All plans (Starter, Standard, Premium) |
| Connection | OAuth 2.0 (secure, revocable) |
| Sync Frequency | Real-time for payments; hourly for reconciliation |
| Invoice Types | Standard, repeating, credit notes |
| Payment Methods | Card (Visa, MC, Amex, Discover), ACH |
| PCI Compliance | Level 1 — card data never touches Xero or your server |
| Multi-Org | Supported — connect multiple Xero organizations |
Getting Started
- Sign up for a PaySec merchant account
- Connect Xero from PaySec's integration dashboard (OAuth flow)
- Configure payment page branding and pricing display
- Send your first invoice with PaySec payment link
- Watch the payment arrive — zero fees, automatically reconciled
Migration from your current Xero payment provider is seamless. PaySec's team handles the cutover so your customers experience no interruption.
PaySec + Xero gives modern businesses the accounting automation they expect and the zero-processing-fee economics they deserve.