Running a business means dealing with bills, invoices, and payments – lots of them. If you’re tired of juggling paper checks and bank transfers, Melio might be the solution you’ve been looking for. But what is Melio exactly, and is it right for your business?
Let’s dive into everything you need to know about this popular payment platform that’s helping small businesses streamline their accounts payable and receivable processes.
What is Melio? Quick Overview
What is Melio? At its core, Melio is a payment management platform designed specifically for small businesses. It lets you pay bills your way while your vendors get paid their way. Think of it as the middleman that makes paying bills easier, faster, and more flexible.
Melio stands out because it lets you pay any vendor using your preferred payment method – even if your vendor only accepts checks. You can pay by ACH bank transfer, credit card, or debit card, and your vendor will receive the money via direct deposit or good old-fashioned paper check in the mail.
The platform earned a solid 4.4/5 rating on Trustpilot, with users particularly praising its ease of use and helpful customer service.
What is Melio, and how does it work?
What is Melio’s process for paying bills? It’s refreshingly simple:
- Create an account on the Melio platform
- Upload your bill or invoice – either by taking a photo or manually entering details
- Choose how you want to pay – ACH transfer, credit card, or debit card
- Select when to pay – schedule it for the due date or set up recurring payments
- Choose how your vendor gets paid – direct deposit or check in the mail
The beauty of this system is that your vendors don’t need to sign up for Melio to receive payments. They simply get paid through methods they already accept.
Beyond just sending payments, Melio also lets you receive payments from customers and send invoices, making it a comprehensive solution for your business’s cash flow management.
Melio Key Features
What is Melio offering that makes it stand out from other payment solutions? Here are the key features that make Melio worth considering:
- Accounting software integration – Syncs with QuickBooks, Xero, FreshBooks and more
- Multiple payment options – Pay via ACH, card, or bank transfer
- Bill tracking – Easily monitor payment status and history
- Batch payments – Pay multiple vendors at once
- Split payments – Use different payment methods for different parts of a bill
- Scheduled payments – Set it and forget it with automated recurring payments
- International support – Make payments to over 80 countries
Ease of Use
Melio shines when it comes to user-friendliness. The platform features:
- AI-powered bill capture that automatically extracts information from invoice scans
- Dedicated email inbox for vendors to send invoices directly
- Batch payment options that let you pay multiple bills with one click
- Custom branding for invoices with your company logo
- Payment links that speed up how quickly customers can pay you
The intuitive dashboard makes it easy to see what bills are coming due and which have been paid, giving you better visibility into your cash flow.
Customer Service
Melio offers support through multiple channels:
- Help center with guides and FAQs
- Live chat available Monday through Friday, 9AM to 8PM EST
- Online query submission form
Users frequently mention the quality of Melio’s customer service in reviews, noting that representatives are friendly and helpful when resolving issues.
Security
When it comes to moving your money around, security matters. Melio uses industry-leading security measures including:
- SOC 2 Type 2 certification
- ISO 27001, 27017, and 27018 certifications
- PCI Level 1 certification for card data protection
These certifications mean your financial data and transactions are protected to the highest standards.
How much does Melio cost?
One of the most appealing aspects of Melio is its straightforward pricing structure:
- Account creation: Free
- Monthly subscription: None
- ACH bank transfers: Free
- Credit card payments: 2.9% fee
- Mailed checks: First 2 per month free, then $1.50 each
- Same-day ACH transfers: 1% fee (up to $30)
- Fast checks: $20 flat fee
- International payments: $20 flat fee
With no monthly fees or subscription costs, Melio operates on a pay-as-you-go model that works well for businesses of all sizes. You only pay for the premium services you actually use.
Melio Pros and Cons
Let’s break down what makes Melio shine and where it could improve.
What Are the Benefits of Melio?
- Flexibility in payment methods – Pay your way, even if vendors only accept checks
- No subscription fees – Free to sign up and maintain an account
- Unlimited users – Add your whole team at no extra cost
- Customizable approval workflows – Set permissions for different team members
- Credit card payments to anyone – Earn rewards points on business expenses
- Accounting software integration – Saves time on bookkeeping and taxes
- Scheduled and recurring payments – Set it and forget it
- Cash flow management – Use credit cards to extend your payment terms
For small businesses looking to streamline their accounts payable process, these benefits can translate to significant time savings and better cash flow management.
What Are the Possible Drawbacks of Melio?
- Credit card fee – The 2.9% processing fee can add up for large payments
- International payment limitations – USD only, with a $20 flat fee per transaction
- Payment delivery times – Some users report delays in payment delivery
- Limited international payment methods – Only bank transfers or Mastercard accepted
- No mobile app – Primary interface is web-based
While these drawbacks might affect some businesses more than others, they’re worth considering when evaluating if Melio is right for your needs.
Can Melio do international payments?
Yes, Melio supports international payments to over 80 countries including Canada, the UK, Australia, and New Zealand.
However, there are a few limitations to keep in mind:
- International payments can only be made in USD
- Each international transaction carries a $20 flat fee
- You can only use bank transfers or Mastercard credit cards for international payments
If your business regularly makes international payments, especially smaller ones, the $20 flat fee might make Melio less cost-effective than some alternatives like Wise Business.
Conclusion: Is Melio the best choice for your business?
After exploring what is Melio and how it works, the answer to whether it’s right for your business depends on your specific needs.
Melio is likely a great fit if:
- Your business primarily operates within the US
- You want to streamline bill payments and invoicing
- You value accounting software integration
- You’d like to earn credit card rewards on business expenses
- You need flexible payment options for your team
You might want to consider alternatives if:
- Most of your vendors are international
- You need to make frequent small international payments
- You require payments in multiple currencies
- Mobile app access is essential for your workflow
Overall, Melio offers an impressive set of features at a competitive price point, especially for US-based small businesses. With no monthly fees and free ACH transfers, it’s certainly worth testing out to see if it can simplify your payment processes.
What is Melio? It’s a potential game-changer for how your business handles payments – saving you time, improving cash flow, and making your accountant’s life much easier in the process.
FAQs About What Is Melio
Is Melio safe to use?
Yes, Melio employs industry-standard security protocols including SOC 2 Type 2 and ISO certifications. All sensitive financial data is encrypted, and their payment processor is PCI Level 1 certified for handling card information.
Does my vendor need a Melio account to receive payment?
No! That’s one of the best features of Melio. Your vendors receive payments via direct deposit or paper check without needing to create or manage a Melio account.
How long do Melio payments take?
Standard ACH transfers typically take 3-5 business days. Same-day ACH (with a 1% fee) is available for urgent payments. Paper checks usually arrive within 5-7 business days, while expedited “fast checks” (for a $20 fee) arrive in 2-3 business days.
Can I use Melio for personal payments?
Melio is specifically designed for business use and is not intended for personal payments. For personal transfers, services like Venmo, PayPal, or Zelle would be more appropriate.
How does Melio compare to PayPal or QuickBooks Payments?
Unlike PayPal, Melio specializes in business bill payments and offers check payments to vendors who don’t accept digital payments. Compared to QuickBooks Payments, Melio offers more flexibility in payment methods and typically charges lower fees for similar services. Melio also integrates with multiple accounting software platforms, not just QuickBooks.
Can I pay taxes using Melio?
Yes, you can use Melio to pay business taxes. However, if using a credit card, the 2.9% processing fee will apply, which may make this option less attractive than paying directly through official tax payment channels.
What happens if a payment fails or is returned?
If a payment fails, Melio will notify you promptly, and the transaction will be canceled. Depending on the reason for failure, you may be able to retry the payment using a different payment method. Melio may charge a returned payment fee in some circumstances.
Want a breakdown on Melio’s price? Learn more about it here.
