Melio

General Overview

Founded in 2018 and headquartered in New York, Melio focuses on simplifying bill payments and invoicing, offering free ACH bank transfers and a user-friendly interface that doesn’t require a subscription.

Unlike traditional accounting software like QuickBooks Online or Xero, Melio isn’t a full-fledged accounting solution but a specialized tool for managing payments, syncing seamlessly with accounting platforms like QuickBooks Online and Xero to keep financial records updated.

With over 150,000 businesses using Melio as of 2025, it’s particularly appealing for those looking to optimize cash flow without the overhead of complex software. Its ability to handle payments even for vendors who prefer checks—while keeping costs low—makes it a standout in the payment processing space, though it lacks features like payroll or comprehensive reporting found in broader accounting tools.

Pros and Cons

Usability and Setup

Melio is designed for ease of use, with a straightforward interface that minimizes the learning curve for non-accountants. Setup takes less than five minutes: users sign up via the website with an email address, verify their identity with basic business details (e.g., company name and address), and can start adding vendors or bills immediately.

No software download is required, as Melio operates entirely online or through its iOS and Android mobile apps. The dashboard is divided into “Pay” (for accounts payable) and “Get Paid” (for accounts receivable) tabs, making navigation intuitive. Users can upload bills manually, snap photos of invoices via the mobile app, or forward them to a Melio inbox for processing.

In-app prompts guide new users, and the platform’s clean design ensures quick access to payment scheduling and tracking. The mobile app mirrors the desktop experience, allowing users to manage payments on the go, though some advanced settings are desktop-only.

Compared to feature-heavy platforms like Sage 50cloud, Melio’s simplicity is a strength, but users needing comprehensive accounting may find it too focused on payments alone.

Pricing and Plans

Melio operates on a unique, non-subscription-based pricing model, setting it apart from traditional accounting software. Instead of monthly fees, Melio charges per transaction for certain payment methods, with many features available for free. As of June 2025, the pricing structure is as follows:

• Additional Costs:

  • Credit/debit card payments: 2.9% per transaction.

  • Check delivery: $1.50-$20 per check, depending on delivery speed.

  • International payments: Fees vary, but only USD payments are supported.

• Add-Ons: Optional features like auto-scanning receipts or snail mail credits for physical invoices cost extra.

• Trial: No free trial is needed, as core features are free to use without commitment.

Melio’s pricing is highly competitive compared to Xero ($15-$78/month) or Sage 50cloud ($62.50-$149.08/month), as there’s no upfront cost for ACH transfers. However, businesses using credit cards frequently or needing frequent check deliveries may face accumulating fees.

Main Features and Integrations

Melio focuses on payment processing rather than full accounting, offering a streamlined set of features to optimize AP and AR workflows. Here’s an in-depth look at its capabilities:

• Accounts Payable (AP): Users can pay vendors via ACH transfer (free), credit/debit card (2.9% fee), or check, even if vendors don’t use Melio—Melio handles check delivery. Bills can be added manually, uploaded, or photographed, with options to schedule payments for optimal cash flow. Approval workflows allow admins to set roles and permissions, ensuring control over large transactions.

• Accounts Receivable (AR): Melio enables businesses to send invoices with a customizable URL, including a “Pay Now” button for clients to pay via bank transfer or card. Payment tracking provides real-time updates on invoice status, helping businesses manage receivables efficiently.

• Bill Management: The platform simplifies bill entry with easy capture options (upload, photo, or email forwarding) and allows users to categorize payments for better organization. However, it doesn’t support payroll transactions or recurring bill setups.

• Payment Tracking: Real-time updates show payment statuses (e.g., sent, delivered, deposited), ensuring transparency for both payers and payees.

• Approval Workflows: Businesses can assign team roles, set permission-based access, and automate payment approvals, ideal for larger teams or those with strict financial controls.

• Mobile App: The iOS and Android app, updated in 2025, allows users to manage payments, upload bills, and track invoices on the go, with a 4.5/5 rating on both app stores for its functionality and ease of use.

• Security: Melio uses SHA 2048-bit encryption for data transfers and 256-bit encryption for databases, with 24/7 monitoring and Level 1 PCI-compliant card processing. Customer funds are held in protected bank accounts, and user controls allow permission customization.

• Tax Support: Melio helps prepare data for annual tax returns but doesn’t generate 1099 forms or support direct tax filings, requiring integration with accounting software for compliance.

Integrations: Melio integrates with a limited but strategic set of platforms, focusing on accounting software to complement its payment focus:

• Accounting Software: QuickBooks Online and Xero for automatic payment syncing, ensuring financial records stay updated without manual entry.

• Payment Processors: Stripe, PayPal, and Plaid for connecting bank accounts (e.g., Chase, Citibank) and processing payments.

• Tax Software: Tax1099 for tax-related data preparation.

Compared to Xero’s 1,000+ integrations or QuickBooks Online’s 750+, Melio’s integration list is smaller, but its focus on core accounting platforms meets the needs of most small businesses. A detailed feature comparison across its plans is less relevant since Melio doesn’t use tiered subscriptions, but here’s a breakdown of key features available to all users:

Support Options

Melio offers support via live chat and email, accessible directly from the platform or at [email protected], but it lacks phone support, which may be a drawback for users needing immediate help.

The live chat is responsive, typically addressing queries within minutes, and the help center provides detailed articles, FAQs, and guides on topics like bill setup and payment tracking. A blog covers bookkeeping and small business tips, adding value for users seeking advice.

Melio’s support has a 4.3/5 rating on Trustpilot based on over 5,000 reviews as of 2025, with users praising its ease of use but noting occasional delays for complex issues. Accountants managing multiple clients benefit from dedicated resources in the Accountant Plan, including setup assistance. While support is reliable for payment-related queries, businesses needing comprehensive accounting help may rely on their integrated accounting software’s support instead.

Conclusion

Melio is an excellent choice for small businesses, freelancers, and accountants seeking a free, user-friendly platform to manage accounts payable and receivable without the overhead of full accounting software.

Its free ACH transfers, unlimited users, and seamless integration with QuickBooks Online and Xero make it a cost-effective solution for optimizing cash flow and streamlining payments. The mobile app and approval workflows further enhance its appeal for teams needing flexibility and control. However, its focus on payments means it lacks features like payroll, bank reconciliation, or robust reporting, requiring users to pair it with accounting software for complete financial management.

The absence of phone support and limited international payment options (USD only) may also be drawbacks for some. For businesses prioritizing payment efficiency over comprehensive accounting—such as consultants, retailers, or startups—Melio is a standout, offering simplicity and value that complements broader tools like Xero or Zoho Books. It’s a strong addition to your comparison website for users looking to simplify bill payments without breaking the bank.