Melio Review & Testing – Is It Worth It?

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Digital payments can save your business a lot of time, money, and legwork. Unfortunately, the US doesn’t yet have a universal payment infrastructure that’ll allow you to make and receive digital payments from any client or vendor.

That’s the gap Melio is trying to bridge – in our Melio accounting review, we look at the use cases for this digital B2B payment solution for modern businesses.

You can use Melio for free and only pay for certain types of transactions. We found it to be surprisingly powerful and not just a barebones payment app. While it lacks advanced accounting features, Melio promises to make your vendor payments easier to manage, improving your cash flow.

Let’s break down why it’s worth trying Melio in 2024.

Melio Pros and Cons

Before we share our hands-on experience with Melio payments and its features, here’s a quick look at its pros and cons:

What Is Melio Accounting?

Melio Accounting is a digital business-to-business (B2B) payments platform that lets you make and receive payments online, no matter who’s on the other end of the transaction. Even if they don’t support online payments, Melio finds a way to enable B2B fund transfers in an incredibly flexible manner.

At the core of Melio accounting is a serverless platform built on Amazon Web Services (AWS), one of the largest public cloud providers in the world. Using this infrastructure and the company’s partnership with leading telcos like Verizon and AT&T, Melio enables fast payments and cross-border transactions.

Melio is different from other popular accounting apps in that it doesn’t just help you record transactions. You can use the tool to make payments to all your vendors and also receive payments if you’re a business.

However, the best thing about Melio is that it’s completely free. That’s right – in our Melio accounting review, we found that you only have to pay transaction fees, and that too for only certain payment types. Moreover, you can integrate Melio’s payment service with a variety of accounting apps.

This allows you to build your custom, modular digital business management system with Melio’s flexible payments right at the center.

Is Melio Legit?

Melio is legitimate payments and accounting software with hundreds of employees and several million dollars in investment. It’s hosted on the globally renowned AWS platform and follows stringent security and compliance standards.

If you’re still wondering, ‘Is Melio legit? ‘ Consider that the company has attracted 16 investors so far, including the venture capital arms of Salesforce and American Express. This is because the company has a unique and compelling value proposition, which helped it raise $250 million in its latest Series D funding round.

To further reaffirm its legitimacy, Melio is compliant according to SOC2 Type II and ISO/IEC 27001 standards. This means it’s committed to safeguarding your data and has set up a robust information security management system.

It has two more certifications worth noting – ISO/IES 27017, which governs the security of cloud-delivered services, and ISO/IES 27018, which protects the privacy of your personally identifiable information held in the cloud.

Apart from this, Melio monitors 24/7 for any suspicious activity and enforces multi-factor authentication. It’s also PCI-compliant, which should put your mind at ease about whether or not Melio is safe.

Key Melio Features

Now let’s get down to the nitty-gritty. Despite being a pure-play payment platform (and not a full-fledged accounting app), Melio has a number of impressive capabilities under its hood. Here are the highlights:

1. Accounts Payable (AP)

The Melio software lets businesses make vendor payments and organize their transactions using its well-designed dashboard.

You can set up recurring payments to your regular vendors, collate your monthly payments into one big chunk, or even pay multiple bills from one vendor together. The best part is the beneficiary doesn’t need a Melio account, which makes it suitable for a wide range of AP transactions.

2. Accounts Receivable

Melio is a B2B payments platform, which means that you can accept payments from other businesses, too.

After you’ve sent your client a Melio-generated payment link, they’ll have the option to pay however they like. You can then track the transaction from your dashboard – as it progresses through the ‘sent,’ ‘reminder,’ ‘processing,’ ‘processed,’ and ‘complete’ stages.

Like vendors, your clients don’t need a Melio account to pay you.

3. Approval Workflow Automation

Despite being a payment software, we were happy to see that Melio has some collaboration capabilities. You can’t create tasks or share files like some of the other accounting apps, like Bonsai. But then again, Melio is completely free, and you can add unlimited users without paying extra.

When you add a new team member, you’ll be asked to assign them a role (contributor, accountant, freelancer, or admin). Then, you can add them to any payment workflow, including recurring ones.

Melio will automatically ask everyone to sign off on the payment before processing it, and team members can even approve multiple payments at once from their dashboard.

4. Flexible Bill Capture

Melio gives you four options when it comes to adding your supplier bills:

If you’re planning to upload invoices from your phone storage, bear in mind that Melio supports only PDF and JPG files. Therefore, you might need to convert files to DOCX and other incompatible formats.

5. International Payments

We found this to be one of Melio’s most useful features.

As the world becomes more globalized and remote work breaks hiring borders, companies are increasingly working with freelancers and agencies in other countries. Melio lets you pay these vendors easily for a flat fee of $20 per transaction.

Our Melio accounting review found that international payments can be made only via bank transfer or Mastercard; Visa, American Express, or Discover aren’t supported.

To use this feature, you need the vendor’s SWIFT or IBAN number, account number, and bank name. With these details, you can simply add the payment to your regular workflow, schedule recurring payments, or even clear international invoices in bulk.

Currently, Melio supports payments to 30+ countries worldwide, including the UK, India, Australia, France, and Japan. Note that several major regions where you might have vendors aren’t supported, like Egypt or Bangladesh.

6. Accountant Dashboards

Melio is a great fit for accountants and firms handling client payments. If businesses outsource their payment tasks and schedules to you, you can use the software to track processes, add team members, and create workflows.

7. Deferred Payment Options

Melio allows you to set up a payment schedule so you can pay your vendors over time, but they’ll receive the funds immediately, according to their usual schedule.

In our Melio accounting review, we found this feature similar to a credit line facility meant to help with business cash flow. To offer this facility, Melio partners with Credit Key, a California-based financial information Company.

When you’re paying a vendor but don’t want to shell out the full amount at once, you can choose to pay in one to 12 installments. Fees for this service will differ from one user to another—they’ll be calculated as a percentage of the total bill amount, the number of installments, and the results of your application with Credit Key.

The feature is simple and easy to use. When you make a transaction, choose to pay over time, and Melio will ask you about your business ownership details the first time you apply.

Once you add your business information, the app will run a soft credit check that doesn’t affect your credit score. This will decide the fees you have to pay.

Melio is transparent about the repayment terms and has no hidden charges. Once you complete the process and schedule the payment, the vendor is paid immediately. Melio then slowly deducts the amount from your pre-verified bank account throughout the installment duration.

8. Card Payments for Any Bill

One of Melio’s main use cases is paying vendors with credit cards where card payment is typically not available.

Small businesses, sole traders, and other suppliers may not always accept digital transactions. In that case, you can pay via Melio – at the vendor’s end, they can choose how they want to receive the funds: via bank transfer, a single-use virtual card, or a snail-mailed check (USPS or FedEx).

Everything you spend on credit cards is eligible for future rewards and cashback. We also liked Melio’s interactive savings calculator, which helps you estimate exactly how much you benefit from making all your payments by card.

9. Payment Link

Since Melio is a B2B payment solution, you can receive and send funds. The best part is that you don’t need to send a detailed invoice every time you want to get paid. The Melio accounting software generates a secure payment link that looks like this: melio.me/yourbusiness.

You can add this link to your website, invoices, app, e-commerce store, or even a physical store or kiosk. When customers visit the link, they’ll be prompted to pay via bank transfer (free) or credit card (2.9% fee).

The biggest benefit of using this feature is that it keeps your account details safe. Customers won’t see any of your banking information, and if an invoice were to fall into the wrong hands, your privacy and security would be protected.

Melio does generate custom links for every transaction, but this is different from your business payment link. If you want to share a custom link for a specific amount, you can choose this option when you raise an invoice and send a payment request (see Step 4 of ‘How to Use Melio for Accounting: Beginner’s Guide’).

10. Accounting Integrations

While we appreciate that Melio integrates with other accounting software, our tests left us feeling disappointed with its interoperability options. Currently, you can hook up Melio with only QuickBooks and Xero, and there’s no integration marketplace to choose from.

However, when it comes to QuickBooks and Xero, the software offers native integrations with two-way data flow.

To connect Melio with one of these platforms, head to ‘Settings’ > ‘Accounting Software Sync’ > ‘Connect’ to Xero or QuickBooks and enter your login information. No download or installation is required.

It’s worth noting that in addition to accounting software, Melio recently partnered with Shopify to build the Shopify Bill Pay platform.

Like Melio’s native platform, it’s also a B2B payment service—the only difference is that it’s meant for e-commerce merchants looking to pay their vendors. Thanks to Melio, they can now do this without leaving their Shopify store’s admin portal.

11. Network of Billers

In the US, billers are companies that charge customers monthly fees for ongoing services. You likely pay several billers every month. Melio lets you make all of these payments from one place via card or bank transfer.

In our Melio accounting review, we found that the software supports four kinds of billers – telecom companies, utilities, financial institutions, and a variety of local vendors (e.g., Uline Shipping and Brewers Supply Group).

To use this feature, you need to add your invoice or import it from your accounting software. Then, find your biller from the drop-down list – Melio will automatically fetch the biller’s bank information so you can quickly make the payment.

Melio Pricing and Plans – How Much Is It?

We found Melio’s pricing model to be very interesting, given that most accounting software costs between $15 and $25/month, minimum. In contrast, Melio is a free B2B payment platform you can use free of charge and pay only for certain types of transactions. These include:

Apart from these payment modes, everything else is free in Melio. In fact, you can even pay your vendors for free as long as you use the bank transfer via the ACH method. For perspective, the popular payment platform Stripe costs $1 for every ACH transaction.

Apart from this, features like unlimited users, accounting software sync, approvals, bill capture, and data export are available for free with every Melio account.

This also includes Melio customer service, which is available on live chat during work hours. You can submit a request and expect a response within 24 hours.

Notably, unlike many other payment platforms, such as Stripe and PayPal, Melio’s pricing structure is simple and easy to understand. When you initiate a payment, you’ll see the transaction fee right at the bottom, so you know how much you’re paying out of pocket.

Melio Accounting Software Interface & Ease of Use

Melio is primarily a web-based application with an excellent responsive design that renders well on mobile devices. The company also offers an iOS app for certain functionalities; the Android version is coming soon.

Like most cloud-based software, Melio is a web app that you can access by simply visiting app.meliopayments.com from any browser on any device. The company has designed the interface to be extremely mobile-friendly. We found the web app experience on our phone to be as seamless as a native, downloaded app experience.

On the desktop, you’ll be directed to a clean, minimalist web app that follows the MacOS aesthetic. The four key modules are on your left—’ Pay,’ ‘Get Paid,’ ‘Contacts,’ and ‘Settings’—business details are on the top, and the main controls occupy most of the window.

You’ll be spending a lot of your time in the ‘Settings’ module, as this is where you can configure features, add users, sync software, and more.

The ‘Pay’ module is where you’ll find a centralized inbox of your bills, scheduled payments, and vendors you’ve already paid.

The ‘Get Paid’ module covers invoicing and accounts receivable. It categorizes payments based on their status so you can estimate your cash flow even if the funds aren’t credited yet.

The ‘Contacts’ module is a consolidated directory of your vendor and customer details. You can select a contact to configure how they pay/are paid, view payment history, and update their contact information.

The web-based software is simple and easy to use, requiring no training. If you do need help, Melio has a competent help center and knowledge repository (built on Zendesk) where you’ll find answers to most of your questions.

For mobile usage, Melio offers an iPhone app with limited functionalities. You can scan and upload bills, add payment details, modify vendor contacts, and also cancel, approve, and decline payments. Notably, features like integration and approval workflows are missing.

On the upside, the app was specifically designed for the iPhone, which makes it highly intuitive and a pleasure to use. Melio accounting reviews on the Apple App Store give it a 4.6/5 for the mobile app. You’re likely to find everything you need to manage your payments on the go.

Android users, however, will need to use the Melio web app from their mobile browser for now. The company plans to launch its Android app in 2024.

Melio vs Top Accounting Software

Choosing accounting software can be a tough decision. Multiple factors are involved, from your budget to technology compatibility. With financial services, you also risk vendor lock-in as so much of your data and processes are intertwined with whichever accounting app you’re using.

So, to help you make an informed decision, we’ve compared today’s leading payment and accounting tools available in the US. Here’s how they compare to Melio:

Xero and FreshBooks are suitable for businesses that need a complete accounting software package, with payroll and client management rolled right in. Zoho is excellent for UK and Indian businesses due to its VAT and GST features. To compare these tools further, read our FreshBooks review and Zoho Books review.

However, if you’re searching for a near-universal payment solution that’ll support receivables as well as payables – and an in-app credit line – it’s hard to beat Melio.

Melio Accounting Reviews – What Are Customers Saying?

To ratify our inferences from our hands-on Melio tests, we analyzed customer reviews on major forums. On G2, it earns a rating of 4.6/5 based on 150+ reviews. Users appreciate the simple and easy-to-use UI, but they note that there are still improvements to be made in integration capabilities and international payments.

On Capterra, too, Melio is rated 4.2/5 based on 350+ reviews. Reviewers note that free ACH and deferred payments are among its top features. However, integration remains a challenge. Customers have also mentioned that they’d like the option to add their own logo and branding when sharing invoices with clients.

Customers on Trustpilot give Melio 4.3/5, based on 1300+ reviews. Most reviewers note that Melio’s customer service exceeds expectations, despite being available only via chat and email (no phone calls). However, some users reported that their ACH payments were delayed.

Why You Can Trust Our Melio Software Review

At TechReport, we’re committed to bringing you the most recent and relevant insights from the world of technology, including business accounting software. Since 1999, our crack team of reporters, reviewers, and writers has conducted detailed deep-dives into the products that truly matter to you.

For our Melio accounting review, we signed up for the platform using our work ID and added both client and vendor details. This allowed us to test the software’s accounts payable as well as receivable features. We also installed the Melio mobile app on an Apple device (iPhone 15 plus, for this review) to try out the mobile experience.

To bolster our inferences from hands-on tests, we turned to real-world customer reviews on trusted forums. This gives us a better understanding of how Melio works in daily business conditions and if it lives up to user expectations over the long term.

How to Use Melio for Accounting: Beginner’s Guide

To start using Melio, simply sign up for its services from the Melio website. Since it’s free software, you don’t need to pay anything or enter your credit card details. It’ll deduct transaction fees later after you’ve set up your account and want to make payments. For now, follow these steps to start using Melio:

1. Sign Up for Your Melio Account

Visit app.meliopayments.com/register and enter your details. Remember that you’ll need your work email ID to sign up. If you don’t sign up with Google, Melio will send a 4-digit code to verify your email ID. Complete the verification to proceed.

Then, Melio will ask for your business details. Enter your organization’s name, address, industry, and estimated monthly bill volume (optional). That’s it; you’ll receive a confirmation email on your registered ID.

2. Add Your First Vendor

Once you’ve signed up for your Melio account, the first thing you’ll probably want to do is pay someone. Head to the ‘Pay’ module from the left navigation pane and click on ‘Vendors’ > ‘Add vendor.’

Select the vendor’s preferred mode of payment and save.

3. Connect Your Bank Account

Before you can make or receive payments, you need to connect your bank account with Melio. There are two ways to do this – in real-time, via Plaid, or by sending a small verification amount to your bank, which takes a couple of days. Whichever method you choose, head to ‘Settings‘ and choose ‘Payment methods.’

Click on the ‘Add this method’ button next to ‘Bank account.’ This shows you two options: connect instantly or via two small deposits. The first method is faster, but you’ll be sharing your data with a third-party Plaid.

Plaid partners with 100+ US banks – choose your bank and enter your credentials to complete the process.

You could also choose the second option, which is to connect your bank account via deposit-based verification. Manually enter your banking information, save, and continue. You’ll receive two small deposits in your account within 2-3 days and an email with instructions about how to complete the verification.

Also, contact your bank to authorize Melio as a debtor on your behalf. This allows Melio to pay your vendors and receive payments without getting blacklisted. Share the following originator codes with your bank – 1320565847, 1294287528, 1061273133, and 1289133000.

This successfully connects your bank account account with Melio.

4. Receive Payments

Once you’ve added your bank account, you’re ready to send your first invoice and get paid. Go to the ‘Get Paid‘ module from the left navigation pane and click on ‘Add Invoices.’ Melio will give you three options – connect to QuickBooks or Xero to fetch your invoices, manually add payment details, or share a payment link.

The manual invoicing process gives you the most amount of control and is surprisingly easy to use. Choose one of the following options to add your first invoice:

Next, add your client’s email and, optionally, a custom message. Note that our Melio accounting review found that you can’t send an invoice to multiple IDs at the same time.

The client will receive the following email, which they can pay via card or bank transfer. The funds will be automatically credited to their connected bank account.

Melio Accounting Review – Verdict

Even with businesses’ increasing digitization, the universal payment infrastructure in the US has yet to catch up. PayNow in Singapore, UPI in India, and Swish in Sweden already allow for cashless B2B payments. Apps like Melio are a step in the right direction, bringing the same convenience to businesses in the US.

Our Melio accounting review found that the software really shines in three areas – collaborative approval workflows, flexible payments with excellent biller and bank compatibility, and user experience. What’s more, the core app is completely free, breaking down the barriers to entry for small businesses.

However, Melio isn’t a replacement for your accounting software or bookkeeping tools. You can’t analyze profit & loss or calculate your taxes. It does integrate with more comprehensive accounting solutions like QuickBooks and Xero.

Overall, if you’re looking for a simple, near-universal payment platform that supports both payables and receivables – at very affordable prices – Melio deserves a look.

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