Paying vendors without breaking your books
Most small-business fraud happens in payables. A good bill-pay setup costs less than one fake invoice.
Short answer
Pay by bank transfer (ACH) where you can: it's the cheapest method and leaves a clean record. Use a bill-pay tool that syncs to your ledger, and make sure the person who adds a new vendor isn't the same person who approves payments to them.
What each payment method costs
| Method | Melio | Xero bill pay (US) |
|---|---|---|
| Standard ACH | 5 free a month on the free Go plan, then $0.50 each | Free, arrives in about 3 business days |
| Paper check | $1.50 each | $1.50 each |
| Fast or same-day transfer | About 1%, capped at $75 | 1%, capped at $75 |
| Paying by credit card | 2.9% | 2.9% |
Xero bought Melio in 2025, so their fees line up. Melio's paid plans raise the free ACH allowance; check the live pricing page for the plan that fits your volume.
When paying by card makes sense
Paying a supplier by card through Melio can stretch your cash by a few weeks and earn card rewards. But 2.9% on a $10,000 bill is $290. Do it when the cash timing is worth more than the fee, not as a habit.
Controls that stop most payables fraud
- Collect a W-9 before the first payment to any new US vendor.
- Verify any change to a vendor's bank details by phone, using a number you already had, never the one in the email asking for the change.
- Split the roles: one person adds vendors and enters bills; another approves payments.
- Match each bill to a purchase order or a delivery before paying it.
- Review the vendor list every quarter and deactivate the ones you no longer use.
These are the first things an auditor tests in payables, and they work just as well in a five-person company.
Rather have it done for you?
We keep small-business books reconciled every month, in QuickBooks Online or Xero, for a fixed fee. Start with a free 20-minute review of where your books stand.
Book a free review