Why use Stripe payments in Collect with Xero?

When you connect Stripe to Collect and use it with Xero, you get:

Faster payments – Collect adds a “Pay Now” button to your reminder emails. Your customers can pay immediately via card or other methods, instead of logging into a bank or calling you.
Less manual chasing – Automated reminders + instant payment links reduce time spent following up overdue invoices.
Cleaner reconciliation – Using Xero’s Stripe direct feed means Stripe payouts flow automatically into Xero as bank transactions, so you can match them to invoices and fees in a few clicks.
Full visibility – You can see the end‑to‑end flow: invoice created in Xero → reminder & payment in Collect → payout from Stripe → reconciliation in Xero.

Before you start

Make sure you have:

An active Xero organisation
A Collect account connected to that Xero organisation
A Stripe account connected to that Collect account
- You can create a Stripe account from within Collect if needed

Required permissions

Xero: Admin or Advisor access to manage bank accounts and reconciliation

Stripe: Admin access to view payouts and settings in the Stripe Dashboard

If you need help connecting Collect to Stripe, see Connecting Stripe to Collect.

Once Stripe is connected and receiving payments, the next step is setting up reconciliation in Xero.

How Stripe payouts work

When a customer pays via Stripe:

Collect sends the payment details to Stripe
Stripe charges the customer and deducts processing fees
Stripe groups multiple charges (and any refunds or adjustments) into payouts
Stripe transfers a net payout to your nominated bank account

This net payout is what you reconcile in Xero.

Useful Stripe articles:

Step 1: Check Stripe payout settings

In Stripe:

Log into the Stripe Dashboard
Go to Balances → Payouts (or Home → Payouts, depending on your layout)
Confirm:
- Payout schedule (for example, daily or weekly)
- Destination bank account
- Payout currency

This helps you understand:

How often Stripe transactions will appear in Xero
Whether payout dates and amounts in Xero match Stripe

Step 2: Set up a Stripe direct feed in Xero

You’ll create a Stripe bank account in Xero to receive transactions via the Stripe direct feed.

Add a Stripe bank account

In Xero, go to Accounting → Bank accounts
Click Add Bank Account
Search for Stripe
Select the Stripe feed for your region and follow the on-screen steps

Connect Xero to Stripe

Xero will either:

Redirect you to Stripe to authorise the connection, or
Ask for Stripe connection details

Approve the connection so Stripe can send transactions to Xero.

Once connected, Xero will import:

Individual Stripe charges and fees
Stripe payouts

You can set up a Stripe bank feed even if you don’t use Stripe as a payment service on Xero invoices. This is useful when payments are made via Collect.

Useful Xero article:

Stripe direct feeds

Once the above is set up:

Customers pay their Xero invoices via Collect using Stripe.
Stripe groups those payments into payouts transferred to your bank account.
Xero imports Stripe transactions into your Stripe bank account and you see net payouts in your main bank account.

You now need to reconcile those transactions and payouts to the underlying invoices and fees.

Step 3: Reconcile Stripe transactions in Xero

In Xero:

Go to Accounting → Bank accounts
Click Reconcile next to your Stripe bank account

You’ll see three transaction types:

Stripe charge (received): individual invoice payments
Stripe fees (spent): Stripe processing fees
Stripe payout (spent): transfers to your main bank account

Reconcile Stripe charges

For each Stripe charge:

Select the invoices paid
Collect sends invoice numbers to Stripe to support matching

Reconcile Stripe fees

For each Stripe fees transaction:

Use a bank rule or manually code the fee to your Stripe fees expense account (or a general bank fees account)

Reconcile Stripe payouts

For each Stripe payout transaction:

Code it as a Transfer to your main bank account
Go to your main bank account in Xero
Match the incoming payout to the transfer
Click Reconcile

Tips for smoother reconciliation

Create a dedicated “Stripe Fees” expense account
- Code all Stripe fee lines there so you can easily see your cost of payments.
Create reconciliation rules in Xero
- Automatically assign Stripe fees to the right account and create transfers for Stripe payouts
Reconcile regularly
- Do this daily or weekly, in line with your Stripe payout schedule, to avoid large unmatched backlogs.
Watch out for refunds and disputes
- Refunds and chargebacks will appear as separate lines in Stripe and Xero. Make sure they’re correctly matched against the original invoices or credit notes.
Multi‑currency
- If you receive payouts in multiple currencies, check Xero’s guidance on multi‑currency Stripe feeds and exchange rate handling.

FAQ

Do I need to set up Stripe as a payment service in Xero?

No.
You can use a Stripe bank feed without enabling Stripe as a payment service on Xero invoices. This is common when invoices are sent and paid via Collect.

See: Stripe direct feeds

Which bank account should Stripe payouts transfer to?

Use the same bank account in:

The Stripe Dashboard payout settings, and
Xero when reconciling Stripe payout transfers

How often will Stripe payouts appear in Xero?

This depends on your Stripe payout schedule:

Daily by default in many regions
Weekly or manual, depending on your Stripe settings and country

Once the Stripe direct feed is connected, Xero will import new Stripe transactions/payouts according to that schedule (typically with a short delay).

How are Stripe fees handled in Xero?

Stripe fees usually appear as separate lines in the Stripe feed.

In Xero, you can:

Create a Stripe fees expense account
Use bank rules or manual coding so all fee lines are coded to that account
Reconcile them as part of normal bank reconciliation

What if a payout amount doesn’t match?

Check:

Stripe dashboard → Payouts
- Confirm which individual charges, refunds and fees are included in that payout.
Currency and fees
- Verify the payout currency and any additional fees (e.g. instant payouts).
Xero reconciliation
- Ensure you’ve matched all related invoice payments and fee lines to that payout in Xero.

If needed, compare the payout breakdown in Stripe with Xero line by line.

Can I disconnect the Stripe feed later?

Yes.