How to collect payments with GoCardless for Xero
Please note: To avoid disrupting your payment processing, all payment actions (such as canceling, retrying, or modifying payments) must be managed exclusively within the GoCardless for Xero dashboard.
There are a number of different ways GoCardless for Xero can be used to collect payments via Xero.
- Choosing a payment method for your invoices
- Collecting invoices automatically
- Collecting payments manually
- Splitting payments in instalments
GoCardless for Xero supports multiple payment methods:
GoCardless for Xero supports the following payment methods:
- Direct Debit: For recurring payments. Customers authorise a Direct Debit mandate once, and future payments are collected automatically.
- Pay by Bank: For one-off payments. Customers pay directly from their bank account with instant confirmation. Perfect for one-time fees or payment retries.
- Pay by Bank + future Direct Debit: Collect the first payment instantly, then set up a mandate to take future payments automatically with Direct Debit. Perfect for initial fees and getting paid before recurring collections begin.
Each Xero branding theme is assigned one payment method, which can be configured in the Settings page. Any invoice created using that branding theme will offer customers the selected payment method. We recommend setting up separate branding themes for different payment methods so you can easily tailor the payment experience to different invoice types.
For example:
- A "Subscription" theme configured with Direct Debit
- A “One-off” theme configured with Pay by Bank
- A “First payment + Recurring” theme configured with Pay by Bank + future Direct Debit
How to set up your payment methods:
- In GoCardless for Xero, go to Settings - Payment methods.
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Select the payment method you want to use for each of your existing branding themes using the dropdown in the “Payment method” column.
- If you want to create a new branding theme, you can do so in Xero via the Invoice Settings page. Do this first before configuring the payment method in GoCardless for Xero.
- Once you’ve set up your payment methods, enable the Pay now button on your branding themes. When enabled, the Pay by GoCardless option will automatically appear on all invoices to take payment via your selected method. Your payment service can be managed on each individual Xero branding theme via Connected payment services. Learn more about the Pay now button in our guide Adding a Pay now button to invoices
Collecting invoices automatically
Payments can be automatically collected from customers who have signed a Direct Debit mandate. Payments are collected on the invoice due date or as soon after the due date as possible. You can read more here: GoCardless for Xero - Automating Payment Collections.
Note: Pay by Bank invoices aren't collected automatically in the same way as Direct Debit. Customers authorise payment from their banking app since it’s a one-off bank payment. Learn more about Pay by Bank payments.
Collecting payments manually
After a customer has signed a mandate, payments can be manually collected from the GoCardless for Xero Invoices page. You can read more here: GoCardless for Xero - Manual Collection.
Splitting payments in instalments
If a customer would like to pay a large invoice via instalments, this can be done from the GoCardless for Xero Invoices page. Click on the ‘Collect’ button in the Actions column and select ‘Split into instalments’. Learn more about instalments in GoCardless for Xero - Instalments.