Xero payment conditions

Payment Settings

Strict Processing:

If any payments sent to Modulr in a batch for processing fail validation, then the whole batch will fail validation. You'll need to go back to Xero to re-send.

Consolidated Payments – default setting is ON

When the Consolidated Payments setting is ON, payments in a batch that are to be sent to the same destination account will be grouped and sent as a single transaction.

ON = If payments have the same destination, they'll send as a single consolidated payment
OFF = Payments to the same destination will send as individual payments

Changing Consolidated Payment Setting

→ To change the Consolidated Payments setting, contact Support

Setting up payments

There's a few general conditions that need to be set in order to make payments with Xero:

Topic	Conditions
Bills currency	Must be GBP
Supplier’s Financial details	Details must be completed Bank Account Name (use as Payee Name) can only have alphanumeric characters (a-z, A-Z, 0-9) plus full stop, hyphen, solidus, or ampersand and be fewer than 100 characters. Sort Code and Account Number must be 14 digits; Sort Code is also accepted in the format 00-00-00.
Account syncing	Modulr E-Money account must be synced with Xero. After sync, it’s created as Bank Account

Single Payments

Payment reference	Details
Payment reference on Modulr payment request An alternative option is selected if the precedent one is empty. Payment reference must consist of at least 6 alphanumeric characters that are not all the same. Optional, uncounted characters include space, hyphen(-), full stop (.), ampersand(&), and forward slash (/). Total of all characters must be less than 18.	Single payment (Unique bill) 1st option: Xero Payment Reference 2nd option: Xero Bill Reference 3rd option: Xero Organisation name

Batch / Consolidated Payments

Payment reference	Details
Payment reference on Modulr payment request An alternative option is selected if the precedent one is empty. Payment reference must consist of at least 6 alphanumeric characters that are not all the same. Optional, uncounted characters include space, hyphen(-), full stop (.), ampersand(&), and forward slash (/). Total of all characters must be less than 18.	Batch Payment (Group of bills) 1st option: Xero supplier's fix reference (Set on supplier's financial details) 2nd option: Xero Bill reference 3rd option: Xero Organisation name

Payment Processing Rules

When Payment is removed in Modulr (Cancelled or Rejected), then:

Payment is deleted from the Bill
Or the batch payment is removed from the Bills

When requirements for a payment are not met it will be rejected. The Bill will move to Awaiting Payment status. Review bill notes to get details of the rejection. If is part of a batch all the bills will be rejected.
Any bill that has previously been recorded as paid, and it must be paid again in Xero due to needing to amend the bill, it will be ignored by Modulr and won't create a new Payment Request (either single or batch) in the Modulr Portal.

Xero has limits to the amount calls Modulr can perform in a minute and daily basis, which could affect:

Time to process large batch payments (+ 50 payments per batch).
The number of large batches could be processed daily.

Bank feeds

All Modulr accounts that have been synced to Xero, will automatically feed into Xero with bank statements for all Pay In or Pay Out transactions that occur, including payments made for your bills in Xero.

Follow the links below to learn about connecting Xero to Modulr and setting up accounts.