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You’re staring at a stack of invoices, a dwindling checkbook, and a vendor who refuses to accept anything but a paper check. It’s 2026. Why are we still mailing envelopes like it’s 1995? Honestly, it’s exhausting.
Enter Melio. Most people think it’s just another Venmo for business or a basic bank portal. It isn't. If you’ve been wondering how does melio work, the short version is that it acts as a smart middleman that decouples how you pay from how your vendor gets paid. You could pay with a credit card to rack up points, while your landlord receives a boring old paper check in the mail. They don’t even need an account.
The "Middleman" Magic
Basically, Melio is a digital bridge. When you schedule a payment, you choose your "funding source"—maybe your business checking account or a rewards-heavy Visa. Then, you choose the "delivery method."
This is where it gets interesting.
Your vendor can get an ACH transfer, a physical check, or even an instant payment. Because Melio handles the "translation" between these two sides, you gain a massive amount of control over your cash flow. You’re essentially floating your expenses on a credit card for an extra 30 days while keeping your suppliers happy with on-time payments.
How Does Melio Work Step-by-Step?
Setting this up doesn't require a degree in accounting. You can get a bill into the system in about ten seconds by just snapping a photo of it with your phone.
1. Adding the Bill
You’ve got three ways to do this. You can upload a PDF, take a photo via the app, or—if you’re fancy—sync your QuickBooks or Xero account. If you sync, your unpaid bills just pop up automatically. It’s kinda satisfying to see them all lined up without typing a single digit.
2. Choosing Your Payment Method
Here is where the strategy happens.
- ACH Transfer: This is usually the "free" or low-cost route. In the Go plan, you might get a handful of these for free before a small fee kicks in. It’s the standard way to move money.
- Credit Card: This is the big one. Melio charges a 2.9% fee for this. Now, you might think, "Why would I pay 2.9% to pay a bill?"
- The Float: If you’re in a cash crunch but have a $50k limit on your business card, that 2.9% is a lot cheaper than a short-term loan. Plus, if you’re chasing a 100,000-point sign-up bonus, one big rent payment through Melio can get you there instantly.
3. Delivery (The "Hand-Off")
You tell Melio how the vendor wants the money. If they want a check, Melio prints it and mails it via USPS. You don’t touch a stamp. You don’t buy envelopes. If they want ACH, Melio sends it.
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The coolest part? Your vendor doesn't have to sign up for Melio. They just get their money. To them, it looks like a standard business payment.
The 2026 Reality: Fees and Plans
Let's talk money because nothing is truly "free" forever. Melio shifted from a purely "pay-as-you-go" model to having actual subscription tiers, which caught some long-time users off guard.
The "Go" Plan
This is the $0 per month option. It’s perfect if you’re a freelancer or a tiny shop. You get about 5 free ACH transfers a month. After that, expect to pay around $0.50 per transaction. Paper checks usually cost $1.50 after the first couple of free ones.
The Premium Tiers (Core, Boost, and Unlimited)
If you’re moving serious volume, you’ll end up on a paid plan ranging from $25 to $80 a month. Why pay? Because you get more free ACHs, better approval workflows (so your assistant can prep bills but only you can hit "send"), and faster sync with QuickBooks Desktop.
The Fast Stuff
If you forgot a bill and it’s due today, Melio has an "Instant" option. It costs 1% (capped at $75 usually), and the money hits the vendor’s account in minutes. It’s a lifesaver, honestly.
Managing Accounts Receivable (Getting Paid)
Melio isn't just for paying out; it's also for bringing money in. You can send a request to a client with a "Pay" link.
They click it. They pay via ACH or card.
The "pro tip" here is that you can actually choose who pays the credit card fee. If you’re a contractor, you can set it up so that if your client wants to pay by card, they eat the 2.9% fee. It’s a polite way of saying, "I'll take your card, but it's gonna cost you."
Is Melio Safe? (The Question Everyone Asks)
Look, putting your bank credentials into any app feels sketchy. Melio uses Plaid to connect to your bank, which is the industry standard. They also use SOC2 Type II certified data centers.
Is it 100% bulletproof? No digital system is. But they’ve processed over $100 billion. They aren't some fly-by-night operation. They use multi-factor authentication and state-of-the-art encryption. If you're okay with online banking, you're likely okay with this.
A Few "Gotchas" to Watch Out For
It’s not all sunshine.
- Amex Limitations: American Express is picky. You can’t use an Amex to pay for everything (like some types of debt or very specific high-risk categories). Visa and Mastercard are usually fine.
- Support Delays: When things go wrong—like a check getting lost in the mail—their chat support can sometimes be a bit slow during peak hours.
- International Fees: They do 80+ countries now, but it’s a flat $20 fee. If you’re sending $100 to a designer in Europe, that fee stings. For a $5,000 payment? It's a bargain.
Why Use It Instead of Your Bank’s Bill Pay?
Your bank's bill pay is probably clunky. It doesn't sync with your accounting software in real-time. It definitely won't let you use a credit card to pay a vendor who only takes checks.
Melio's value isn't just moving money; it’s the data sync. When you pay a bill in Melio, it marks it as "Paid" in QuickBooks automatically. That saves your bookkeeper hours of manual reconciliation.
Actionable Steps for New Users
If you're ready to stop licking envelopes, here is exactly how to start without breaking your current workflow:
- Start with one vendor. Don't move your whole office over on day one. Pick that one annoying vendor who only takes checks and try a $50 payment.
- Connect your accounting software first. It makes the "Add Bill" step effortless because the data is already there.
- Check your credit card rewards. Before you use the "Pay by Card" feature, make sure your card earns more than 2.9% in value (or that the cash flow "float" is worth the cost to you).
- Set up an approval workflow. If you have a partner, set a limit (e.g., any bill over $500 needs a second set of eyes). This prevents "accidental" large transfers.
- Download the mobile app. It’s significantly better for scanning physical mail than using a flatbed scanner like a caveman.
By decoupling your payment method from the vendor's receiving method, you stop being a slave to their accounting preferences and start managing your cash like a CFO.