Pinch Payments
Pinch collects invoice payments from your customers by credit card or direct debit - automatically. No chasing. No awkward phone calls. Invoices get paid on the due date and reconcile themselves in Xero
Everything on this page comes from integrating and managing Pinch with Xero across dozens of client businesses - handling merchant applications, surcharging configuration, failed payment monitoring, and the reconciliation that follows. This is what we have learned
Features
No monthly fees. No setup costs. No contracts. You only pay per transaction - and you can pass those fees on to your customers
Pinch sits between your Xero invoices and your customers' bank accounts or credit cards. Raise an invoice, Pinch collects. Simple
Best for
- B2B businesses with repeat invoicing
- subscription and recurring billing
- professional services firms
- trades and construction with progress claims
- accounting and bookkeeping practices
- any business tired of chasing overdue invoices
Pre-Approvals
Your customers authorise automatic payment up to a threshold they set. Invoices are collected on the due date without anyone lifting a finger
Payment plans
Break a large invoice into a series of smaller automatic payments. The plan tracks against the original Xero invoice so you always know the balance
Auto-reconciliation
Every payment, including fees, reconciles back to Xero with no manual matching. Failed payments are re-attempted automatically at no extra charge
Customer portal
Your customers get a branded portal where they can view outstanding invoices, update payment details, download PDFs, and pay in one click
Flexible surcharging
Absorb transaction fees or pass them on - configured per customer or per payment method. Pinch handles the calculation and compliance automatically
No lock-in
No subscriptions, no minimum transaction volumes, no exit fees. Transaction-based pricing only. Start free and keep it that way until you process a payment
Shared data between Xero and Pinch
Data flows in both directions. Xero pushes your contacts and invoices into Pinch so payments can be collected. Pinch pushes payment confirmations and bank feed transactions back into Xero so your books stay accurate without manual intervention
Invoices & Payments
Contacts & Status
How to connect Pinch to Xero
15 minutes to connect. A couple of days for merchant verification
Before you start
- confirm you have Xero Standard or Advisor access
- have your business verification documents ready: owner or director ID, a recent bank statement, and your ASIC company extract
Create a Pinch account
- sign up free at getpinch.com.au
- there are no subscription fees - you will only pay per transaction once you start processing
- during registration you will be prompted to connect your Xero organisation
Complete merchant verification
- Pinch requires standard business verification - ID for the owner or director, a recent bank statement, and your ASIC extract
- applications are typically approved within one to two business days
- this is a regulatory requirement for any payment provider in Australia, not a Pinch-specific hurdle
Configure your payment settings
- choose your default payment methods - credit card, direct debit, or both
- set your surcharging preferences - absorb fees, pass them on, or configure per customer
- configure whether Pinch publishes payments as bank transactions in Xero (recommended: yes)
Send your first Pre-Approval
- select a customer in Pinch and send them a Pre-Approval link
- they enter their card or bank details and set their auto-payment threshold - say, anything under $5,000 gets debited automatically
- from that point on, every invoice you raise for that customer gets paid on the due date. No chasing required
Test the reconciliation
- after a payment processes, check that the invoice is marked as paid in Xero
- confirm the bank feed transaction matches - Pinch auto-reconciles fees separately, so check both the payment line and the fee line appear correctly
- nothing appearing? Check Pinch transaction history for the payment status. Direct debit can take up to three business days to confirm
What to watch out for
Pinch is one of the best-reviewed apps in the Xero ecosystem. Most issues we see are not Pinch's fault - they are structural problems with Australian payment infrastructure
Direct debit is not instant
Australia's BECS system takes up to three business days to confirm a direct debit. Banks cut off at 4pm AEDT, nothing processes on weekends. Credit card payments are near-instant by comparison
Surcharging rules are changing
The RBA has proposed banning card surcharges from 2026 across Visa, Mastercard, and eftpos. If you currently pass fees on to customers, plan ahead for how that affects your pricing model
Customer onboarding takes effort
Pre-Approvals require your customer to click a link and enter payment details. For businesses with hundreds of existing customers, getting everyone set up takes time and follow-up
Fiserv acquisition
Pinch was acquired by Fiserv in April 2025. The team and product continue to operate as before. The long-term question is whether the same personalised Australian support continues at scale
Not for point-of-sale
Pinch is built for invoice-based payments only. No tap-and-go terminals, no POS integration, no in-store hardware. If you need counter payments, you will need a separate solution
What Pinch costs
Pricing model
Per transaction - no monthly fees, no minimums, no subscription
High-volume businesses
Custom rates available for businesses processing over $100,000 per month
The Digit view
The simplest cost model in payments - no tiers to evaluate, no subscription to justify before you process a single dollar
Merchant setup and integration configured
Application, surcharging rules, Pre-Approvals, and Xero reconciliation tested end to end
Payments reconciled as part of weekly bookkeeping
Successful payments auto-match in Xero, failed payments flagged and chased
Accounts receivable working without you touching it
Invoices go out, payments come in, Xero reconciles - you focus on running your business
Frequently asked questions about Pinch Payments
Does Pinch charge monthly fees?
No. Pinch has no setup fees, no minimum fees, and no monthly subscription. You only pay transaction fees when a payment is processed. You can also configure Pinch to pass transaction fees on to the payer as a surcharge, which means you can effectively use Pinch at zero cost to your business
How does Pinch reconcile with Xero?
Pinch automatically reconciles payments against the matching Xero invoices. When a customer pays via Pinch, the payment is matched to the correct invoice in Xero without any manual intervention. This eliminates the bank reconciliation step for Pinch-processed payments
Can customers set up payment plans through Pinch?
Yes. Pinch supports flexible payment plans, allowing customers to pay off invoices in instalments. You can also set up pre-approval thresholds so that invoices under a certain amount are paid automatically via direct debit or card without the customer needing to approve each one individually
What payment methods does Pinch support?
Pinch currently supports direct debit (bank-to-bank) and credit and debit card payments. Additional methods including Google Pay, Link, BPAY, and PayTo are in development. Direct debit is the most popular option as the fees are lower than card payments
Is Pinch only for Australian businesses?
Pinch is built and supported in Australia, and its core customer base is Australian businesses. It integrates with Xero, QuickBooks, and MYOB. Support is provided by an Australian-based team, which is a significant advantage for local businesses compared to overseas support centres
How quickly can I get set up with Pinch?
Pinch account approval typically takes less than one business day. Once approved, connecting to Xero and configuring your payment settings is straightforward. Most businesses are ready to collect payments within a day or two of signing up