Running payroll can be one of your business's biggest recurring expenses. Using your credit card to help fund it can be a great way to maximize your card rewards. Melio can't pay your employees directly, but we can help get funds to your payroll provider using your card. There are two ways to do this, depending on how your provider accepts payments. This guide explains both options, so you can find the right one for your business.
In this guide, you will learn the following:
- Paying your payroll provider directly
- Using Melio's Payroll by Card feature
- Checking your eligibility for Payroll by Card
Paying your payroll provider directly
If your payroll provider accepts wire or ACH bank transfers, you can pay them using your credit card, the same way you'd pay any other vendor in Melio. This is known as a push payment, since you or your business initiate and send the funds.
When should I use this option?
If your payroll provider accepts wire or ACH bank transfers that you initiate, and you know their delivery details.
To pay your provider this way:
- Check out this guide for a general overview of creating and scheduling a payment.
- See this guide if your payroll provider specifically accepts wire transfers.
- See this guide if your payroll provider specifically accepts ACH bank transfers.
When setting up the payment, be sure to select a credit card as your funding method.
Not sure if your provider accepts wire or ACH bank transfers for funding payroll?
Check with your provider directly, or see this guide to review your options.
Using Melio's Payroll by Card feature
Some payroll providers only accept pull payments, or ACH debits. This means they withdraw (or debit) the funds from your bank account automatically, rather than waiting for a payment you send. If that's how your provider works, you may still be able to fund your payroll with a credit card payment through Melio's Payroll by Card feature, earning your card's rewards on that spend.
When you run payroll using Payroll by Card:
- You upload a required payroll document to confirm the funds are for legitimate payroll use.
- Melio charges your selected credit card for the payroll amount.
- Those funds are deposited into your existing Payroll bank account. This is the same account your payroll provider already debits from. You'll be prompted to add these details when you complete your first payroll payment.
- From there, nothing changes on your provider's end. They withdraw the funds automatically, just as they always have, and your employees get paid as usual.
When should I use this option?
If your payroll provider doesn't accept push payments initiated by you, and only debits your account automatically.
You want to fund your payroll with a Visa or Mastercard. (Amex isn’t supported at this time.)
What are the fees attached to using Payroll by Card?
Payroll by Card uses Melio's standard credit card processing fees; it's the same rate you'd pay for any other card payment in Melio. There's no additional or premium fee for using Payroll by Card itself. Learn more about credit card fees here.
What is needed on the required payroll documentation?
- Payroll provider's name/logo
- Business name matching Melio's records
- Full payroll run total
- Pay date
- Debit date
- Payroll period
A payroll summary or payroll register from your provider are both acceptable documents. Please remove or redact any employee names or per-employee amounts before uploading.
When will the payment from my card arrive to my Payroll bank account?
Once reviewed, payments will be sent the same day or the next business day, depending on the wire or ACH bank transfer cutoff time. More details on delivery ETAs can be found in this guide.
Checking your eligibility for Payroll by Card
If you don't currently have access to Payroll by Card and would like to learn more, please schedule a call with our sales team.
That's it! You now know the options to fund payroll through Melio using your card, whether that means paying your provider directly or using Payroll by Card.