What are embedded payments?
Embedded payments are payment features built into software a business already uses, so invoices, proposals or bills can be paid without leaving it. For accounting firms that means clients paying by card or bank transfer inside the proposal or billing tool, with each payment matched to its invoice and posted to the ledger automatically.
Also calledintegrated payments
Compare the softwareBest accounts receivable automation software →All 12 accounts payable, receivable and payments vendors →
- Common methods
- Card, ACH, direct debit
- Main benefit
- Payment matched to its invoice
- Category
- AP, AR and payments
How embedded payments work
The software company partners with a payment processor and offers card, ACH, direct debit or bank transfer payments as a feature of its product, usually earning part of the processing fee. In accounting the effect is on collection and reconciliation. Ignition and Anchor take a client's payment details when the engagement letter or proposal is signed and charge automatically as work is billed; Aiwyn automates billing and collections for firms; BILL, Centime and Mimo build payments into payables and receivables, so each payment starts from a known invoice and is reconciled in the ledger.
Common questions
What is the difference between embedded payments and a payment gateway?+
A gateway is a separate service a business connects to its website or invoices. Embedded payments come inside the software the business already uses, under its interface, with the payment data flowing straight into its records.
How do accounting firms use embedded payments?+
To collect fees: the client authorises card or bank payments when signing the engagement letter, and the billing or practice tool charges each invoice automatically, which cuts chasing and debtor days.
Do embedded payments reconcile automatically?+
Mostly. Because each payment starts from a known invoice, the software marks the invoice paid and posts the receipt and the processing fee to the ledger, leaving failed or partial payments to review.
Software used for embedded payments
IgnitionProposals, engagement letters and automated billing.Profile →
AnchorEngagement terms turned into automated billing and collection.Profile →
AiwynBilling and collections automation purpose-built for accounting firms.Profile →
BILLAP and AR automation with approvals, payments and accounting sync.Profile →
CentimeAP, AR, forecasting and banking in one cash flow view.Profile →
MimoSupplier payments and collections auto-reconciled into Xero.Profile →Part of Accountio’s accounting technology coverage · Glossary
