How to Set Up Automated "Thank You for Payment" Emails in Xero

TL;DR: Xero doesn't offer built-in "payment received" email automation, but Paidnice fills this gap. Connect your Xero account, set up a payment trigger, customize your message, and let automation handle client appreciation. Start free, no coding required.

The Problem: Xero Users Desperately Want Automatic Payment Confirmation Emails

Every month, Xero users search for a solution to the same problem:

"How do I set up automatic thank you emails when payments are received in Xero?"

"Can Xero send payment confirmation emails when invoices are reconciled?"

If you've asked these questions, you're not alone. The Xero community forums are filled with identical requests dating back years:

"I could not find a way to set up an automated 'Thank you for payment message' email that gets sent out once a payment is allocated." - Samantha H.

The harsh truth? Xero doesn't offer this functionality natively. But your clients still expect that professional touch.

Why Automatic "Payment Received" Emails Matter More Than You Think

Confirmation emails aren't just administrative fluff. They're relationship currency.

When a client pays, an immediate "thank you" does three critical things:

• Closes loops - Clients know their payment was processed successfully
• Reduces inquiries - Fewer "Did you get my payment?" emails clogging your inbox
• Builds trust - Demonstrates your attention to detail and professionalism

Consider this: 68% of customers leave because they perceive indifference. An automatic thank you is the simplest antidote.

The Paidnice Solution: Set Up Xero Payment Confirmation Emails in 4 Minutes

Here's how to automate payment confirmation emails with Paidnice:

1. Create Your Email Policy

Log into Paidnice and navigate to Default Group → Email Policies → + New Email Policy. Select "Invoice Marked Paid" as your trigger event.

2. Customize Your "Thank You for Payment" Message

Paidnice provides a default template, but personalization wins hearts. Add:

• Your company logo.
• Dynamic fields that auto-populate: {Customer_Name}, {Invoice_Number}, {Amount_Paid}.
• A genuine thank you that reflects your brand voice.
• Optional: link to your customer portal or next steps.

3. Set Your Timing

Choose when the email sends—immediately on payment or at a specific time of day. For reconciled payments, "On The Date Marked Paid" ensures timely delivery.

4. Test Before Going Live

Use Paidnice's preview function to see exactly what your clients will receive. Send a test to yourself before activating.

Beyond Basic 'Thank You's' Some Features You'll Love

Once your payment confirmation emails are running, explore these advanced options:

• Attachment automation: Include updated statements or receipts
• Conditional content: Different messages based on payment amount or customer type
• Multi-channel delivery: Add SMS confirmation for high-value payments
• Follow-up sequences: "We appreciate your business" messages a week later

Real Results: What Paidnice Users Experience

"Before Paidnice, we spent 5+ hours monthly on payment acknowledgments. Now it's automatic, and clients actually comment on how professional our process feels." - Sarah T., Accounting Manager

The average Paidnice user saves 3-4 hours per week on accounts receivable tasks. But the real ROI comes from improved client relationships.

Get Started with Paidnice: Your First 20 "Thank You" Emails Are Free

Setting this up takes less time than reading this article. Here's your action plan:

1. Create your free Paidnice account
2. Connect your Xero instance (2-click OAuth process)
3. Set up your first Email Policy using the steps above
4. Start getting paid on time, every time.

Start Sending Automatic Payment Thank You Emails Today →

FAQ: Xero Payment Confirmation Emails

Can I send payment confirmation emails natively in Xero?

No, Xero doesn't offer automatic payment confirmation emails when invoices are marked paid or reconciled. This feature has been requested by users since 2015, with hundreds of forum posts asking for this functionality. Paidnice's Xero integration was specifically designed to fill this gap.

How quickly do confirmation emails send after payment?

With the "immediate" setting, emails send within 60 seconds of marking an invoice as paid in Xero. You can also schedule emails to send during business hours or batch them for specific times. The system checks for newly paid invoices every minute.

Can I customize emails for different client types?

Yes, using Paidnice's contact groups, you can create different thank you templates for:

• VIP clients (more personalized messaging)
• International customers (different languages)
• B2B vs B2C clients
• Payment method types (ACH, credit card, check)

Will clients receive duplicate emails if I manually mark as paid?

No, Paidnice's smart detection prevents duplicate emails. Each invoice only triggers one payment confirmation email, regardless of how many times it's marked paid or reconciled in Xero.

Can I include payment receipts or statements?

Yes, you can automatically attach:

• PDF receipts for the specific payment.
• Updated account statements.
• Links to your customer portal for self-service downloads.

What variables can I use in email templates?

Common variables include:

• {{client_name}} - Customer's name
• {{invoice_number}} - Specific invoice reference
• {{amount_paid}} - Payment amount
• {{payment_date}} - Date payment was received
• {{outstanding_balance}} - Any remaining balance
• {{next_invoice_due}} - Upcoming payment dates

Is email tracking included?

Yes, all payment confirmation emails include:

• Open rate tracking.
• Click tracking for any links.
• Delivery confirmation.
• Bounce notificationsAccess analytics through your Paidnice dashboard under reporting.

‍Can I do this natively in Xero without Paidnice?

‍No. Xero doesn't currently offer automatic payment confirmation emails when invoices are marked as paid or reconciled. This has been a feature request since at least 2015.

Can I see if clients opened the thank you email?

‍Absolutely. Paidnice includes email tracking so you can see open and click rates for all your payment confirmations.

Is this compliant with email regulations?

‍Yes. Paidnice ensures all transactional emails are compliant with GDPR, CAN-SPAM, and other relevant regulations.

Related Articles:

• 5 Xero Automation Hacks That Save 10+ Hours Monthly
• How to Set Up Invoice Reminders in Xero (With Better Results)
• The Complete Guide to Xero Accounts Receivable Automation