Melio Review 2025: Pay Bills by Card, Earn Rewards, Grow Your Business

Melio lets you pay any business vendor by credit card, even if they only accept checks or ACH. It's a game-changer for earning credit card rewards, meeting large signup bonuses, and improving cash flow.

In this review, we’ll cover how Melio works, what you can and can't pay with it, and whether the 2.9% fee is worth it if you're trying to earn points or meet a credit card minimum spend.

TL;DR: Melio Pros & Cons

Pros:

• Free Go plan with basic bill pay and 5 free ACH per month
• Pay vendors by credit card (even if they only accept checks/ACH)
• Helps meet the minimum spend on business credit cards
• Free ACH allowances on every plan (5–unlimited)
• Works with QuickBooks and Xero
• The vendor doesn't need to sign up to get paid
   

Cons:

• Subscription fees for Core, Boost, and Unlimited plans ($25–$80/mo, discounted 90% for first 3 months)
• 2.9% fee for credit card payments
• Only supports business-to-business (B2B) payments
• Amex has restrictions on allowed vendor categories

Melio Subscription Plans & Pricing

What Is Melio?

Melio is a business bill pay service designed for U.S.-based businesses of all sizes. It lets you pay other businesses using either a bank account (ACH) or a credit card. Even if your vendor doesn't accept cards, Melio will convert the payment into a check or ACH deposit.

Unlike Zelle or Venmo, Melio is strictly for B2B payments. It’s not a peer-to-peer or personal payment app. Both you and the recipient must be businesses, such as sole proprietors, LLCs, or corporations.

How Melio Works

1. Sign up for Melio
2. Enter the bill or vendor details
3. Choose your payment method: bank account (free) or credit card (2.9% fee)
4. Melio delivers the payment to your vendor by ACH or paper check
    

The vendor receives a standard business payment, no need for them to sign up. You get the option to notify them by email with memo details or invoice numbers.
 

Melio also integrates with QuickBooks and Xero, letting you sync bills and automatically mark them as paid.

When the 2.9% Credit Card Fee Makes Sense

The 2.9% fee is the main tradeoff when using a credit card. But in many cases, it’s worth it:

• Welcome bonuses: Earning a $750 or $1,200 bonus from a business card can far outweigh a 2.9% fee
• Cash flow float: Paying with a credit card gives you an extra 30-60 days before the payment is due
• Points & miles: Cards that earn 2x or 3x on business spend can offset part of the fee
   

Quick Example:

If you pay a $5,000 vendor invoice using a credit card:

• Fee = $145 (2.9%)
• Signup bonus = $750 (e.g., Chase Ink Preferred)
• Net = $605 in value (plus float)

In that case, the fee is well worth it.

Looking for a new credit card to pay vendors? Explore cards here. 

What You Can Pay with Melio

Melio supports most business-related payments, including:

• Rent to a business landlord
• Business taxes (federal/state)
• Contractor and freelancer invoices (1099 payments)
• Professional services (legal, accounting, consulting)
• Inventory and supplies
• Software subscriptions
• Insurance and utilities
• Donations to nonprofit organizations
   

If it’s a legitimate business expense and the recipient is a business, Melio likely supports it.

What You Can’t Pay

• Personal payments (e.g., rent to your roommate, utilities at home)
• Payroll for W-2 employees
• Credit card bills or other debt payments
• Payments to yourself or a related entity
• Businesses in restricted industries (e.g., gambling, adult content, weapons)
• Amex: certain industries like insurance or education are restricted due to Amex policy
   

Melio also doesn’t support prepaid cards as a funding source.

Is Melio Safe to Use?

Yes. Melio is:

• PCI-DSS compliant (your card info is encrypted and tokenized)
• SOC 1, 2, and 3 certified data centers
• Backed by partner banks like JPMorgan Chase and Evolve Bank & Trust
• Actively monitored for fraud and compliance
   

You don’t need to worry about card security, and your vendors receive payments just like they would from a bank.

Does Melio Report to the IRS?

No. Melio does not issue 1099s or report your payments to the IRS. However, you should still keep good records of your payments and invoices for tax purposes.

Signup Process

To use Melio, you’ll need:

• A U.S. business (LLC, S-corp, C-corp, or sole prop)
• EIN or SSN/ITIN for identity verification
• A U.S. business bank account or credit card
   

Signup is free, and you can make your first payment in under 10 minutes.

FAQs About Melio

Can I use Melio to pay rent with a credit card?

Yes, if the landlord is a business (e.g., property management company), Melio allows you to pay by credit card, and they’ll receive a check or ACH. It’s a great way to float cash or hit a minimum spend bonus.
 

What’s the credit card fee, and is it worth it?

The fee is 2.9% for all credit/debit card payments. It can be well worth it if you're unlocking a large welcome bonus, earning high rewards points, or need extra float.
 

Can I pay personal expenses through Melio?

No. Melio only supports business-to-business (B2B) transactions. You and your vendor must both be operating as businesses.
 

Does Melio work with American Express?

Yes, but Amex has restrictions. Only certain vendor categories are allowed (e.g., government, education, professional services). If Amex blocks a transaction, you’ll need to switch to Visa or Mastercard.
 

Do vendors need a Melio account to receive payments?

Nope. Melio converts your payment into an ACH deposit or paper check. The recipient doesn’t need to sign up or do anything different.

Final Thoughts

Melio is one of the most powerful tools to help you:

• Earn credit card points on payments that normally don’t accept cards
• Hit high minimum spend bonuses
• Float your cash flow while keeping vendors happy
   

While the 2.9% fee is a factor, the value from welcome offers or high-earning points can make it well worth it.
 

If you’re a small business owner looking to optimize every dollar—and every point—Melio is a no-brainer.