Melio vs. What's the Best Way to Pay Contractors?

November 29, 2022
Business Basics

Small businesses are hiring an increasing number of contractors thanks to the cost-saving benefits they offer. But these external payments can be challenging to manage and track when you're stuck cutting paper checks.

That's why many small businesses nowadays use automated bill-pay services like Melio and

Bill pay services help you manage your Accounts Payable (A/P); payments your business owes to vendors. Instead of cutting physical checks yourself, you can use these services to send checks, initiate wire transfers, and even receive payment in some cases.

They also make tracking 1099s and vendor payments a breeze, as opposed to using something like Venmo.

We've got you covered if you’re trying to choose the best bill pay product. Keep reading to learn everything you need to know to make the right decision between Melio vs.

Factors to Consider When Choosing Between Melio vs.

Let’s begin by looking at the key factors to consider as you go through the decision-making process. Here are five that are worth looking at.

Ease of Use (Dashboard Quality)

The main thing you need is a payment tool that’s easy to use.

If it’s a challenge to set up your new software or you struggle to find the features you need, then you’re just going to substitute one kind of monotonous work for another.

That means it’s crucial to understand how each product’s dashboard differs from one another.

You can typically sign up for a free demo or watch a Youtube video that will show you each platform’s dashboard in action so that you can make the right call for your preferences.


Integrations are another great feature as you try to find the best payment software for your company.

More specifically, you’ll want to find a payment platform that integrates with your accounting software, such as QuickBooks Online or Xero.

If your payment tool doesn’t integrate with the accounting software you use, you’ll likely face extra work when you balance your accounts on the back end.

Customer Reviews

Customer reviews from sites like G2 are also worth looking at. These help you understand how real people feel about their overall decision to use products like Melio and

They might clue you into an essential differentiating factor you wouldn’t have noticed otherwise.

Customer Service

Even the best software will pose problems to you sometimes.

You need high-quality customer service available at times that fit into your working hours for when those situations arise.

You may also want to choose a payment tool that offers phone-based customer support instead of only live chat service if that’s your preference.


Finally, pricing is always a factor. Most products – including Melio and – have different pricing tiers, which come with different perks.

You’ll want to understand which plan gives you the best bang for your buck before making a decision.

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Melio (Pros and Cons)

Melio is an invoicing and payment tool that allows you to pay contractors in whatever way you prefer.

You can do everything from ACH bank transfers and credit card payments to paper checks and even international USD transfers with this tool.

Melio Pros

  • Free to start using, and you only incur charges when using certain payment methods like credit cards.
  • Recipients don’t have to sign up or create an account to receive their funds.
  • You can add unlimited users for free.
  • Integrations for QuickBooks Online and other software.
  • Pay several bills at once and with different payment methods.
  • Set up recurring payments.
  • Team management tools.
  • Support via email and live chat.

Melio Cons

The main downside with Melio is that it doesn’t offer as many premium services as other providers, like If you’re looking for deep automation tools and AI-generated insights, then you may want to pick another provider.

Melio focuses its energy on being the simplest solution for paying contractors.

It doesn’t spend as much time developing premium services. (Pros and Cons)

Like Melio, is a platform that makes it easier to pay contractors in whatever ways they prefer. also offers solutions for simplifying the process of getting paid by clients. It also adds some helpful automation and integrations to its plans to provide businesses with enhanced support. Pros

  • Centralized inbox for all your bills.
  • Customized invoice templates.
  • Single or recurring invoices.
  • Payment status tracking.
  • Automated email reminders.
  • ACH and credit card payments.
  • Auto-charge and auto-pay.
  • Invoice data capture.
  • 360-degree vendor info.
  • Unlimited document storage.
  • ACH, check, credit card, and international wire transfer. Cons

The main thing to remember about is that you must even pay a monthly fee to start using the service.

Plans cost a minimum of $45/month, and they can scale upwards depending on whether you also want to receive payments through and the kinds of additional features you want.

Another drawback to is that contractors must sign up for an account on the platform to receive their payments electronically. You’ll add more work for your vendors if you choose this platform.

Melio Comes Out on Top For Most Business Owners

When you compare the pros, cons, and features offered by each platform, it becomes clear that Melio is the smarter decision for most business owners.

That’s true for a few reasons.

First, Melio is free to start using. You only pay something for it if you use a specific payment method, such as sending an expedited paper check or paying with your business credit card.

Additionally, Melio makes life easier for your contractors. They won’t have to worry about setting up an account and linking their bank account to a platform they’re unfamiliar with to get their money if they opt-in to simply receive a check. is still a solid option, and it may be a better fit for business owners looking for premium services like AI-powered insights and more scalability.

But’s high entry price means it needs to deliver a ton of extra value to justify the price. In our opinion, it simply doesn’t meet that threshold for many budding small businesses.

That’s why Melio is our winner when it comes to Melio vs.

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Kellan Jansen
Written by:
Kellan Jansen

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