Small businesses now have access to a low-cost credit card gateway after virtual payments provider Optimizer integrated its services with accounting software juggernaut Xero.

Optimizer's payment technology known as Swipe HQ allows businesses to insert a 'pay now' link into Xero invoices and get payment from credit cards from customers.

Chief executive of Optimizer, a New Zealand cloud-tech company, Manas Kumar said Swipe HQ offered businesses a low cost way to improve short-term cash flow.

Kumar said the option to pay by credit card was usually readily accepted by customers as the credit card company offered additional payment days as well as loyalty rewards.


"For the supplier, the improvement in cash flow and reduction in administrative resources required to chase outstanding accounts far outweighs the 2.75 per cent transaction fee for the service.

"In our experience, businesses which introduce our card payment links into their accounting process get paid faster," Kumar said.

Xero managing director Victoria Crone, said the introduction of Swipe HQ into the Xero ecosystem was a welcome addition.

"Cashflow is hugely important to our small business customers."

"By combining Swipe HQ with Xero, customers can bring invoice presentation and payment online and get paid faster," Crone said.

In 2012, Optimizer launched Swipe HQ Checkout, a virtual credit-card merchant facility that lets businesses accept credit card transactions without the need for a terminal and at a lower cost than its competitors.

Swipe HQ's credit card reader for processing transactions