Knowledge Base Getting Started Frequently Asked Questions

How to pay bills using Payit™

This article explains how to pay bills with Payit™ from within your FreeAgent account.

For guidance on how to pay bills with Payit™ using the FreeAgent mobile app, please see this article.

Please note that Payit™ is only available if you have full (level 8) user access to your FreeAgent account and if a NatWest, Royal Bank of Scotland or Ulster Bank NI business current account is your primary bank account in FreeAgent.

What is Payit™?

Payit™, a service provided by NatWest, is a fast and simple way to make payments. It uses Open Banking to let you make secure payments from your NatWest, Royal Bank of Scotland or Ulster Bank NI business current account to any other major UK bank without leaving FreeAgent. Payit™ is free to use and no fees are applied.

Before you get started

You will need to ensure that person you want to pay is set up as a contact in FreeAgent before you can use Payit™ to make a payment to them.

How to pay a bill with Payit™

1. Preparing the bill

Navigate to the 'Bills' tab, select 'Add New Bill' and then follow the steps for creating a bill in FreeAgent.

2. Preparing the contact

Adding the supplier’s bank account details

If you’ve not added the supplier’s bank account details to their contact page in FreeAgent, you’ll need to do so by editing the contact and then adding their bank account details. If you have already added the supplier’s bank account details, please go straight to the instructions for adding a payment reference to the bill.

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Adding a payment reference to the bill

If you didn’t add a payment reference when you first created the bill, you can do so now by selecting the reference of the relevant bill and then selecting ‘Edit’. The payment reference can be up to 18 characters long and must only contain letters and numbers. Complete the ‘Payment Reference’ field and then select ‘Save’. 

The payment reference of the bill is the reference that your supplier will see when you pay the bill. If you don’t enter a payment reference, the bill reference will be used automatically instead.

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3. Paying the bill

Once the bill has been prepared, it will be ready to be paid. To pay the bill, select ‘Bills’ from the menu at the top of your screen. Click on the reference of the bill you’d like to pay. Next, select ‘Pay now with Payit™’ in the ‘Pay this bill’ area on the right-hand side.

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Next, you’ll see a confirmation page where you'll be able to review the details of the bill before paying it. Select ‘Continue’ to proceed.

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Next, you’ll be taken through your bank’s online banking login journey to authorise the payment. Please follow the prompts given to you by your bank. You will need to complete this step each time you pay a bill using Payit™.

If the payment isn’t immediately approved, the bill will be marked as ‘Payment pending’. Once the payment has been authorised by your bank, the bill's payment status will update automatically to ‘Payment approved’. If the payment attempt is unsuccessful, you’ll see a red notice on the bill within FreeAgent and will also receive an email with the subject line: 'Notice: your bill payment was unsuccessful'.

Once the payment has been authorised by your bank, you’ll be directed back to FreeAgent and the bill will be marked as ‘Payment approved’.

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Managing the transaction in FreeAgent

Once the bill is paid, the transaction will appear in the 'Banking' section your FreeAgent account during the next import if you have a bank feed set up. If you don’t have a bank feed set up, you will need to either upload the bank transaction to FreeAgent or enter it manually.

If you’ve enabled the ‘Guess’ feature in FreeAgent, the software will attempt to match the imported or uploaded transaction to the appropriate bill and mark the bill as paid. If you’ve not enabled the ‘Guess’ feature, you can explain the bank transaction manually, choosing ‘Bill Payment’ as the transaction type.

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