Introducing ACH Direct Debit as a new payment option for invoices, supporting one-time invoices, Text2Pay links, and recurring invoices with auto-payments.
Please be aware - ACH bank transfers usually require 5-6 business days for settlement, thus the payment status may display as processing until fully settled with the bank.
Availability and pricing
- Stripe accounts in the following countries can accept payments using ACH Direct Debit as a payment method.
- Stripe pricing differs for ACH Debit options than usual Cards or Google Pay/Apple Pay transactions.
Usual payment flow for ACH Direct Debit payment method
Accepting bank accounts is slightly different from accepting cards:
- Your customer must authorize the payment terms.
- Bank accounts must be verified.
Settlement timing for ACH payment method and transaction failures
ACH transactions are not instantaneous, typically requiring 4-5 business days for bank confirmation of payment. Therefore, invoices paid via bank transfer won't be instantly settled but will instead transition to Payment Processing status, with the final outcome marked as success or failed upon confirmation from the bank's end.
ACH Direct Debit transactions can fail at any time after the payment is initiated through payment confirmation. These failures can occur for a number of reasons, such as:
- Insufficient funds
- An invalid account number
- A customer disabling debits from their bank account
If a payment fails after funds have been made available in your Stripe balance, Stripe immediately removes funds from your Stripe account.
Verification and mandates
Stripe empowers your customers to securely connect their financial information with your business by linking their accounts. Leverage Financial Connections to securely access customer-approved financial data, including tokenized account and routing numbers, balance insights, ownership details, and transaction history.
ACH Direct Debit rules require that you first get permission from a customer to take payments before you can debit their bank account. To get this permission, you present a mandate to them. This mandate specifies the terms for one-time or recurring payments. The customer must agree to this mandate before you can collect any payments from their bank account.
We display this mandate on the payment page for you to allow leads to complete the payment process smoothly
FAQs
Can my leads enter bank details manually instead of connecting their bank account?
No, we are using Financial Connections as of now. Entering bank account details manually and authorizing with microdeposits is not available at the moment
Will the US Bank Account option be available along with Apple Pay and Google Pay?
Yes, Apple Pay and Google Pay options will still remain available for the customers alongside US Bank Accounts. This leaves the contact/lead to pay with any option - Cards, Apple Pay or Google Pay and US Bank accounts, provided the payment methods are supported in the respective geography.
I don't want to show a US Bank Account as a payment method. What should I do?
We strongly recommend using US Bank Accounts as a payment method since more payment method choices leads to more conversions. If you still want to turn this off, you can do that in the Stripe Dashboard under Payment methods.