Invoicing and ACH Direct Debit

Configure, create, and process invoices using ACH Direct Debit.

To reduce costs, many merchants make card payment methods unavailable above a certain invoice total amount, and prefer payment from bank methods like ACH Direct Debit.

This guide provides step-by-step instructions on how to configure, create, and process invoices to use the ACH Direct Debit payment method. Stripe users in the United States can accept ACH Direct Debit from end customers with US bank accounts using the Automated Clearing House (ACH) payments system operated by Nacha. A Connect platform that integrates ACH Direct Debit has more advanced options available. To begin, determine whether:

Your customers enter bank account information to pay their invoices.
You collect and verify bank account information upfront and automatically process invoices.

Note

If you give a customer an invoice link to pay a one-off invoice, Stripe automatically saves their bank information allowing reuse on future invoices. You can also add the bank customer’s information directly through the customer details page.

Set up ACH Direct Debit

You can either set ACH Direct Debit as a default payment method, or add it when you create an invoice.

To set ACH Direct Debit as a default payment method type:

On the Billing settings page, under Invoicing settings > Default payment methods, click Edit payment methods.
On the Billing Payments page, under Bank debits, click Turn on to enable ACH Direct Debit as a default payment method.

Your customers can pay an invoice by using the Hosted Invoice Page to enter their bank account information or select the default payment method. If there isn’t a default payment method, the invoice includes all available payment methods.

Pre-collected bank information

You can collect bank account information for future payments with ACH Direct Debit. After you add a customer’s ACH details, they must verify their payment information with microdeposits, which can take up to 2 days.

To pre-collect a customer’s bank information:

On the Customers page, select a customer name.
On the customer page, under Payment methods, click the plus (+) symbol, and select Add US bank account.
On the Add a US bank account page, enter the payment details, and click Add US bank account.
After verification, click the overflow menu () next to the payment method, and select Set as default.

Whenever you create a new invoice for your customer, select Charge immediately to automatically charge the default payment method on file. For a finalized invoice, you can also click Charge customer on the invoice details page, and select the saved ACH Direct Debit payment method to initiate the transaction.

Payment completions

For any invoice with ACH Direct Debit enabled as a payment method, your customer can enter their bank account information on the Hosted Invoice Page to start a debit payment.

Your customer must do the following to complete payment:

On the Hosted Invoice Page, select US bank account.
Search for and select the bank.
Initiate login with the bank and agree to the terms of service.
Select the bank account and click Connect account.
After successfully connecting the account, click Back to go to the invoice.
Click Pay and agree to the terms of service.

Enhanced fee splitting Connect

Payment methods (such as credit and debit cards) have a fixed percentage charged over the whole amount. But low cost payment methods (such as ACH Direct Debit) are usually capped. For platforms looking to dynamically reflect this fee arrangement to their businesses, Stripe recommends that you separate your charges and transfers (as opposed to using the basic application_fee_amount parameter). With separate charges and transfers, your platform can transfer the business’ share of funds minus the appropriate fee amount based on the payment method type.

Test the integration

You can test customer bank account entry through instant verification or microdeposits.

Instant verification

You can instantly verify a bank account in a sandbox. Refresh the page to view the paid invoice.

Create an invoice in a sandbox.
Under Payment collection, select Request payment in full > Manage payment methods.
In the Payment methods for this invoice dialog, enable ACH direct debit, and click Save.
Enter the invoice details, and click Send invoice.
On the invoice details page, under Details, click the Payment page link.
On the Hosted Invoice Page, select US bank account > Test Institution.
Initiate login with the bank and agree to the terms of service.
Select the bank account and click Connect account.
After successfully connecting the account, click Back to go to the invoice.
Click Pay and agree to the terms of service.

Microdeposits

You can manually verify bank accounts using microdeposits. In live mode, it takes several days for the transaction to complete. But in a sandbox, the transaction clears immediately and the invoice is paid.

Create an invoice in a sandbox.
Under Payment collection, select Request payment in full > Manage payment methods.
In the Payment methods for this invoice dialog, enable ACH Direct Debit, and click Save.
Enter the invoice details, and click Send invoice.
On the invoice details page, under Details, click the Payment page link.
On the Hosted Invoice Page, select US bank account, and then click Pay.
Click Enter bank details manually instead to verify the bank account with microdeposits.
In the Enter bank details dialog, click Use test account to use a test routing number and bank account.
After successfully adding the account, click Back to go to the invoice.

Next, finish initiating microdeposits in your Stripe account. You can expect an email with instructions within 1-2 business days.