Adding ACH (Automated Clearing House) as a payment option in Stripe gives your US-based customers greater flexibility by enabling direct payments from their bank accounts. This is an excellent alternative for those who prefer not to use credit or debit cards.
Reasons to Allow ACH Payments:
Lower Fees for Businesses: ACH payments have lower processing fees compared to credit/debit cards, making them cost-effective for larger transactions.
Recurring Payments: ACH supports automated, recurring transactions and are great for memberships!
Security: ACH transactions are secure, using encryption and fraud prevention measures.
No Chargebacks: Unlike credit cards, ACH payments don’t have chargeback risks.
Faster than Checks: ACH is quicker than paper checks, with no risk of delays or loss.
Limitations to Consider:
Processing Time: ACH payments can take 3-5 business days to process, which may delay cash flow.
Failed Payments: Payments can fail due to insufficient funds or incorrect account details, leading to delays and additional work.
Limited Reach: ACH payments are only available in the U.S. for now. If you're interested in adding more payment methods to your Stripe checkout, please check out the linked guide. We hope to expand bank direct transfers for other countries soon.
Account Verification Delays: Verifying bank accounts can delay processing, especially if microdeposits are used.
Who can use this feature?
Accepting ACH payments with Stripe is available only to accounts based in the USA with USD as their currency in Punchpass (Manage > Settings > General Settings).
How to Add or Remove ACH as a Payment Method on Your Stripe Checkout
ACH is automatically active and available when you set up your Stripe account, making it easy for you to accept ACH payments without any additional steps. If you prefer not to accept this payment method, you can easily turn it off in your Stripe account settings.
How to Change Your Payment Method Settings
Log into your Stripe account. To adjust your payment methods, click on the gear icon in your Stripe account, and in the Payments section, select Payment Methods.
On the Payment Methods screen, you'll see a variety of payment methods.
Enable or Disable ACH Direct Debit. If you don’t see ACH as an option, then ACH isn't available for your account. If you believe it should be available, please contact Stripe support.
When enabling ACH payments, if Stripe prompts you to set up webhooks, it's safe to press the Turn on anyway button and continue.
Customize policies and contact information. If you decide to collect customer information with ACH Direct Debit payments, Stripe might guide you to turn on your Privacy Settings within your Stripe account.
These privacy settings allow you to display your return, refund, and legal policies, and your support contact information to your customers on Checkout.
Go to Stripe's Checkout Settings to configure the information you want to display, including:
Details about your return and refund policies
Your support phone number, email, and website
Links to your terms of service and privacy policy
For more information please visit Stripe's support guide on configuring support and legal policies.
With ACH is enabled, it can be used as a payment method in Punchpass for:
Passes
Tickets
Recurring Membership Payments
Fees and Processing Times for Bank Direct Payments
Stripe charges 0.80% per ACH payment, capped at $5.00. For example, a $100 payment incurs an $0.80 fee, while payments above $625.00 are capped at $5.00. Please see Stripe's Pricing & Fees page for the latest fee information.
ACH payments are not immediate can take several days to process.
The ACH Payment Purchase Experience for Customers
When ACH is enabled, customers can select ACH as their payment option at checkout:
Standard Checkout: Customers purchase their pass, membership, or ticket as usual online using Punchpass.
Select US Bank Account: On the Stripe checkout page, customers will select the option to pay with a US Bank Account as their payment method.
Bank Account Connection: Customers can create a direct link to their bank by searching for it and following the prompts to create a Stripe connection or by manually entering their bank details.
Linking Stripe to a Bank: Customers will search for their bank by name and will then be prompted to log in to their bank account.
Manual bank account entry: A customer will enter the required bank information and account numbers. Stripe will initiate micro-deposits to verify the account. This process may take additional processing time.
After entering in their information, they'll see this notice:
Bank Account Connected: After adding a bank account, customers will see a summary of their payment methods on the screen. To complete the transaction, customers should press the Pay button.
Confirmation: Customers are redirected to the purchase thank you page after completing the transaction.
Notifications to Customers
Pending Payment Email to Customers
ACH payments may take several days to process. Customers will receive a "Pending Payment" email notification to keep them informed of the transaction status.
Customers will be able to see the payment status of their ACH paid passes from their customer accounts:
How do I Handle Payment Failures or Disputes?
Failed Payment Notification Emails
If an ACH payment fails, both the business and the customer will receive an email notification.
When the payment fails, the associated pass will automatically be suspended and unavailable for the customer to use until payment has been received.
Refunding Purchases Made Using ACH Bank Direct Debit
You can refund ACH payments using the same steps as other Stripe transactions processed through Punchpass. See our guide for more details on refunding purchases.
Frequently Asked Questions About ACH Payments
Can I choose which passes are eligible for this payment method?
With ACH payments enabled, someone can purchase any of your offers sold through Stripe using this payment method. This option can't be turned off for certain offers.