Stripe integration (Basic): Add ACH Direct Debit payment method
TaxDome offers a variety of methods for clients to pay—credit/debit card, electronic check/bank transfer, and even cash (if a client prefers paying in person). Here, we show you how to set up ACH direct debit, which allows your clients to send payments directly from their US bank account to your Stripe account using TaxDome.
ACH Direct Debit, explained
Automated Clearing House (ACH) direct debit allows your clients to pay using their bank account details. They must accept a mandate and authorize you to debit their account.
The transaction takes up to 4 business days as ACH direct debit is a delayed notification payment method.
You can read more about Stripe processing fees for ACH direct debit payments.
Step 1. Enable ACH Direct Debit on Stripe
Setting this payment method up begins from the Stripe Dashboard.
1. Go to Settings and then to Payment methods.
2. In the Bank debits section, click Turn on to the far right of the ACH Direct Debit option.
Step 2: Set up Stripe on TaxDome
After everything is set on Stripe, in the TaxDome portal:
- Connect your Stripe account to TaxDome. Here is how to connect to Stripe.
- Make Stripe your default payment provider. Go to Settings > Integrations from the sidebar menu. Here's more on selecting a payment processing provider.
- Select either Bank Debits or Credit Card or Bank Debits as a payment method in the Payments tab. This can be done only by a firm owner or admin.
When you select both, you’ll be able to specify the preferred payment method for each invoice you issue, or you can let the client choose.
What does the client see?
Once you have enabled ACH direct debit payment, your clients will see the US bank account option in their payment window.
To proceed, a client needs to enter their Email and Full name, and indicate bank account details. This could be done either by:
- Selecting the bank,
- Searching for the bank by its name, OR
- Entering bank details manually
If the client selects a bank, Stripe will ask them to log in and choose their account. If the client clicks Enter bank details manually, Stripe will verify the account using micro-deposits.
Micro-deposits are small amounts of money (usually just a few cents) that Stripe sends to the client’s bank account to confirm it belongs to them. This process might take a few days. Once the client sees these small deposits in their bank account, they need to enter the exact amounts in the Stripe window to complete the verification.
Note! There is no option to turn off micro-deposits because Stripe uses them as a security measure to allow only account owners to pay. If you don't want your clients to go through this verification, let them pay only using a credit/debit card.
To make a payment, the client needs to enter their bank account details:
- Routing number
- Account number
- Account number again to confirm it
After the client clicks Continue and then Pay, Stripe sends the information to the bank and waits for approval. Payment status remains Verifying payment or Incomplete until it goes through. (Here's more on payment statuses.)
