Add ACH Direct Debit payment method to Stripe

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.

Info

Payment methods in Stripe are enabled by default for TaxDome Payments users—no additional setup required.

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 transaction fees for ACH direct debit payments .

Microdeposit verification

Microdeposit verification is how Stripe confirms that a client owns their bank account for ACH debit payments. This verification is triggered when a client enters their bank details manually, either because their bank isn’t supported for instant verification or they prefer not to log in through the instant verification flow. It only works for US bank accounts and is not available for same-day or instant ACH.

Note

Skipping microdeposit verification when entering bank account details is available for TaxDome Payments users only.

The verification process works as follows:

1. The client enters the bank details manually, including their routing number and account number (entered twice to confirm).

2. Once the account is added, Stripe sends a confirmation email that the bank verification process has started.

3. Stripe sends a second email with a verification link. Two small deposits are also sent to the bank account. Both arrive within 1–2 business days. These deposits are not refunded—they will remain in the account.

4. The client clicks the verification link and enters the two deposit amounts shown in their bank statement to complete verification.

The client has 10 days to complete verification before the session expires. If the session expires, the client must restart the bank account setup flow. After 3 failed verification attempts, the account is permanently locked and the client must re-add their bank account.

Note

When a client signs a proposal or recurring invoice and has entered their bank details manually, automatic payments are not charged until the bank account is verified with microdeposits. It is expected that no payment attempts will appear in Stripe while the bank account is in a pending verification state.

After the client finishes payment, Stripe sends the information to the bank and waits for approval. The payment status remains Verifying payment or Incomplete until the payment goes through.

For common issues with microdeposit verification, see Payment issues & troubleshooting .

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 may verify the account using microdeposit verification.

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