What is ACH with Plaid? (Available in the US only)

Modified on Fri, 11 Nov 2022 at 10:42 AM

ACH is a bank transfer and is only available in the US. Plaid, the name of the company, connects accounts from any bank or credit union in the US to Pet Sitter Plus as a payment solution. Plaid is integrated with Stripe, so you only need a Stripe account to accept credit cards and ACH transfers. Stripe offers a simple, convenient way for clients to pay invoices with a credit and / or a debit card.


What is ACH?

ACH stands for Automated Clearing House and is an electronic network for financial transactions in the United States. Instead of entering credit or debit card details, your client links their bank account in the client portal. In doing so they authorize you to take payments directly from their account.

Once a client has linked their bank account, payment processing options are the same as if the client had entered their credit card, such as:
  • Bulk payment processing: Take multiple payments from multiple clients in a single action.
  • Pay Now: Enables clients to make payments in the client portal.

Benefits of ACH

  • In the US, Industry standard credit / debit card fees are 2.9% plus $.30 per transaction. If you process around $10,000 a month fees total about $320.
  • The rate for ACH is 1.2% with no transaction fee so on $10,000 the cost would be as low as $120.
  • This would save $200, reducing payment processing fees by 62.5%.

What is Plaid?

Plaid is a company that partners with Stripe to make ACH easy to use and quick to implement.

Benefits of Plaid

  • Adding bank account details is easy. Plaid enables clients to add bank account details without having to enter their router code and account details.
  • Instant account authentication. Plaid authenticates accounts instantly, allowing you to take payments from a newly linked account. Older "micropayment" methods took up to two weeks. 
  • Plaid works with Stripe. Plaid has partnered with Stripe to tokenize ACH for maximum security.
  • Limit NSF fees. Plaid checks bank balances in real time to limit "NSF" (Non sufficient funds) fees.

Can I Use ACH outside the US?

ACH is an electronic payments network for financial transactions in the US. If your business is based outside the US, it is unlikely you can use ACH, unless your business was incorporated in the US, your Stripe account is based in the US and you have a US based bank account in USD$.

Do I Need a Stripe Account?

Yes. ACH works with your Stripe account. If you do not have a Stripe account, you can apply for one.

Can I Use an ACH Service from Another Payment Processor?

No, our implementation of ACH requires that you have a Stripe account.

How Long Does it take for ACH Payments to Deposit?

ACH payments take up to 5 business days to receive acknowledgement of success or failure. Because of this, ACH payments take up to 7 business days to be reflected in your Stripe balance.

How Do I Start using ACH with Plaid in my Account?

Follow the instructions on this page Stripe Use ACH with Plaid.

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