ACH Payment Terms

Last updated: May 13, 2024

The ACH Network allows you to collect funds through debit or credit Transactions from US bank account holders. Terms specifically applicable to initiation of ACH Network Transactions are stated below. As with all Payment Methods, your use of Stripe’s products that access the ACH Network, including ACH Direct Debit Payments and ACH Credit Transfer Payments, bind you to these ACH Payment Terms (these “Terms”) and the Stripe Services Agreement. You accept and agree to comply with all of these terms.

Nacha: When submitting Transactions over the ACH Network, you must comply with the Nacha Operating Rules. Payment Method Rules include the Nacha Operating Rules.

ACH Authorizations: When you collect funds through ACH Network debit Transactions via the Stripe Payments Services, Stripe is operating as a Third Party Sender (as defined in the Nacha Operating Rules) and you understand and accept your role as the Originator (as defined in the Nacha Operating Rules), including to authorize the banks Stripe partners with to enable the submission of Transactions over the ACH Network (“ODFI Banks”) on your behalf to and from your Customer’s bank accounts. You must obtain your Customer’s authorization  to debit or credit their bank account and initiate a Transaction over the ACH Network. You are responsible for ensuring the authorizations  are in a form and manner that complies with the Nacha Operating Rules, Law and the Documentation for ACH Network Transactions. You must maintain data sufficient to provide or reconstruct any ACH Network Transaction authorization and provide Stripe with evidence of that authorization upon request. When you use Stripe to initiate ACH Network Transactions with your Customers, you represent and warrant that: (a) you have all necessary authorizations and approvals from your Customers for Stripe to transmit an ACH Network debit or credit Transaction to the Customer’s bank account and (b) the information you provide Stripe about each ACH Network Transaction is accurate, timely and complete, including the name of your customer that authorized you to initiate the ACH transaction to their bank account. You further warrant that any ACH Network debit Transaction that you initiate satisfies an obligation or corrects an error. Stripe is not liable for any return, reversal or other failure (or any related costs) arising from your acts and omissions, including failure to obtain your Customer’s authorization for an ACH Network Transaction. Stripe is permitted to document and store ACH Network Transaction authorizations, including their timestamp.

ACH Returns: You understand that Customers can request an ACH Network Transaction return if they believe the Transaction was unauthorized or otherwise not permitted by the Nacha Operating Rules. The ODFI Bank is obliged to refund the debits without question, as long as the request was received within 60 days (60 days for consumers and 2 days for businesses) from when the Customer receives their bank statement containing the unauthorized debit. If a return request happens, Stripe will immediately debit your Stripe Account (or a User Bank Account, if necessary) in the amount of the return request. There is also a process for late returns outside the 60 day window, which is solely managed by and decided at the sole discretion of the banks involved in the Transaction. The ACH Network does not have its own appeals process, so if you believe a Customer has wrongly requested a return on a Transaction, you will need to settle the dispute with the Customer outside of Stripe.

Bank Account Verification: Stripe may provide you with the ability to verify Customer bank accounts in conjunction with our ACH products. If you wish to use these Stripe services to verify Customer bank accounts, then Stripe will collect certain Customer bank account information, which information is Stripe Data as defined in the Stripe Services Agreement. Stripe may retain and process this Stripe Data as the terms of the agreement between Stripe and the Customer allow.

Funds Availability: You may be eligible to opt-in to have ACH Network debit Transactions funds made available to you faster than the standard timing for availability by agreeing to a higher fee per Transaction. You understand that the ACH return rules and timelines under Nacha Operating Rules remain unchanged if you elect for faster funds availability. If you opt-in for faster funds availability, you acknowledge and accept all risks associated, related to, or resulting from the faster availability of funds, including the risk of higher return or dispute rates. You understand that you continue to be liable to Stripe for the full amount of all Disputes, Refunds and Reversals (as defined in the Stripe Services Agreement) regardless of the reason or timing. Your eligibility to opt-in to faster funds availability is in the sole discretion of Stripe, and Stripe reserves the right to revoke your eligibility at any time. You agree that Stripe, in its sole discretion, may impose daily, transaction or other limits.  

Termination and Suspension: Without limiting Stripe’s rights to terminate or suspend your access to the Services under the Stripe Services Agreement, Stripe may also terminate or suspend your access to the ACH Network via Stripe for your violation of the Nacha Operating Rules, including if an ODFI Bank requires your suspension or termination, or if you exceed acceptable limits on returns.

Requests for Compliance Information: By collecting funds through ACH Network debit Transactions and as required by the Nacha Operating Rules, you will provide information and documentation requested by Stripe or the ODFI Bank (or their designated third-party auditor) for the purpose of ensuring your compliance with these Terms and the Nacha Operating Rules upon reasonable notice. You agree to cooperate with any request for compliance information and to respond to reasonable requests for information necessary to complete the compliance review in a timely manner.  Stripe may suspend or terminate your access to the ACH Network via Stripe immediately if you fail to provide information or documentation Stripe requests under this Section.

Warranty: You warrant to Stripe, as an Originator of Transactions made under the Nacha Operating Rules, that no Transaction delivered to Stripe or the ODFI Bank, if accepted by the ODFI Bank, will cause Stripe or the ODFI Bank to be in violation of any regulation or sanction administered by a Governmental Authority or otherwise cause Stripe or the ODFI Bank to be in violation of Law.

Account Numbers:  Stripe and any other person involved in an ACH Network Transaction may rely on the routing number and account number that you provide when giving a transfer instruction. If the name of the account owner identifies a different person from the account owner identified by the number, Stripe and any other person that handles the instruction may still rely exclusively on the number.

Nested Third Party Senders:  You must not submit ACH Network Transactions as a Nested Third Party Sender (as defined in the Nacha Operating Rules) through the Stripe Payments Services.

UCC4A Disclosure:  In the case of ACH Network credit Transactions subject to UCC Article 4A, these Terms serve as notice to you that: (a) the Transaction may be transmitted through the ACH Network; (b) the laws of the state of California will govern these Terms, unless you and Stripe have agreed otherwise; (c) credit to you for the Transaction as provided by the Nacha Operating Rules is provisional until the bank has received final settlement through a Federal Reserve Bank or otherwise has received payment or otherwise has received payment as provided for in Section 4A-403(a) of Article 4A of the Uniform Commercial Code; and (d) if the bank does not receive payment for the ACH Network credit Transaction, the bank is entitled to a refund from you in the amount of the credit to your account, and your Customer will not be considered to have paid the amount of the credit Transaction to you.

Additional Terms: To the extent you are using the ACH Network in connection with Stripe Services outside of collecting funds through ACH Network debit or credit Transactions, additional Services Terms may apply.