How to use Financial Connections- ACH via Stripe?

Modified on: Wed, 14 Feb, 2024 at 7:07 PM


How to configure financial connections for Direct Debit payments using Stripe?

What are the direct debit options supported for US customers via Stripe?

What type of verification is performed for Stripe financial connection payment method?

What type of charge will Chargebee use when creating a charge via Stripe for the ACH payment method?
Which type of charge will Chargebee be using: Direct charges, Destination charges, or Separate charges and transfers with the merchant’s Connected account?



Stripe supports three modes of verification:

  • Via Plaid, a third-party application that authenticates bank information. 

  • Via micro-deposits, wherein the customer communicates the precise amounts (which are usually in cents, hence the name) transferred to the bank account to prove that the person has access to their bank statements.

  • Via Financial Connections, which is Stripe’s proprietary instant verification method, can be used to access users’ financial data with permission. This data includes tokenized account and routing numbers, balances, ownership details, and transactions.

    Financial Connections provides a secure platform for your customers to link their bank accounts to your business, enabling the secure sharing of this vital financial information. Note : Chargebee integration will opt for direct charges.

Please reach out to our support team to enable this feature.

Once enabled, navigate to Settings > Configure Chargebee > Payment Gateways > Stripe > Enable Use Financial Connections for instant verification.


Using Financial Connections

Prerequisite: Ensure to enable Financial Connections in your Stripe account before configuring it in your Chargebee site.

Please reach out to our support team to enable this feature.

Follow the steps below to enable Financial Connections for your ACH payments via Stripe in your Chargebee site:

  1. Once enabled, navigate to Settings > Configure Chargebee > Payment Gateways > Stripe.

  2. Enable Use Financial Connections for instant verification.

  3. Click Save.

Stripe will notify Chargebee in the event of a verification failure. In such instances, Chargebee will mark the payment method as INVALID. Customers will have to repeat the whole process once again.

1. When you are configuring Stripe and enabling Direct Debit (ACH/eCheck) for the first time, you will see Financial Connections as the only option for bank account verification. On the other hand, all users who have Plaid enabled in their ACH via Stripe configuration will continue to see Plaid as the only available option.

2. By default, Stripe uses Micro Deposits method for verification when a specific verification method is not selected

Demo video (Checkout, UI & Portal)

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