How does Stripe handle bank account access during ACH setup, and are there alternatives?
Introduction
Many users setting up ACH (Automated Clearing House) payments with Stripe may have concerns about the security and privacy of their bank account data. This article explains Stripe's handling of bank account access during ACH setup, addresses common misconceptions about permissions, and outlines alternative methods for setting up autopay.
Why Does Stripe Require Bank Account Access?
To securely link a bank account for ACH payments, Stripe may ask users to log in to their bank. This process ensures:
Secure Account Linking: By signing in, Stripe can verify the account details directly.
Accurate Information: It reduces the chances of errors or incorrect details.
This method provides a seamless and secure way to link bank accounts for autopay.
What Level of Access Does Stripe Get?
Contrary to common concerns, Stripe does not request full control over the user's bank account. During ACH setup, users are asked to grant read-only access. This access allows Stripe to:
Retrieve baseline banking information needed to facilitate payments
Communicate with the bank via a secure API for billing purposes
Importantly, this does not mean Stripe has full access or control over the bank account. Stripe strictly accesses billing-related information and does not handle personal account functions.
Are There Alternatives to Linking a Bank via Login?
Yes, users who prefer not to log in to their bank through Stripe can manually add their ACH account details. This alternative involves directly entering the necessary banking information, such as:
Routing number
Account number
While manual input offers an alternative, it may require additional verification steps to ensure accuracy and security.
Conclusion
Stripe's secure processes for ACH setup aim to provide a balance between convenience and security. By offering both an automated login option and a manual alternative, Stripe accommodates varying user preferences while maintaining high security standards. If you have further questions about setting up ACH payments on Stripe, please consult our additional resources or contact customer support.