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What are the verification fees for ACH connections?

Bank Account Verification and Verification Fees for ACH Payments

Also searched as: ACH setup, bank verification fee, Stripe verification, $1.50 fee

When a resident sets up ACH payments, they enter their ABA bank routing number and account number. Stripe must verify the account is valid before it can be used to process payments. Stripe verifies accounts in one of two ways.

 The "Old-Fashioned Way": Microdeposits

(also: micro-deposit verification, legacy verification method)

With this method, Stripe deposits several small amounts (a few cents each) into the resident's bank account. The resident then verifies the date and amounts of these microdeposits — this is the method PayPal used to use.

Problems with this approach:

  • Several days can pass between submitting bank info and the microdeposits actually appearing, so the resident can't pay while they're thinking about it.
  • The resident must remember to log in to their bank account, find the deposit details, and report them back to Stripe.
  • Many things can go wrong: forgetting to check for the deposits, checking too early, or forgetting to report the amounts.
  • The process relies entirely on the resident's memory and follow-through.

Because this doesn't work well for how residents want to pay — and doesn't make it easy for them to pay on time — this is not the method used for ACH payment setup in the system.

 The "Instant Verification" Procedure

(also: instant bank verification, real-time ACH setup)

This process lets the resident submit their bank account information and begin using it for ACH payments almost immediately, as long as their financial institution is one Stripe supports. The payment process moves seamlessly from account selection to payment readiness.

 The Verification Fee

  • Stripe charges a $1.50 account verification fee each time a resident adds a bank account for ACH payments.
  • This is a one-time fee that does not coincide with any specific payment or bank deposit.
  • If someone removes and then reconnects a bank account, it is treated as new and must be verified again (another $1.50 fee).

 Why the Fee May Not Be Obvious

Because the fee doesn't occur at the same time as the triggering action, its cause may not be obvious right away.

  • If you notice a $1.50 difference (or a multiple of $1.50) between the amount deposited to your community bank account and the sum of payments in that deposit, ACH verification fees are the reason.
  • Stripe holds these fees during the month and "bundles" them into a single charge at the beginning of the following month.

 How to Review ACH Verification Fees in Stripe

  1. Log in to your Stripe account.
  2. In the left menu bar, click Transactions.
  3. In the Transactions window, select the All activity tab.
  4. In the filter row below the tabs, click Type and select Stripe fees.
  5. Your Transactions list now shows only the Stripe fees.