Accepting ACH Bank Payments on Customer Invoices

Background

Patriot Software has partnered with Stripe to offer payment services to Accounting software customers so that your customers can pay their invoices by credit card or ACH bank payments.

Although Patriot does not charge for Stripe integration, Stripe does charge for payment processing. They will deduct the fee from the total invoice amount before sending you the payment.
Please read, Stripe FAQs for Accounting Customers for more information.

Using Stripe for ACH Payment Processing

If you don’t yet have an account with Stripe, your first step will be to apply for an account. Otherwise, you can connect your Stripe account to your accounting software. To apply with Stripe, you will need to log in to your Patriot Software account.

Go to Settings > Accounting > Transaction Settings. Under the “Payment Processor” section, follow the instructions.

You’ll need some basic information to apply. Stripe has stated that account approvals are nearly instantaneous. However, Stripe will send you an email if more information is needed.

Once Stripe approves you, Patriot will automatically connect your Stripe accounting to your accounting software. You’ll have the option to add a Stripe payment link when creating new customer invoices.

If you’re using Stripe for payments, you can decide how your customers will pay you. Here’s how to set up ACH Direct Debit as a payment option on your invoices.

Step 1: Set Your Payment Preferences

Navigate to Settings > Accounting Settings > Transaction Settings.
Choose your preferred payment methods. You can update these settings at any time.

Step 2: Create Your Invoice

When you create a customer invoice, the “Accepted payment types” will automatically reflect the settings you’ve chosen in Settings > Accounting Settings > Transaction Settings.

Step 3: Enable ACH Direct Debit Payment

If you want to accept ACH Direct Debit payments, make sure the “Include Stripe payment link” option is checked. You can choose to accept ACH Direct Debit, credit cards, or both for each invoice.

Step 4: Customer Payment Process

Once the invoice is emailed, your customer will see a “Pay Invoice” button at the bottom of the email.
Clicking this button will open a secure payment form in their browser where they can enter their payment information. If paying by ACH your customer will need to verify their bank information. There are two ways they can do this:
- Instant Verification: Customers can securely link their bank account instantly. Stripe charges $1.50 for this service.
- Manual Entry: Customers can manually enter their bank details, which takes 1-2 business days to verify, with no additional charges.

Following these steps will ensure your customers have the option to pay you using ACH Direct Debit, making the payment process smoother and more efficient.

Customer Payment Notifications

You can opt-in to receive payment notifications on the Transaction Settings Page (Settings > Accounting > Transaction Settings):

Payment Received – If checked you will receive a “Payment Received” email if you have elected in your Transactions Settings page to receive email notifications when a customer has successfully made an ACH Direct Debit card payment to your invoice.

Payment Failed – If checked, you will receive an email if you have elected in your Transactions Settings page to receive email notifications when a customer ACH Direct Debit payment has failed. You can check your Stripe dashboard for more information regarding why the payment failed.

Why isn’t the amount deposited by Stripe the same as the invoiced amount?

Remember that Stripe will deduct their processing fees from the customer payment before depositing the balance to your account. Stipe ACH Direct Debit fees are 0.8%, with a maximum of $5.00 per transaction, plus $1.50 if the customer uses the instant bank account verification.

You should always check with your accountant if you have any questions about setting up your chart of accounts or allocating Stripe ACH payments in your accounting software.

Also read, “Setting Up Credit Card Payments in Patriot’s Accounting Software.”