Compliance: Stay Compliant with ACH Payments on Stripe

Modified on Tue, 3 Mar at 4:21 AM

Overview

Stripe is tightening requirements for ACH Direct Debit to align with Nacha operating rules. If you accept US bank account payments through the platform using Stripe, you may need to update your Stripe account details so customers can clearly identify your business on bank statements and have a way to contact you. 

NOTE - effective 20 March 2026

Who needs to take action?

You have a Stripe account connected to the platform and accept ACH Direct Debit or plan to accept US bank account payments
Your account/client who has a Stripe account connected to the platform and accepts ACH Direct Debit or plan to accept US bank account payments

What you need to do in Stripe

You must choose how Stripe should classify your bank payment transactions. Stripe provides three options:

Automatically classify transactions - Stripe determines whether each transaction represents a purchase of goods based on available signals such as merchant information and transaction details. This works for most businesses and requires no code changes.
Classify all ACH transactions as goods - Choose this if you exclusively sell physical or digital products. All ACH transactions are classified as purchases of goods.
Do not classify any transactions as goods - Choose this if you provide services, accept donations, or collect bill payments rather than selling goods.

How to configure transaction classification in Stripe

Open your Stripe Dashboard
Go to Settings, then Payment, then look for Link

Locate the Nacha compliance section

Select one of the three classification options
Save your changes

FAQ

Does the platform make these updates for me?

No. These are settings on your Stripe account, so you must update them in Stripe Dashboard.

I am not sure what to select here, who can help?

This change and setting of the option is fully in control of Stripe. If you are facing issues in getting complete clarity, you must try reaching out to Stripe support. 