Auto debit FAQ

Which countries support auto debits?

Auto debit is supported in Australia, Canada, New Zealand, SEPA, the United Kingdom, and the United States.

Why would my bank account need to be debited?

Your bank account may need to be debited if your account balance goes into the negative. This is done so that any pending refunds on your account can be fulfilled in a timely manner, which in turn reduces the risk of customer disputes.

Why might the balance on my account go into the negative?

Your available account balance may go into the negative if the cost of refunds, disputes, or platform fees is greater than the existing balance. If your account has a negative balance, you won’t be able to issue refunds until the balance is returned to a positive state.

Does Stripe have permission to debit my account?

Your platform partners with Stripe for secure payments. As noted in the Stripe Services Agreement, you agree to allow Stripe to debit funds from your bank account to cover amounts you owe to Stripe, including negative balances on your account.

Why can’t I pay back the negative balance through future payments?

It’s important that your account does not hold a negative balance for long periods of time, as it may delay refunds to your customers, which could result in disputes and related fees. Continuous disputes can result in your business being added to a card network monitoring program. For this reason, a debit needs to be initiated as a response to a negative balance.

What happens if there are insufficient funds in my bank account to cover the debit?

The debit attempt will fail, and you may incur an overdraft or dishonor fee depending on your bank’s policies. Multiple subsequent attempts to debit your bank account will be made. As such, it's strongly strongly advised to ensure you have enough funds in your bank account to cover the debit amount.

Can I change the bank account from which the debit is taken?

Yes. You can change your bank account by updating the bank account linked to your Stripe account via your account. This also changes the bank account where your payouts are sent.

Note that updating your bank account does not affect Stripe's ability to debit the prior bank account under the SSA.

Can I add funds to my account via wire transfer instead of the auto debit?

Yes. You’ll find instructions on how to add funds to your account via wire transfer.

Do you debit me for every negative balance, or is there a threshold before you make a debit attempt?

You're only debited if your negative balance is greater than ten units of your local currency (for example, 10 USD, 10 GBP, or 10 EUR).

When will these debits occur?

The exact time that each debit occurs varies depending on which country your bank account is in. After the negative payout has been created, you should expect the debits to take place as follows:

For the best estimate as to when the funds will be debited from your bank account, check the Expected by date of the payout on your account

What are Stripe’s ACH company IDs and why might I need them?

Your platform partners with Stripe for secure payments. You may need to authorize Stripe to debit your US bank account. To do this, you'll need to contact your bank directly and provide them with Stripe's ACH company IDs.

What currencies are supported for auto debits?