Instant Bank Payments: A Faster, Cheaper Alternative to ACH
Link was originally built to accelerate checkout by autofilling payment and shipping details, boosting conversion by an average of 14% for businesses with a strong returning-customer base. Stripe is now extending Link beyond a convenience feature, positioning it as a tool for reducing payment complexity and cost. The first expansion: Instant Bank Payments, a new way to accept ACH payments directly through Link.
With this feature, customers can pay from their US bank account in a few clicks. Unlike traditional ACH, transactions are confirmed instantly and settle in two business days—on par with card payments. Stripe guarantees the risk of bank-initiated returns, and pricing for U.S. bank account payments via Instant Bank Payments is 2.6% + 30¢ per successful charge, a discount compared to card processing fees.
Eliminating the ACH Delay
Traditional ACH payments can take up to four days to confirm, making them unsuitable for businesses that must deliver goods or services immediately. Instant Bank Payments match the speed of card transactions: payments are confirmed at checkout and authorized funds are guaranteed to settle within two business days.
This acceleration is enabled by machine learning models trained on the hundreds of billions of dollars in payments processed across Stripe's network—including billions of dollars of ACH transactions each month. These models manage transaction risk in real time, allowing Stripe to offer faster processing without requiring manual review.
Shifting Return Risk to Stripe
Standard ACH creates operational overhead when bank payments fail: merchants must notify customers, collect updated payment details, reprocess transactions, and absorb return fees. With Instant Bank Payments, Stripe guarantees the payment even if the bank later returns it.
Stripe's models aim to maximize successful payments and predict failures before they happen. This transfers the burden of bank-initiated returns away from the merchant, reducing the cost and complexity of handling failed payments.
A Checkout Experience That Builds on Link
Traditional ACH requires customers to log into their bank or manually enter account details each time. Instant Bank Payments are built into Link, letting customers connect their bank accounts on optimized checkout surfaces in just a few clicks. Returning Link users can reuse their bank accounts across different businesses for future purchases. According to Stripe, 85% of customers have chosen to make a repeat purchase with Instant Bank Payments.
Businesses like Uber and Anthropologie are already using the feature, citing the cost savings of bank payments without the typical delays or failure risk associated with ACH.
