There are two primary ways to move money between bank accounts in the U.S. using the Automated Clearing House (ACH) network. While the most common method is an ACH credit transfer, Dappr also offers the ability to deposit funds using an ACH direct debit.
This guide explains what an ACH direct debit is, the eligibility requirements for this restricted feature, and how to initiate a deposit if you have been granted access.
ACH direct debit vs. ACH credit transfer
It's important to understand the difference between these two types of transfers:
ACH Credit Transfer (Standard Method): This is a "push" transaction. You log in to your external bank account and use your Dappr Financial Account's routing and account numbers to push money from your external account to your Dappr account. This method is available to all users.
ACH Direct Debit (Restricted Feature): This is a "pull" transaction. From within your Dappr account, you authorize Dappr to pull a specific amount of money from your external bank account into your Dappr Financial Account.
Important: The ACH direct debit feature is intended solely for funding your Dappr Financial Account from another bank account belonging to your company or a stakeholder. It is not to be used for receiving payments from your customers for goods or services. Customer payments should always be processed through Dappr Sales, and ACH direct debit is generally an available payment method.
Eligibility and how to apply
Due to the risks associated with ACH direct debits, this is a restricted feature that is available by application only to select customers.
To be considered for access, your business must have an extensive account history with Dappr (generally a minimum of 6 months and a transaction volume of $20,000 or more).
If you meet these criteria and would like to request access, please email the Dappr team at [email protected] with the following information:
Your primary use case (why you need access to this feature).
The typical amount you anticipate depositing via this method.
How to initiate an ACH direct debit deposit
Once the feature has been enabled for your account, you can initiate a deposit from your Dappr dashboard.
From the main menu, navigate to Financial Account.
On the Overview page, click the three-dot actions menu next to the "Send funds" button (top left area).
Select Receive ACH or wire from the dropdown.
Choose Domestic ACH/wire and select your company's name as the sender, then click Continue.
The next screen will display your account details for a standard ACH credit. Click the Set up ACH debit instead button at the bottom of the popup.
Enter the amount you wish to deposit and click Continue.
Connect your external account:
You can select a previously linked external account.
To add a new one, click Connect new account. You can connect instantly by searching for your bank and logging in via Stripe Financial Connections.
If your bank is not listed, you can click "Manually verify instead" to use micro-deposits. This involves Dappr sending two small deposits (a few cents each) to your external account. You will then need to return to Dappr and verify the exact amounts of these two deposits to confirm you own the account. This process can take 1-2 business days.
Once your external account is connected, you will be taken to a final review screen.
Click Submit deposit and verify the transaction with the two-factor authentication code sent to you via SMS.
Your initiated deposit will now appear in the "Deposits" tab on your Financial Account Overview page with a "Processing" status.
Important note on security holds and limits
ACH direct debits carry a higher risk of reversal than other payment types. To protect the platform, Dappr may conduct reviews of these deposits. We may place a hold on deposited funds for up to 7 business days if a deposit is unusually large or deemed suspicious. We may also impose limits on the amount you can deposit in a single transaction or over a specific period.