Your complete guide to ACH payments with Stripe in Canada

Accepting payments efficiently is at the heart of any successful business, and for many Canadian companies, Stripe makes that easier with support for ACH payments. If you're looking to simplify how you get paid or send funds to suppliers, understanding how ACH works with Stripe in Canada can streamline your operations.

This guide breaks it all down, from local to cross-border transfers, and explores when Wise might offer a more flexible, cost-effective alternative for international business needs.

Does Stripe support ACH payments in Canada?

Stripe doesn’t currently support traditional ACH debit or credit transfers for Canadian bank accounts. ACH (Automated Clearing House) is a US-based payment system, meaning ACH payments through Stripe are only available for bank accounts based in the United States¹.

However, Canadian businesses can still accept ACH payments from US customers by linking a US bank account to their Stripe account. This setup is common for cross-border businesses that want to get paid by US clients using the ACH network.

For domestic payments within Canada, Stripe recommends using Pre-Authorized Debit (PAD)². PAD works similarly to ACH debits by allowing businesses to withdraw funds directly from a customer’s Canadian bank account, but it operates under Canadian regulations and uses a different payment system (governed by Payments Canada)³.

It’s also worth noting that while Stripe itself does not support outbound ACH payments from Canada, you can send ACH payments from the US to Canada using a process called International ACH Transfer⁴. These transfers often involve:

• Currency conversion (from USD to CAD),
• Processing times of several business days,
• Variable fees depending on the provider, and
• Exchange rates that impact the final amount received.

Not all banks or providers support International ACH Transfers, and there may be limits on the transfer amount or additional compliance requirements.

Stripe ACH Canada – Receiving payments in CAD and USD

Stripe offers Canadian businesses several ways to receive payments, but ACH Direct Debit support is limited to US bank accounts. Even though you can't currently receive ACH payments in CAD through Stripe, options are still available to help you collect payments locally and cross-border.

How ACH Direct Debit works with Stripe for Canadian businesses

If you're a Canadian business that needs to collect payments from US customers, here’s what you need to know:

• You need to connect a US bank account to your Stripe account. ACH debits are only supported for accounts denominated in USD and located in the US.
• Stripe requires you to collect customer authorization via a Stripe-hosted mandate form before initiating ACH debits⁵.
• ACH payments take 2–5 business days⁴ to process and can be reversed if the customer has insufficient funds or disputes the transaction⁶.
• Stripe charges 0.80% per ACH transaction, capped at $5 USD⁷.

Pre-Authorized Debits (PADs) for CAD transactions

For domestic payments in Canadian dollars, Stripe supports Pre-Authorized Debits (PADs)⁷ as an alternative to ACH:

• PADs allow businesses to debit Canadian bank accounts with customer authorization⁸.
• You'll need to provide a valid mandate form to meet Payments Canada requirements.
• Customers are required to provide their institution number, transit number, and account number.
• PAD transactions can take up to 5 business days to complete and are subject to dispute rules governed by Payments Canada⁹.
• Stripe handles mandate storage and recurring billing, making PADs ideal for subscription-based or invoice-driven business models.
• While Stripe does not support domestic ACH for Canadian bank accounts, PADs provide a compliant and convenient way to collect domestic CAD payments from Canadian customers via direct debit.

Sending ACH payments from Canada with Stripe

Stripe’s infrastructure in Canada is mainly designed to receive payments, not to send them. Here’s what Canadian businesses should know:

• ACH Direct Debit with Stripe is for collecting payments from US bank accounts only.
• Stripe doesn’t support initiating payments to Canadian bank accounts via the ACH network. Domestic payouts are handled through Interac e-Transfers or standard bank transfers (EFT), not ACH.
• For payouts to connected accounts, Canadian businesses can only send funds to local bank accounts in CAD through Stripe Connect. These are not ACH-based transactions but domestic transfers managed by Stripe.

Costs and settlement times for Stripe ACH in Canada

Even though Stripe enables Canadian businesses to accept ACH Direct Debit from US customers and Pre-Authorized Debits (PADs) in CAD, each payment method comes with its own cost and settlement window. Below is a breakdown of what you can expect when accepting ACH payments through Stripe.

^* Fees as of 19th May 2025

Stripe ACH Canada limitations for international payments

Even though Stripe offers ACH capabilities for Canadian businesses, there are clear limitations when it comes to international payments.

What’s supported

• Receiving USD payments via ACH debit: Canadian businesses can accept payments from US customers using ACH Direct Debit (via the US banking network), provided they have a US bank account connected to Stripe.
• Pre-Authorized Debit (PAD) in CAD is also supported, but this is primarily for domestic payments from Canadian customers.

What’s not supported

• Sending ACH payments internationally: Canadian Stripe accounts can’t initiate outbound ACH transfers to US or other international bank accounts.
• ACH Credit Transfers: Stripe mainly supports ACH debit, where businesses pull funds from a customer’s bank account after obtaining authorization. ACH credit — where a business pushes funds — is not available via Stripe in Canada.
• Multi-currency ACH acceptance: Aside from USD (via a US bank account), Stripe Canada doesn’t support receiving other currencies via ACH or PAD.

Commonly asked questions about Stripe ACH in Canada

Q: Can I receive ACH payments in Canada using Stripe?

A: Yes, but with some limits. Canadian Stripe accounts can receive ACH Direct Debit payments in USD if they’re connected to a US bank account. For payments in CAD, Stripe uses Pre-Authorized Debits (PADs) instead of ACH.

Q: Can I send ACH payments internationally using Stripe?

A: No, Stripe Canada does not support outbound ACH transfers to international bank accounts. Stripe’s ACH services are designed for receiving payments, not sending them.

Q: What is the difference between ACH and PAD?

A: ACH (Automated Clearing House) is the US system for bank-to-bank payments, used for transactions such as direct deposits and bill payments. PAD (Pre-Authorized Debit) is the Canadian equivalent, used to withdraw funds from a customer’s Canadian bank account with prior authorization. Both allow businesses to pull funds from a customer’s account, but they operate within different banking networks and have different compliance rules.

Comparing Stripe ACH with Wise for International Business Transfers in Canada

Choosing the right payment solution can make a big difference when your Canadian business deals with cross-border transactions. Stripe offers tools for accepting ACH payments within North America while Wise is designed to simplify international transfers, offering transparent fees and a wide range of currency support. Here’s how they stack up on the key features that matter most.

Why Canadian businesses use Wise for international payments

Opening a business account at Wise is free, online and easy! With Wise, you don’t lose money to monthly subscriptions or have it held up as minimum balance. You pay only for what you use. Here’s what you get for the essential and complete version for a one-time fee of 55 CAD:

You can always upgrade from the essential features to avail all Wise business features for a one-time payment of 55 CAD

Experience owning a Wise business account
with our demo >>>

It only takes a few minutes to set up your multi-currency account, and make the most of the mid-market exchange rate.

Step 1. Enter information relevant to yourself and your business.
Step 2. Share essential information about your business. This includes

• Business registration
• The business registered and trading addresses
• The industry you’re in
• Online presence
• Name, date of birth, country of residence - for all stakeholders
• Documents proving ownership of the business

Step 3. Enter essential information to verify your identity
Step 4. Set up and make a transfer as indicated on your account. Alternatively, you could pay the one-time fee and get account details in over 10 currencies.
Step 5. Wise sends you a confirmation email within 10 working days.

In case you add team members to the business account, they will need to be verified too.

Wise's has been reviewed and appreciated on public platforms such as:

• Trustpilot Canada: 4.3/5 stars with 256,776+ reviews
• Play Store Canada: 4.7/5 stars with 1.28M+ reviews

Final thoughts on ACH payments with Stripe

Stripe offers some ACH payment capabilities for Canadian businesses, particularly for receiving USD payments through a linked US bank account. However, its support is somewhat limited, particularly when it comes to sending ACH payments internationally.

If your business needs a more flexible, cost-effective solution for cross-border payments, Wise is a good alternative. Thanks to its multi-currency account, Wise lets you hold, send, and receive funds in 40+ currencies using low fees and the mid-market exchange rate while providing local bank details in major regions like the US, UK, EU, and more.

At the end of the day, knowing what your business needs most will help you pick the right tool to keep your money (and business) running smoothly. If you're mainly collecting payments within North America, Stripe may be enough. But for global payouts, vendor payments, or managing funds across currencies, Wise can significantly simplify your international financial operations as you grow.

Sources:

1. Wire transfer guide - Stripe
2. Canada PADs Debit - Stripe
3. Pre-authorized debit payments in Canada | Stripe Documentation
4. ACH Payments from US to Canada - Stripe
5. ACH Direct Debit | Stripe Documentation
6. ACH returns 101: What they are and how to manage them - Stripe
7. What an ACH payment is and how an ACH transfer works | Stripe
8. A guide to pre-authorized debits in Canada | Stripe
9. Pre-authorized debit payments in Canada | Stripe Documentation
10. Pricing & Fees - Stripe