Bank Setup: connecting your company bank account (setup guide)

This guide walks through Bank Setup: which account to connect, how to connect it (including when your bank isn't listed), what each status means, and how to make sure the monthly withdrawals go through.

What this bank account is for

This is the company account that funds your employees' reimbursements. Approved auto-reimbursements are withdrawn from it on the 25th of each month and reach your employees around the 1st. More detail: The 25th rule.

It isn't for your StretchDollar subscription. Subscription fees are paid separately, on the Billing page, by card or bank account. You can use the same business account for both, but you have to add it in each place: How do I add a credit card or bank account for billing?

Which account to connect

Connect your business checking account: an account in your business's name that you use to pay business expenses. Reimbursements are a business expense, so they need to come from the business's own account.

Don't connect:

  • A personal account, even if you own the business. If your business doesn't have its own bank account (for example, some sole proprietors), contact us before you connect anything.
  • A Health Savings Account (HSA). An HSA belongs to one person and can only pay that person's own medical costs, so it can't fund your team's reimbursements.
  • A savings account. The withdrawal on the 25th comes from whichever account you connect, so connect the one that holds your operating funds. Savings accounts can also limit withdrawals.

When you log in to your bank, Plaid may list every account you have there, including personal accounts and HSAs. Check the account name and the last 4 digits before you confirm. Connected the wrong one? See Changing banks below. If money has already been withdrawn from the wrong account, contact us.

Before you start

  • Have your online banking login handy. If you don't bank online, have your routing and account numbers instead.
  • Ask your bank to allow the withdrawals. Many business accounts block ACH debits from companies they don't recognize (often called a debit block or ACH positive pay). Ask your bank to allow ACH debits from StretchDollar and our payment partner, Dwolla. This is the most common reason a monthly withdrawal is rejected.

How to connect your bank

  1. Go to Bank Setup and click Connect Bank.
  2. A secure window from Plaid, our bank-connection partner, opens. Find your bank and log in.
  3. Choose your business checking account and confirm.
  4. Bank Setup now shows your account name, the last 4 digits and Connected.

If your bank isn't listed

  1. In the Plaid window, choose the option to link with your account and routing numbers, and enter them.
  2. Within about 1 business day, a deposit of $0.01 arrives in the account. Its description includes a 3-letter code.
  3. Go back to Bank Setup, click Complete Manual Verification (or Resume Verification) and enter the code.

Step-by-step with pictures: My bank isn't listed. What do I do?

What each status means

  • Connect Bank: no account is connected yet.
  • Pending Automatic Verification: nothing to do. Plaid is confirming the account on its own, which usually takes 1 to 2 business days.
  • Complete Manual Verification: enter the 3-letter code from the $0.01 deposit.
  • Verification Expired or Verification Failed, Try Again!: start again. Click Abandon Verification (or Disconnect), then Connect Bank.
  • Connected: you're all set.

Keeping withdrawals on track

  • Keep enough in the account on the 25th to cover the month's approved reimbursements.
  • If a withdrawal is rejected, your bank connection may be removed.
    • Call your bank and ask them to allow the withdrawals.
    • Reconnect the same account on Bank Setup.
    • Contact us so we can send the payment again. Rejected withdrawals aren't retried automatically.
  • More detail: What happens if a bank transfer fails or bounces?Changing banks: click Disconnect, then Connect Bank with the new account.
    • Do it between the 1st and the 24th so the change is in place before that month's withdrawal.
    • While no bank is connected, your employees can't be reimbursed.
  • More detail: When can I switch my bank account?

Also needed before you can approve reimbursements

Your business also has to be verified on Account Setup, including certifying your beneficial owners. You can do the two in either order, but reimbursements can't be approved until both are finished.

Common questions later on

  • "I see a $100 charge. Is that from Bank Setup?" No. StretchDollar's monthly fee is charged on the 1st to the card or bank on the Billing page. Bank Setup only funds the reimbursements you approve, withdrawn on the 25th.
  • "I connected the wrong account (personal, savings or an HSA)." Click Disconnect, then Connect Bank and choose your business checking account. If money has already come out of the wrong account, contact us.
  • "A withdrawal was rejected. Will it run again?" No, not on its own. Ask your bank to allow the withdrawals, reconnect the account here, and contact us so we can send the payment again.
  • "I added my bank on the Billing page. Isn't that enough?" No. Billing only pays your subscription. Reimbursements need the account connected here too, even if it's the same account.

Still have a question about connecting your bank? Ask it in the help window and we'll help you sort it out.

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