Sending and receiving payments through ACH eliminates manual steps from the investment process, making it even more efficient. When you set up ACH, understand that:
The maximum amount for ACH direct deposits is $250,000.00
ACH currently supports U.S. Bank Accounts only
U.S. law and KYC/AML compliance requires verification of all users who are funding through electronic transactions - that includes you and your investors - which can take up to three business days
ACH transactions generally take 3-5 business days to complete
In Groundbreaker, each offering is associated with an investment entity which is where payments are managed. To set up ACH for any fund transfers associated with a deal, connect a bank account to the Investment Entity created for the offering. Follow this same process for each investment entity that you want to set up for ACH, even when they share the same bank account.
=> Select Menu from the Home Dashboard
=> Then select Investment Entities
=> Click on the Investment Entity to enable
From the Investment Entity Overview page, click on More Actions and select Entity Bank Account.
You must first complete the Customer Identification Program (CIP) Verification.
Groundbreaker is required to collect the requested information to verify you and responsible parties for underwriting under federal banking regulations. Please ensure all information entered is accurate and matches your legal documentation.
The information required will vary according to the Entity Business Structure that you have selected.
P.O. Boxes cannot be used as the address for your Investment Entity.
If your Entity Business Structure is an LLC and you can't find your SS4 document for the Entity's verification, you can request a replacement copy by calling the IRS Business and Specialty Tax Line. The phone number is (800) 829-4933, and the line is open from 7 a.m. to 7 p.m., taxpayer local time, Monday through Friday. The tax specialist will ask you to provide your EIN and some identifying information about your business.
After submitting this verification, our banking partner (Dwolla) will review the information and keep you updated via email.
After a successful verification, you are able to continue. From the Investment Entity Overview page, click on More actions and select Entity Bank Account as you did before.
Connect the Bank Account
You now have the option to connect your new bank account.
After you select your bank, you will be prompted to choose a verification method.
The faster option is to use Instant Account Verification, but some banks may require Micro-Deposit Verification.
Instant Account Verification
When you configure your ACH bank account via instant verification, you will provide the credentials you use on your bank’s website (Personal ID and Password).
Depending upon your bank, you may be required to verify the account information via micro-deposits. Micro-deposits are two small test deposits sent from your bank account to verify that we have the correct bank account information. You will need to provide:
Bank routing number
Bank account number
Micro deposits usually take 1-2 business days (you can see them in your bank account's transaction history). Enter these amounts on the same page used to identify the bank details to complete the ACH setup.
Micro Deposit Errors
You will have three attempts to input micro-deposit amounts correctly. Once you exceed the maximum attempts, a micro-deposit error message is triggered, and the ACH setup will fail. Reach out to email@example.com or use the live chat in-app (located in the bottom right corner) if you need any assistance with the Micro Deposits verification.
You can retry the verification by taking the following steps:
Remove the bank details
Wait 48 hours after removing the bank details to re-add them
Initiate new micro-deposits
Verify using the newly posted micro-deposit amounts
After successful verification, the entity bank information is updated.
Setting up ACH for your Investment Entity automatically enables ACH as a method for making distribution payments. In order to use ACH to receive contribution payments, however, you first need to enable ACH under Settings. Refer to this article for instructions.
If you have more questions or feedback, please use the live chat in-app (located in the bottom right corner) or contact firstname.lastname@example.org.