Connecting a Bank Account and Making the First (Binder) Payment

For agents: Two separate things happen around the same point in employee onboarding. Keep them straight when coaching a client.

1) Connecting a bank account in StretchDollar

Bank Setup is required on both sides of a reimbursement:

• Employer Admin: connects the company bank account that funds reimbursements (Company Portal → Bank Setup).
• Employee: connects the personal bank account that receives reimbursements (Benefits Portal → Bank Setup).

Typical steps: open Bank Setup → Connect Bank → complete Plaid prompts. If their bank isn’t listed, point them to the StretchDollar Help Center article My Bank Isn't Listed. What Do I Do? rather than leaving them stuck.

Until banks are connected (and employer Account Setup/verification is complete), reimbursements can’t successfully deposit.

2) The first (binder) payment to the carrier

Before coverage starts, the employee usually must make their first premium / binder payment directly to the insurance carrier — by phone, carrier portal, or mail depending on the insurer.

StretchDollar does not pay the carrier and does not “front” the binder. StretchDollar only reimburses eligible premium amounts from the employer bank to the employee bank after a reimbursement request is submitted and approved (one-time and/or auto-reimbursement).

Coach employees to pay the binder on time so coverage actually activates, then submit proof/premium documentation in StretchDollar for reimbursement. For step-by-step employee guidance on using benefit dollars to help with that first payment, see How employees access their benefit dollars to help with their initial (binder) payment.