Dwolla’s API to Enable Same Day ACH Transfers

By LTP

In the United States, the ability to transfer funds from one bank account to another within the same business day has been a pipedream since the 1970s. The ability to not only do that but do it affordably and through an API endpoint starts today with Dwolla’s Same Day ACH pilot program.

Announcing Dwolla’s Same Day ACH Pilot Program

The pilot program will offer platforms advanced access to Same Day ACH, allowing members to initiate credit transfers via Dwolla’s White Label API and providing faster funds availability to their users.

The benefits of Same Day ACH Payouts with Dwolla White Label:

• Fast: Send money to your customers’ existing bank accounts within the same business day.
• Seamless: Emphasize your brand and allow your customers to receive funds via their existing bank accounts. There’s no downloading an app or cumbersome registration flows.
• Cost-effective: Same Day ACH transfers are an economical alternative to traditionally expensive cards and wire transactions. It works with you to develop a scalable subscription model that will grow with customers, today and tomorrow.
• Programmable: Embed into existing business operations with automated payment processes and end-user experiences in as little as 4 API endpoints.

Who is eligible for this pilot?

Right now, Same Day ACH only supports credits, or funds initiated from the sender directly to receiver. This is an excellent way for payout platforms, the gig/sharing economies, marketplaces, payroll companies, and more to differentiate themselves, optimize business process, and improve their end-user experiences.

At least initially, the Same Day ACH pilot will be made available to Dwolla White Label API partners only.

When will it be available more broadly?

We’ll continue to run the Pilot Program for a few months, but hope for broader market release during Q4 of this year.

What is Dwolla White Label?

It’s a Software as a Service platform for businesses and applications to communicate and work with our nation’s banking system. Developers and businesses use our simple, yet powerful White Label API to set up funds transfers between bank accounts, manage customers, verify bank account information, and more—all within their own branded experience.

How will it work within the existing White Label API?

For businesses interested in leveraging Same Day ACH, the White Label API integration will continue to be as simple and powerful as it is today. No need for additional, complex coding with your integration.

Do my customers need a special bank, app, or feature to receive a Same Day ACH-enabled bank to receive Same Day ACH payments?

No. All banks and credit unions accounts are required to accept Same Day Transfers as of Friday, September 23, 2016. With White Label, you create and onboard customers within your own native experience and they can add their own bank accounts.

Why only credits? What about debits?

There are three phases to the Same Day ACH rollout. The first phase (i.e., this one) can only process credits. Debits, or the ability to originate a request for funds from another’s account, becomes available in September 2017.

First appeared at LTP