We take our role in providing guidance and education regarding the card payment industry very seriously. At our own expense, we have vigorously defended our right to continue expose unethical and predatory practices in the industry, successfully defeating every attempt to silence us. However, fending off frivolous lawsuits is costly. To sustain these efforts, one of the ways we generate revenue is through affiliate partnerships with ethical providers. This means that some of our outgoing links connect business owners to trustworthy, low-cost payment processors, which is what most of our readers seek. We see this revenue channel as a win-win-win for everyone involved. Business owners find good processors, processors get good clients, and we are able to continue to provide a valuable service to the small business community. We also recommend and link to many services that do not compensate us. Our priority is to guide you to the best solutions for your needs, regardless of potential revenue. If you have questions, please feel free to contact us.
All mentions of rate and fee costs are estimations based on publicly available information and client feedback. Actual costs may vary based on a variety of factors unique to your business.
Dwolla provides payment solutions that focus on ACH and bank transfers for businesses. In this review, we examine the company’s services, pricing, contract terms, and customer feedback. We also look at how transparent their fees are, the quality of their customer support, and the overall satisfaction of their clients. By the end, you will have a clear understanding of what Dwolla offers and whether it is the right fit for your business’s payment processing needs.
Dwolla is a Des Moines, Iowa-based startup that was founded in 2008 on the premise of bypassing credit card interchange fees (a.k.a. swipe fees) and providing a low-cost payment service to businesses and consumers. Dwolla created a proprietary payment network similar to that of VISA and MasterCard, but Dwolla’s network does not charge a fee for each transaction like a traditional merchant account does. Instead, the company eliminated credit card use altogether by linking consumers’ Dwolla accounts with their checking accounts. The service may sound similar to PayPal, and in some ways it was, but Dwolla approached the concept from a very different angle.
Dwolla Connect is a new API solution aimed at mid- to enterprise-level businesses, enabling simplified payment initiation from major U.S. banks like JPMorgan Chase & Co. and Wells Fargo. Expanding on the Dwolla Balance digital wallet product, Dwolla Connect facilitates account-to-account (A2A) payments, is bank-agnostic, and simplifies treasury management. This service caters to industries such as financial services, lending, and insurance.
Dwolla, while not the first to utilize ACH transfers, distinguished itself through a unique marketing and business strategy. Supported by banking and financial institution investors, Dwolla developed a payment network that eliminated common fees associated with card payments. The company also addressed transfer delays and fraud issues typically found in traditional ACH networks, creating a global system for free, instant cash transfers.
One of Dwolla’s key offerings is real-time payments, significantly reducing the time taken for transfers compared to traditional ACH payments, which can take several days.
Dwolla provides white-label solutions, allowing businesses to integrate its payment functionalities under their own brand. This approach helps companies offer seamless payment experiences without redirecting to third-party platforms.
Dwolla offers a bank verification service that speeds up the process of linking bank accounts to the platform, minimizing delays in transaction processing.
The mass payout feature enables businesses to make multiple payments simultaneously, which is particularly useful for managing payroll or distributing funds to various vendors in one batch.
Dwolla emphasizes security, offering features such as multi-factor authentication and tokenization to protect transactions and sensitive data.
Dwolla provides a robust API, allowing developers to customize payment solutions. Comprehensive documentation supports businesses in integrating Dwolla into their existing systems.
Dwolla helps businesses comply with regulations related to electronic payments, offering consultation services to ensure adherence to legal guidelines during transaction processing.
For subscription-based businesses, Dwolla offers recurring billing features that simplify customer subscription management and automate billing cycles.
Recently, Dwolla has focused on its mass payout API for marketplace and business-to-business payments, moving away from customer-facing payment products. As a result, consumers and businesses now encounter Dwolla primarily as an integrated payment processing platform within online services. Despite this shift, Dwolla remains a significant player in the digital payments sector.
There are over 50 negative Dwolla reviews across online forums like Ripoff Report and the comments section of this review. While many complaints seem isolated or stem from misunderstandings regarding Dwolla Instant’s $3.00 monthly fee, recent issues like technical glitches and slow fund transfers also surface. However, these don’t signal a consistent or severe problem with Dwolla’s services.
In March 2016, the Consumer Financial Protection Bureau acted against Dwolla for deceptive data security claims, resulting in a $100,000 fine for misrepresenting encryption standards.
While Dwolla offers forum support to “Start” users, email, phone, Slack channel, and integration support are available to higher-tier clients. These exceed typical support offerings and rival those of the top-rated payment processors. However, live chat is reserved for non-customers, and other options are not publicly advertised.
| PaymentPop | 5 |
|---|---|
| BBB Rating | 1 |
| Average Rating | 3 |
There are no negative reviews published about Dwolla on the PaymentPop website.
We use Dwolla to handle our ACH transfers, and it’s been both efficient and reliable. The platform integrates well with our internal systems, and the documentation made implementation straightforward. It’s helped us cut down on payment delays and manual work.
The BBB shows Dwolla as not “BBB Accredited” and assigns the company an “A+” rating based on 4 complaints filed in the last 36 months. 0 complaints were resolved to the customer’s satisfaction, with all complaints either resolved to the customer’s dissatisfaction or not receiving a final assessment from the customer. Dwolla has a 1 out of 5 star rating based on 3 user reviews on the Better Business Bureau website.
Dwolla has also received 2 negative informal reviews to its BBB profile. The most recent review describes issues with a transaction:
Earnest money for purchase of home through Dwolla client Berkshire Hathaway submitted. Transactions was not consummated. Earnest money refunded in full. Multiple requests for completion of 1099 K. This is not income. Customer service unable to compute that $10,000 submitted, less $10,000 refunded equals zero.
In light of these figures, we have slightly adjusted the BBB’s grade to a “B.”
Before its strategic shift in June 2015, Dwolla’s pricing was notably appealing. Originally, the service charged just 25 cents per transaction for amounts over $10. At the last disclosure of its standard pricing, Dwolla enabled users to conduct transactions within its network without cost. This policy extended to the absence of any PCI Compliance fees or cancellation fees. For advanced needs, Dwolla offered tiered plans, including the Plus Plan starting at $25 monthly, the Premium Plan at $250, and the Custom Plan beginning at $1,500, each adding features like faster transfers, enhanced support, and increased transaction limits.
Currently, Dwolla caters to enterprise-level businesses and payment platforms with four pricing options. The Start Plan is a pay-as-you-go model with no monthly fee, charging 0.5% per transaction (minimum $0.05, maximum $5.00) but lacks payment facilitation tools and offers only forum support. The Scale Plan, priced at $2,000 monthly, includes necessary tools for operating a payments platform and enhanced customer support. The Launch Plan offers a middle ground between these two. Additionally, there’s a Custom Plan that encompasses Dwolla’s full range of features.
While Dwolla’s earlier pricing was highly competitive for a broad audience, its current model focuses more on payment platforms and large-scale businesses. There are some indications from standard clients feeling sidelined by the new business strategy, but within its targeted market, Dwolla maintains positive regard. Thus, the company is given an “A” rating for its alignment with its intended customer base.
The Dwolla Pricing Structure
Dwolla primarily markets itself via its website and uses no deceptive advertising or marketing tactics that are apparent to this reviewer. There are also no negative Dwolla reviews regarding the company’s sales tactics to be found on this or other consumer protection websites, which indicates that there are no issues with hidden fees or rate increases. Dwolla has replaced its flat and free pricing options with a custom rate quote now that it focuses on platform-scale payments, but we have not found complaints about these custom pricing plans.
Given Dwolla’s history of transparency and the lack of sales-related complaints, we have assigned it an “A” rating in this category. If you suspect, however, that the company has misled you about its pricing, you can get a professional analysis with a third-party statement audit.
Compare Dwolla to competitors that earned top marks.
Dwolla was once an established alternative payment processor in the credit card processing industry but has since shifted its focus. The company now provides an API-integrated ACH payment solution tailored for B2B transactions and marketplaces. As a supplement to traditional credit card processing services, Dwolla is particularly useful for business-to-business payments, mass payouts, and rent collections.
For enterprise-level businesses, it’s advisable to compare Dwolla’s payment options with those offered by the top enterprise-level merchant account providers. This comparison will ensure that businesses find a solution that aligns with their transaction needs while maximizing efficiency and cost-effectiveness in their financial operations.
| CEO | Dave Glaser |
|---|---|
| Headquarters | 909 Locust St #201, Des Moines, Iowa 50309 |
| Customer Service | 1-888-289-8744 |
| Website | dwolla.com |
