Dwolla (dwolla.com) is a Des Moines, Iowa-based startup that is on a mission to radically change the electronic payments industry. The company was founded in 2008 on the premise of bypassing credit card Interchange fees (aka: swipe fees) and providing a low-cost payment service to businesses and consumers. Dwolla has created a proprietary payment network similar to that of VISA and MasterCard, and Dwolla’s network does not charge a fee for the transaction like a traditional merchant account does (costs will be covered below). Instead, the company eliminates 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 is, but Dwolla is approaching the concept from a very different angle.

Although Dwolla’s payment concept is not exactly a new one, its marketing and business strategy is completely unique. With help from a few banking and financial institution investors, Dwolla has created a payment network that eliminates all of the common fees that merchants incur from accepting card payments. Additionally, the company’s network eliminates the common transfer delays and fraud that plagues similar networks such as the ACH network that most banks utilize. Essentially, Dwolla is a global system for free, instant cash transfers.

In the past two years, Dwolla has shifted its marketing to emphasize its tools for developers who need a mass payout API for marketplace-style and business-to-business payments. As a result, most consumers and merchants now encounter Dwolla as the default payment processing platform integrated into an online product or service. Merchants who sign up with Dwolla can accept payments the same way individuals can pay each other, or they can use features that are better suited for their needs. These include website integration and plug-ins for shopping carts as well as tools that can be used to accept payments at the merchant’s location. The company has made major headway in the payments market and has reported that it is processing $30 to $50 million in transactions every month. Ben Milne is listed as the CEO of Dwolla.

Key Points

  • Sales & Marketing: Dwolla does not appear to hire independent sales representatives and has received no merchant complaints about its sales practices.
  • Costs & Contract: Dwolla offers custom pricing for all accounts but has historically allowed users to transfer payments on its network for free.
  • Complaints & Service: Dwolla has received more than 40 public complaints.
  • BBB Rating: Dwolla has a “B+” rating with the Better Business Bureau and has received nine complaints in the last three years.
  • Rates & Fees: How Merchants Got The Best Rates With Dwolla

Dwolla Products and Services

  • Bank transfers
  • Recurring payments
  • API integration
  • Mass payment via CSV upload
  • White label option
  • Custom fees


  • Retail
  • E-commerce
  • Marketplace platform
  • B2B
  • Personal

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Sales & Marketing

Key Points - Sales & Marketing

Employs Independent Resellers No
Advertises Deceptive Rates No
Discloses All Important Terms No

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 complaints regarding the company’s sales tactics to be found on this or other consumer protection websites, indicating 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 pricing-related complaints, we have assigned it an “A” rating in this category.

Response from Dwolla

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Dwolla Marketing Example


Costs & Contract

Key Points - Costs & Contract

All Transactions Custom
Early Termination Fee None
PCI Compliance Fee None
Equipment Lease Terms None

Prior to its shift in focus, Dwolla probably had the most attractive pricing of any electronic payment service on the market. Prior to June 2015, Dwolla charged only 25 cents per transaction for any amount over $10. The last time its standard pricing was visible, the company allowed users to send and receive money using its network for free. There were no additional fees whatsoever (including no PCI Compliance fees) and no service agreement or cancellation fees. For merchants who required additional features, Dwolla offered plans that charged a flat monthly fee with no transaction fees. The company’s Plus plan started at $25 per month, its Premium plan started at $250 per month, and its Custom plan started at $1,500 per month. Each plan added new features like next day transfers, priority support, higher transaction limits, and white label options.

Today, Dwolla’s website does not disclose any specific pricing details, and it encourages interested parties to get in touch for custom pricing. This could mean that the company’s platform is no longer free to use, but it more likely means that its new focus on e-commerce platforms, B2B payments, and mobile app integrations requires it to clearly assess a new business’s needs before providing a quote. If you have received a specific quote from Dwolla, please share it in the comment section below this review.

Overall, the company’s previously advertised pricing was extremely competitive, but its custom pricing may include new costs that change its value. There are currently no merchant complaints about Dwolla’s pricing, so we will assign the company an “A” in this category.

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Complaints & Service

Key Points - Complaints & Service

Total Online Complaints 40+
Live Customer Support No
Most Common Complaint Slow Transfers

Dwolla has more than 40 complaints filed in the usual online forums, including Ripoff Report and the comment section of this review; however, a good number of these complaints appear to describe isolated incidents and simple merchant misunderstandings surrounding the $3.00 monthly fee for Dwolla Instant (an older service that offers up to $500 in instantly transferrable cash). Other, more recent complaints describe technical issues, slow fund transfers, or inadequate support, but they do not indicate a consistent or severe problem with Dwolla’s service. The company provides email support and help articles published on its website, but does not appear to provide live phone support. Overall, there are some valid concerns about the timeliness and accessibility of Dwolla’s support, but the low complaint total that the company has received over its entire existence is a positive factor.

Response from Dwolla

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Key Points - BBB

Product & Service Complaints 7
Billing & Collection Complaints 0
Advertising & Sales Complaints 1
Guarantee & Warranty Complaints 1
Delivery Complaints 0

Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.

As of this review, the Better Business Bureau is showing Dwolla as not “BBB Accredited” and is assigning the company a “B+” rating based on nine complaints filed in the last 36 months. Of the complaints, seven are due to problems with service, one is related to a guarantee or warranty dispute, and one has to do with an advertising or sales issue. One complaint was resolved to the customer’s satisfaction, while the remaining eight either were resolved to the customer’s dissatisfaction or did not receive a final assessment from the customer. In light of these figures, we have slightly adjusted the BBB’s grade to an “A.”

Response from Dwolla

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Dwolla Logo

Dwolla Bottom Line

Dwolla is an established alternative payment processor in the credit card processing industry. The company offers an API-integrated ACH payment alternative for merchants. Dwolla is best used as a supplement to a traditional credit card processing service. The service is especially useful for business-to-business payments, mass payouts, and rent payments.

Hi, I’m Phillip Parker and I believe that the merchant account industry has been overrun by people who engage in fraud and deception in order to steal from hard working business owners. I created this website to help you avoid the bad players, save money on fees, and get peace of mind with your merchant account. If you would like to help support my work, check out my cost analysis service. I can evaluate your statement and tell you exactly how much you're overpaying for your merchant account. Get more information here.

Schedule a Consultation with Phillip

32 Reviews Leave Your Review Below

  1. Dwolla has removed all their pricing tiers to focus more on enterprise-level. The only pricing they have available is $2000 per month which is ridiculous for startups. Unfortunate what this service has become.

    1. With zero notice, and in the middle of our busy season, they apparently stopped supporting our platform. So our customers can no longer use Dwolla. We only found this out when someone tried. Their A rating should be removed ASAP.

  2. Dwolla charged 3 NSF fees to my bank even after my rent payment was posted successfully. If you call customer service no one is there to answer and the customer service voice box is always full. Do not use this service / payment method unless you want to get ripped off !

  3. Absolutely horrible experience.
    Singed up thru godaddy bookkeeping. I had business accounting thru them.

    Couldn’t receive payments and the customer would get nothing but “an error occurred.”

    Finally got to talk to them, they said i had to upgrade my account.

    Many tries later, cancelled my account.

    A horrible experience. Feels like a 14 year old in a basement decided to make a website with the cool new framework.

    Steer clear.

  4. I’m beyond unhappy with Dwolla, I have been waiting for payment since the first when all my bills are due. It says online that my money is available but I can’t withdraw it because my bank account isn’t verified. Well I have deposits In my bank account from Dwolla in my bank account, but when I emailed them saying I cannot verify my bank account they said my information is wrong, but I looked and it’s accurate. I have been waiting way too long for this money without a sufficient answer from Dwolla. So my review is to never use this service on account of how shitty they’re process is! I’m beyond unhappy and a few of my bills are now late because of them. I already have your “verified numbers” in my account, give me my money!!!!

    1. I agree. It is absolutely junk. We have an established business with perfect relations with our merchant accounts and we have two merchant accounts and both are spotless. We are a multi million dollar company. We tried to diversity and offer what they promise on dwolla a cheap fees. So we went thru tons of personal and financial documents we submitted to Dwolla and they approved our account and our bank and verified us and so forth. Then we hired a programmer and did the API integration which sosted us a lot and time. Dwolla tested it and confirmed it is good and we went live. Luckily we convinced only one recurrent customer to use Dwolla. Dwolla promise immediate fund, easy signup, customer will have no hastle and so forth. That was a lie. Our customer is a well established business with excellent merchant account and is a large business. The customer went thru headache of faxing documents to Dwolla over two weeks. Finally the customer was approved and over 10 days made 7 transactions. Dwolla emailed us complete and transaction authorizations and we shipped the products. We never got the fund. We called Dwolla and they confirmed seeing the transactions but an issue with the API. Dwolla tested the API and all was good. Dwolla asked that we tell the customer to send payments using our email until they look into the API. The customer did use our email and sent from their Dwolla account directly payments. Finally we saw the payments under our Dwolla account but states takes 3 to 4 days to process the fund. Then we emailed Dwolla about our API what is going on. Dwolla emailed they need our Bank statement and faxed more documents. Strange and we did it again right away and even sent them the bank statement with the Dwolla verification deposits. Finally Dwolla emailed us stating the transactions cancelled. We phoned them and spoke with the so-called supervisor and asked what is this issue. The supervisor said since we have other merchant account, we did not lose anything just get paid by the other merchants. They are junk. They costed us time, money in programming cost, stole all our financial data and our one customer data and who knows what they do with them. We are closing our bank accounts because of this Dwolla shady problem. Luckily, our one customer is a recurrent customer and we are able to get the money from them. But if we went live and had so many customers that used them and we got their authorization and shipped the products, our losses would have been huge. The worst company we even dealt with. Our customer also agreed as had over two weeks of faxing documents and headache never encountered before.

  5. Warning: Do not sign up for Dwolla. They want me to send all my personal information like bank statements, driver’s license number, etc. Sounds like a scam! Customer service is rude and not helpful.

    1. Yes!!! I WOULD.NEVER RECOMMEND DWOLLA TO ANYONE FOR ANYTHING! I just had this same issue… set up an account. Did a couple Dwolla to Bank transfers… Then they withhold my transfer, later asked me to verify my bank account by sending bank statements, after asking for a copy of state ID day before… and then later why I get money from the sender. I comply then they close my account!!! Customer service was very unhelpful. Said our securities department has to process and approve… got several conflicting emails talked to several customer service people etc… experience was awful and they have delayed payment and my personal information that I provided is not retrievable and probably not protected. This is fraud.

  6. I would NOT recommend this service. I opened an account and immediately had a stranger access my account information by transferring money and emailing me. There is no way to contact the company other than by email. It took weeks just to receive an email that their security team will ‘No longer be able to service my account’. NO response as to what this means so far. Also, no customers want to go through the personal bank account information required to setup an account since this is such a new service.

  7. Let me tell you about this company. I wouldnt DO any business with this company. I had submitted my paperwork for my VAPE business 3 months ago. NEVER got an email, nothing. I go to login and its asking for more paperwortk. Submitted it. Then they asked me to SUBMIT my drivers license, which was BS as it has nothing to do with my business. I could have been an employee working on behalf of the company.

    Anyways, lets get on with it. They told me they needed the paperwork and didnt say anything about my website. Nothing; well they told me after i uploaded PERSONAL information, IRS paperwork, they said we are going to look over account. The said they didnt want to approve me because I sold CBD products. WHAT? Ok then, what about Hemp iced tea? Do you block that? Or hemp backpacks? Hemp clothing or cotton? So I took it down and emailed them to tell them I removed it. I get an email saying my account status has changed. To my confusion and despair I logged in and im suspended??? I email them and they said basically we do not want to do business with you.

    1. Reading all of these reviews is very disconcerting.. I myself am in the Vape industry, waiting for a massive payment to come through, & all im getting is bull$h!t; every corner… You must upload ‘this’ for proof. NOW give us IRS paprwrk w/your EIN#. Wait, we don’t think that’s enough, we need your Drivrs licnce/Passport. Now the deed to ur house… It’s utter nonsense and frankly, it’s become a joke.. Our company has now been put in dire financial straits. We have spent a huge amount of $ on fulfilling a order; understanding payment of a even huger amount of $ was coming in, quickly & easily. Now i’ve spent 2 WEEKS, day2day, dealing with Dwolla’s merry go round from hell. All to obtain $ my coworkers & i worked tirelessly to get.. it’s become a frakken nightmare.

  8. We’re forced to use Dwolla to pay for bus tickets on Suburban Express, which my daughter takes to and from college for weekend trips. It’s the only form of payment they’ll accept.

    My experience is that the funds transfer is extremely slow – the one I initiated today, 11/10 is estimated to complete on 11/17. Really? Seems like a pretty poor excuse for a payment processor if it takes them a week to get money out of my bank and into the Dwolla account. If I was a merchant and had to wait that long, I wouldn’t use them at all.

  9. So why do they have 5 stars here with all of these negative reviews? Did they pay off this site?

    Dwolla seems to be pretty much useless. You are better off just having your clients send you paper checks and dealing with sales that way or even getting an account like american express bluebird which is the same thing as Dwolla but faster. Someone can email you a photo of a check and you can deposit that right to your bluebird account and have the funds within 2 days. Dwolla purposely holds your funds for 5 days. even if they get your money from the sending bank the next day. They state this is to make sure they dont get any rejection codes after the transfer. Which isnt possible.

    Dwolla will though all you to do everything in realtime (and not purposely make you wait for no reason) if you want to pay them $250 a month!! this makes them more expensive that ANY payment solution out there. I just seen they have a company who provides a debt card to pull from your dwolla balance immediately. I may decide to try that card and see how long it actually takes to be able to spend funds and post again. But for right now they do not sound like a good company. They claim they wont process credit cards because of the 1-3% transaction fees which are nothing. This is because if you use a debt or cc card the money is transferred instantly and they do not get to hold onto it and make more from their bank accounts balance.

    The only good thing is they accept high risk transactions. But just like Paypal this is because they are new. As soon as they make enough im betting they ban them as Paypal did. Just using them to get going and then turning their backs.. Watch!

    1. not being able to delete reviews isnt cool as some will leave a review before they are able to find the support phone for Dwolla which you can only find on Google it seems. I contacted them again and spoke to someone and i guess if i do get the card or send to my bank, even without paying for faster service it should be next day funding after it has reached the Dwolla balance. If that is true then it will take 5 days total to clear a payment.

      I will actually continue to use Dwolla WITH another merchant account as well. Using Dwolla as the “pay by bank or check” option
      They don’t charge a monthly or gateway fee which actually does make them cheaper. i shouldnt have posted until i found out more,
      but again they do make reaching a live person a bit hard to do from their website so ill share the blame with them :)

      1. OK im back, Dwolla today (5 days later) finally told me the payment to me didnt go through and could not tell me if it was NSF or what reason. They said they CANT tell me. SO DO NOT USE DWOLLA FOR ANY PROCESSING NEEDS! ITS NOT A REAL FUNDING SOURCE OR WAY OF DOING BUSINESS!!

        Now if i wanted to, i could have the client remit payment again and wait 5 more days? For what reason? Sorry this company is horrible and shouldnt be trusted. Paypal tells me the reasons. This means this companies bank account isnt as secure. DONT TRUST THEM!

        Due to the reasons above im now glad the review wasnt removed, they played me, and theyll play you too!

  10. I was asked to use Dwolla to send money in a transaction. I was fortunate to have a good agent because I would have lost the bid due to issues with Dwolla. It took 3 days and as many tries for them to resolve clerical errors that prevented me from funding my account. Then the transaction to fund would be another 3 days. And then ANOTHER 3 days to send funds! I eventually convinced the seller to use a different service and the transaction went off without a hitch. At Dwolla’s speeds, you might as well meet in a coffee shop, wearing a red rose, and hand over an envelope of cash! Better yet, get a money order and snail mail it. It will probably get there sooner!

  11. The problem started when i started to fund my account. After wasting my time with requesting driver license, bank statements and lots of time waiting security team suspended my account.

    I have not done any transactions with the account yet.

    The reason stated is that I tried to fund my account with large fund. I made their job easier and i cancel the transfer of fund since they could not come up with a legally acceptable way for their behavior.

    My impression is : it is kids operation, they are not ready for doing real business unless for kids.

    clumsy,small minded,useless and unreliable.

  12. Dwolla has refused to give my money that was placed in there care by online poker winnings.
    They received 3 winnings from the poker site that I play at. The first 2 disappeared and the 3rd they blatantly refused to send to me. At my request they sent the money back to the poker site ( that claims to be their partner )
    for me to get it from them. They marked the returned money forfeited so that I cannot get my winnings now.


    They have lied to me and stolen money from my account.

    DO NOT USE THIS COMPANY!!!!!!!!!!!!!!!!!!!

  13. Been trying to open an account 4a week.finally did I think. Troubles with password and pin would not accept finally did.was told to verify e- mail I did was told they were sending verification and to click on link been waiting 4over 6 hours.never received.had cash winnings on lucktastic scratch game it was not much.but will not pay me my winnings.bunch of f-ing scam artists.

  14. Why is Dwolla asking for SS# to collect my online poker winnings? I believe people give out SS# when they won $600.


    Here’s my nightmare story and their refusal to help:

    I made a purchase online and the seller asked to use Dwolla. At first it looked like a reputable website but I’ve come to find out there’s no support behind it. Long story short, the seller has run away with $2000 of my money, and he’s used Dwolla to scam thousands from others as well. After their “investigation”, they concluded that they can’t get in contact with the seller so they can’t do anything about the claim. Meanwhile I have email correspondence from multiple people scammed by this crook. HOW CAN YOU CALL YOURSELF A REPUTABLE SERVICE? YOU ARE HELPING SCAM ARTISTS…..

    1. Hi Payam,

      Can you elaborate on the transaction you made? What did you purchase and how did you communicate with the seller?

  16. I also disagree about the $3 fee complaint, It clearly says their is a a $3 recurring fee and that your credit will be checked that’s why I did not activate it yet.

  17. So far Very Slow to get money. I received a transfer to my Dwolla account on 4/19 and Dwolla said the funds would clear by 4/25. Well im still waiting for the funds. I called and the customer service rep said they needed information from the person that was sending me the money. This person is a friend whom never received a call or email stating they needed additional verification from Dwolla. I asked my friend to call which he did and Dwolla wanted him to fax his drivers license to them? Kinda odd but he did. Now they are saying it will take an additonal 4 days to clear and be in my Dwolla account. They indicated that I will have to just wait. There is not escalation or expedite that can be done. Then it will take another 4 days to transfer to my bank. WOW… This is going to be an over 2 week transaction… Still have flaws IMO.

    1. Paypal does this same thing now. When person to person is sending money the one sending has to verify they sent it before they will release funds, but my experience with paypal is that once it’s verified they release it quickly. I have had bad experiences with a lot of these so called merchants/processors it’s a nightmare dealing with them. They are bullies and do what they please.

  18. I’m thinking there is a security flaw in Dwolla. I have no account with Dwolla, and yet a party named Myron Peppers managed to get Dwolla to link my checking account to Myron and they hacked my account for $650.00. Thankfully, I spotted this activity before the funds transferred through Dwolla, and Dwolla stopped the transaction from going through. My bank also took action to stop the transaction.

    If the service they provide is supposed to be for subscribers to their service only, and I am not a subscriber, how could Myron Peppers do his thing? I’m a bit disturbed with this incident.


  19. AVOID INSTANT TRANSFER SERVICE (HIDDEN FEES): I’ve been a DWOLLA customer for about a year, regularly making deposits of a substantial amount of money each time. The delay in deposit from my linked bank account got annoying and one day I noticed a message after making a deposit, encouraging me to enable DWOLLA INSTANT feature for instant bank transfers. Unfortunately, this is not exactly true. They actually open a line of credit for you starting at a low $100 limit. Also, they fail to ever mention a $3.00 recurring monthly fee associated with this feature (they hide any mention of this fee deep in the terms of service – never once explicitly informing the user of any fees). Once you enable DWOLLA INSTANT then you can’t disable it again without paying the fee. I contacted their customer support literally 5 minutes after I enabled the feature to basically be told “deal with it and pay the fee.” I’m sorry but I expect more from a financial institution who I regularly have done business with over the past year. If they’re so deadset on getting my $3.00 with deceitful tactics which are NOT STANDARD in their industry (usually businesses are upfront about any fees, especially recurring) then they can have it but they will not keep my business. My advice is find a financial instution who actually has a personable customer service abd appreciates customer loyalty. I feel like I’ve been scammed and can’t help wonder how many other customers they’ve pulled this over on to get $3.00? A few hundred thousand?

    1. I feel the above negative comment regarding Dwolla’s Instant funding service is disingenuous, or perhaps simply poorly informed.

      Dwolla discloses the reocurring $3 fee for Instant very plainly on http://blog.dwolla.com/its-instant/ – that’s just one click and a screen’s worth of reading off their main page.

    2. The monthly fee is listed on their fee page, which can be clicked at the bottom of the page. Seems transparent. Could be a bargain, or not, depending on how you use the service. Similar level of service from other financial institutions may appear to be free, but aren’t, as they do cover their costs (and protect profits) making funds promptly available for clients in other ways than charging up front.

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