Detect if bank account business or individual


We already integrated with DwollaAPI and it works well for our base use cases. But now we have to develop new one and need your advice in specific moment.

So we have verified CustomerA (personal or business). This customer know name, email, accounting/routing numbers and bankAccountType for bank account of CustomerB (receive-only). And we want allow CustomerA make transfer to CustomerB (to mentioned before account_number). Seems we can do it with no issues as bank-to-bank (or balance-to-bank) transfer from verified customer to receive-only customer. We are going to create funding source for CustomerB just by “POST …/funding-source”.

But we have requirement - we don’t want to do this, if receiver’s bank account is “individual/personal” account, i.e. not a business bank account.

Question: is there way, using Dwolla features, determine if funding source created by “POST …/funding-source” is “individual” or “business” account?
I understand that we can/should ask CustomerA which type of this receiver account, but we looking for some “confirmation/re-check” solution.

We also use Plaid in our application. Do you know if we can find some solution for this in Plaid features?

Thank you.

Hi @AntonVovchenko, thanks for the question. I’m afraid there isn’t a way to determine if a funding-source is a business or an individual/personal bank account via Dwolla.

There may be ways to determine that via Plaid using their Same-day Micro-deposits authentication path, which requires just the Account // Routing numbers, instead of their online banking credentials, to authenticate a bank account.

If there isn’t a way via Plaid, then the only option would be to ask the User before attaching the bank account.

Hope this helps – please let us know if you have any further questions!

1 Like