Direction on using Dwolla for payout on rental website

Hi, I want to use Dwolla to do ACH payout for a rental website that I am helping to build. The website is a platform for customers to come and choose the car they want to rent, and their payment will be accepted through Stripe/PayPal and will first go through my platform then payout to the car vendor/seller. And I am having a hard time finding out how I can use Dwolla to work with Stripe/PayPal to help do the payout,
it is difficult for me to figure out how because most of the demos I see on your website is a peer to peer fund transfer where one person register an account and then payout/fund transfer to another registered account.
Is there a way where the vendor/seller does not have to register a Dwolla account and just use their bank account information to receive the payout? (I do not want to assume or force my vendor/seller to register an account, is it possible?) If so, can someone point me to the documentation where it talks about that?
If it is not possible, then what is the common/traditional approach to this problem? Do we just tell the vendor/seller that they must register in order to receive the payout?
Thank you!

Hi Smith,

Thanks for the detailed outline of your use-case!

In order to transact using Dwolla, there must be a Dwolla Customer account created for the user. However, the user doesn’t have to sign in to Dwolla to create an account. Dwolla API’s white labeled nature allows you to create a Dwolla account for you users without them having to interact with Dwolla.

Since your use case only involves sending payouts using Dwolla, it is more easy to onboard the users to Dwolla. You can create these users, that will be receiving payouts, as Receive-only users (lightweight account that only requires name and email and no acceptance of Dwolla’s TOS and PP).

Here’s a step-by-step guide on how you can utilize Dwolla’s API to create payouts from your Master Dwolla account to Receive-only users - Send Money to Your Users | Dwolla API Documentation.

Check it out and let us know if you have any questions!

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Hi Shreya,

Thanks for the reply, I am now convinced that Dwolla is the way to go and my friend already started enrolling an account to use your wonderful service.
One thing that I am still confused about is that how do I know when I need to payout my sellers/vendors via Dwolla?
Do I use webhooks to trigger the payout API? If so, should I use Stripe/PayPal’s or yours?
(I am new to eCommerce and I am not familiar with how the workflow and the payment/payout API works, any tip would be appreciated!)

Hi Smith,

This part actually totally depends on how you would like to design your workflow. I can provide ideas though!

You could wait for the webhook from Stripe/Paypal denoting that the payment has completed to your bank account. Then using the Dwolla API, you can initiate the transfer from your that bank (which has to be attached as a funding-source to your Dwolla Master account) to the vendor/seller’s attached bank account in their Dwolla Receive-only customer account.

Hope that helps!

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