Dwolla Plaid Integration using Plaid's micro-deposit (automatic or same-day microdeposit)

Hi,

I’m working on Plaid+Dwolla integration and I just have a few questions regarding how Plaid’s micro-deposit verification works with Dwolla’s funding source API.

Plaid Link can instantly verify bank accounts from most financial institutions. And for those financial institutions that don’t support instant verification, Plaid Link can switch to either automatic micro-deposit verification or same-day micro-deposit verification.

So, if an account is added using Plaid Link micro-deposit verification, the account status (Plaid) will be one of the following:

  • pending-manual-verification
  • pending-automatic-verification
    So, if a processor token is created for an account that was still pending verification,
  1. how would Dwolla API display the funding source status?
  2. is it going to be “unverified”?
  3. And after the Plaid account becomes verified (automatical-verified or manually-verified), is the status going to change automatically in Dwolla API as well?

Also, when user credential changes and Plaid access token needs to be refreshed, would there be any impact or notification that I can check from Dwolla’s funding source API return? or it has to go through Plaid’s API?

thank you in advance,

Meng

@meng, as of the time of writing, Dwolla does not support 1:1 Plaid micro-deposit integration. Instead, Dwolla has its own micro-deposit process in place (see initiate micro-deposits and verify micro-deposits).

As a general overview, the way that Dwolla implements Plaid Auth is by taking the processor token and exchanging it for the account and routing number at the time the API request is made. Because of this, Dwolla is unable to “follow” the progress of a Plaid account from unverified to verified.

To summarize, if you are looking to implement micro-deposits, we recommend using our solution (documentation links attached above), or if you’re looking to implement micro-deposits using Plaid, you would need to build out a process that works directly with Plaid’s API to initiate and verify micro-deposits. Once the account has been verified via Plaid, then you would be able to exchange and send over the processor token when creating a funding source in Dwolla.

Please let us know if you have any further questions!

Thank you @james.
So, aside from adding a new funding source. During account usage, according to Plaid’s documentation

Over time, an Item may need to refresh its authentication information. This can happen if the end user changes a password, if multi-factor authentication (MFA) requirements change, or if the login becomes locked. An Item can also require its authentication to be refreshed if it was only authorized for a limited amount of time and the authorization has expired or is nearing expiration, which can happen to Items from institutions that use OAuth flows in Plaid Link.

Does this affect the existing funding source status returned in Dwolla’s API? Or since Dwolla is only retrieving routing & account number, which is unchanged, existing funding sources won’t be impacted.

thanks again,

Meng

@meng, if you create a funding source and the Plaid token changes or is invalidated, then the funding source will remain the same, since all Dwolla is doing is grabbing the account and routing number from Plaid when the funding source is created.

If you are holding on to the Plaid token to, for example, wait for micro deposits to complete on Plaid’s end before creating a Dwolla funding source, then it is possible that you may need to be regenerate the token with Plaid first before sending it over to Dwolla, if the old/stored token is no longer valid with Plaid.

Thanks for the clarification :+1:

Hi @james , just one more question on this:
is it possible to add a funding source using a plaid processor token and have the account status set to ‘unverified’? or funding source added using a plaid processor token will always be ‘verified’?

thank you,

Meng

The latter is correct: If you add a funding source via Dwolla’s integration with Plaid (by sending Dwolla a processor_token), it will always come back as verified, since the account and routing number are fetched directly from Plaid’s API.