Failed Transfer Penalty

I want to know that for which ACH Return Codes do we get penalized if funds transfer fail. Also do we get penalized if micro-deposits credit fails ?

Hi @IshanM , Assuming you’re inquiring specifically for the Pay as You Go pricing tier? This information should be included on this page which references how much ACH returns cost. Micro-deposits are included as part of normal ACH returns.

Yes we are using Pay As You Go pricing tier. I have some questions:

1.Suppose I transfer $100 from Dwolla Master Account Balance to verified funding source of a
receive- only customer, then I will get charged 0.5% of $100 which is equal to 50 cents, right ? And if
the transfer fails due to ACH return, then I will get charged 50 cents + $5, right ?
2. The Pay-As-You-Go pricing plan charges 0.5% per transaction (min. $0.05, max. $5). I didn’t get the exact meaning of this statement. How are the minimum and maximum amounts $0.05 and $5 respectively ?

Yes, that is correct.

The minimum amount is 5 cents. Therefore if you send a $5 transaction amount, we’re not going to charge half a percent (2.5 cents), we’ll charge 5 cents. The maximum is $5, which means any transaction exceeding $1000 will still only be charged the $5 max fee.

Ok. I got it. Thanks. I had one query: It is mentioned that for micro-deposits failure also we will be charged a fee of $5. This will be an issue for us because if the users keep on adding funding sources for whom micro-deposits fail, then we will be penalized a lot. Is there anything that can be done ? We have implemented micro-deposits verification method only.

This is more of a business and user experience decision, but you could look at utilizing the Instant Account Verification option for verifying bank accounts. Another option would be to have the user enter in their account number twice within your UI. This limits errors that can occur with mis-keying their account number when adding their bank.