How are transfer fee and customer fee charged

Hi, I have some questions about how are the transfer fee and customer fee (adding verified and unverified customers) going to be charged.

So, for example, the pay-as-you-go 0.5% transfer fee capped at $5 per transfer. How is this fee going to be charged? Is it going to be charged towards my Dwolla master account per transfer or periodically? or it will be taken as a fraction of the transfer?.

Also, if I want to pass the cost to one party of the transfer, how should I do that. Do I just add a facilitator fee charge-to that customer as part of the transfer?

Finally, how and when is the customer fee ($2) going to be charged? And how can this also be passed to one party of the transfer

Thank you in advance,

Meng

If your application supports pay-outs or pay-ins to/from end-users/Customers, then the Dwolla fee will be charged at the time of the transaction. (similar to the Facilitator Fee feature) If your application facilitates transactions between two end-users/Customer Records, the fees will be collected/invoiced at the end of the month.

Yep, the facilitator fee is a great option! (link shared above)

This will be collected/invoiced following the end of the month. You could utilize the facilitator fee feature, or charge a one-time onboarding fee (subscription fee) to the end-user for utilizing your application for initiating/receiving funds transfers.

Thank you @spencer

So, to clarify that my understanding is correct, the following are few scenarios for passing the transfer fee using facilitator fee:

scenario 1: Customer A's balance --$1000--> Customer B's balance
  • $5 facilitator fee incurs once transfer is completed
  • $5 collected/invoiced at the end of the month
  • scenario 2: Customer A's bank account --$1000--> Customer B's bank account
  • $5 facilitator fee incurs once transfer is completed
  • $5 collected/invoiced at the time of transfer
  • Question: What’s the exact timing for the transfer fee in scenario 2? Do I need to worry about Dwolla master account balance ever becoming negative due to the difference in the transactions’ posted time?

    Question: Where will the facilitator fee be sent to? Dwolla master account’s balance or funding source(bank account)?

    scenario 3: For onboarding a verified personal customer
  • I need to initiate a $2 charge with $0.01 facilitator fee
  • thank you again for the answers and clarification :slight_smile:

    Meng