P2P transfers with Plaid integration

I have already implemented the Plaid/Dwolla integration, and Sandbox is working. In production does this use ACH or it can be combined with the Balance to Balance product.

How long does it take to process the transfer between users, if the sender doesn’t have a Dwolla balance? Does it take the clearing time as stated from this document? ACH Processing Times | Dwolla API Documentation

Also, would implementing a Dwolla Balance make things faster? If so, what security implications does it have? Are we holding the money at any given time?

Thanks,

Franco

Hi @francopetra!

The bank funding-sources added via Plaid can only be used to create ACH transfers to/from other bank accounts or the Dwolla Balance. Would you be able to elaborate on what you mean by the Balance to Balance product?

Every transaction requires at leasts one party to be a Verified Customer type, which means at least one party in a transaction will have a Dwolla Balance. That way, even if a Customer doesn’t have a Dwolla Balance, they will still be transacting with a party that does, so the above document still applies for referencing ACH transfer clearing times!

When you’re building out your funds flow, it is important to determine which party in the transaction will be a Verified Entity that has the ability to hold a balance in the Dwolla Balance. If you are only sending/receiving funds from/to your Dwolla Master account, then you would be the Verified entity, and the Customers can be Unverified or Receive-only. So, the Dwolla balance is always there for holding funds if required. You can definitely utilize the Balance to preload funds so that the credit portion of a transfer (Dwolla network to Bank account) will be faster. With standard timing, the transfer from a bank account into the Dwolla Balance takes 3-4 days, and the transfer from the Dwolla Balance to a bank only takes 1-2 days.

The Dwolla Balance is made available for account types that have completed “KYC” requirements, which includes clients of Dwolla and their end users that have been on-boarded as Verified Customers. All funds held in a Dwolla Balance are held by Dwolla’s financial institution partner(s) and not by Dwolla. So, you wouldn’t have to worry about any security implications of holding a Dwolla Balance.

Hope that helps! Pleases let us know if you have any questions!

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