Pay Down Credit Card via ACH

Hi,

I would like to help my users pay down their credit card balances from their bank accounts. I can link their bank account using Plaid Auth and look at their credit card balance via Plaid Liabilities, but I am having trouble understanding how to send money via ACH from their bank account to the bank issuing their credit card. I can onboard the users to be Personal Verified Customers, but how do I get the routing and account numbers associated with the bank issuing the credit card? Furthermore, do I need to create a Customer for the bank issuing the credit card in this case?

Thank you.

Hi @vickgid

They will need the routing and account numbers of both banks in order to do the me-to-me transfer flow. This Transfer Money Me-to-Me guide illustrates the steps required for this type of flow.

Kelly,

Thanks for the quick response! I was under the assumption that I could use Dwolla IAV or Plaid to connect the funding sources without the routing and account numbers for the associated accounts. However, it’s not clear to me whether or not I can use these methods to connect the credit card accounts - is this possible?

Thanks!

Hi @vickgid

Yes, this is correct. Apologies for the way I worded it in the response prior. But essentially we will need both banks added as verified funding resources, so that they may process with the Me-to-Me transfer flow

Unfortunately, not with a credit card as credit cards do not have routing numbers. So your end user will be verifying the savings or checking account attached to their bank issuing credit card when setting up this additional funding source for the Me-to-Me transfer.

As someone who used to work at a bank I can see the User Experience for this use case being something like this:

Let’s say I’m already a Personal Verified Customer with a verified funding source on your app, Bank A, I would go to your app and add an additional funding source, Bank B (who issued me my credit card, and who I also have a savings or checking account with).

After transferring my money from Bank A to Bank B on your app, I the user would, (Now outside of the Dwolla network), log into Bank B and make the payment to my credit card from there.

Let me know if this helps, @vickgid. We don’t have a way to interact directly with credit cards at this time, but this is how I see the user experience being for this use case.

Thanks for the clarifications! I know understand the limitations a little more clearly. We are hoping to mimic a ‘Bill Pay’ functionality that is widely used at most banks such that I could theoretically pay the balance of my Chase Credit Card via my Capital One Checking Account (the payment goes to Chase Card Services I believe). It would be helpful to know if this type of transaction is on the roadmap for Dwolla.

Kindly,
Vick

If it’s not on the roadmap already, I’ll make sure to put this in myself as a business use case request. Thanks, @vickgid !