Production Account Rejected, Why?

I’ve signed up and uploaded required documents for a production account since my app is on the verge of launching, and got an email from a correspondent named Jahzel Fristo. After a few weeks of wait, they came back saying that Dwolla isn’t a good fit for my business with some information that I think is not correct.

Here is their claim:

Sorry for the delay here. Looking at what you had sent me about the payment needs, we may not be the best solution since one user has to be a verified customer in the facilitation model that you are looking for. Only verified customers can send funds to a master account and also, once you are touching funds that are going from one user to another the question of money transmission comes to mind.

Here’s what I know:

  • An unverified user can send / receive fund to / from a master account up to $5000/week.
  • What kind of question of money transmission arises when fund passes through my app’s master account, since the master account is exactly for facilitation purposes and Dwolla provides a way for unverified customers to interact with it?

My app completely deals with transactions between two unverified parties gracefully and sync all related transactions with the same correlation ID that can be tracked down. This is really frustrating to me considering we’ve invested months worth of time and money to integrate with Dwolla and what I got is a hand-waving information that I think isn’t correct.

EDIT: Now they admitted I was correct about the unverfied users claim and told me to consult an attorney since my master account will be holding money. Do all Dwolla customers providing users with a way to send fund to master account balance should consult attorney? Why is this NOT documented clearly that sending money with Dwolla through master account is considered legally barred? It isn’t acceptable to get this without some explanation or remedy.