Transfer payment with bank

Hello Sir/Mam,
I am integrating my application with Dwolla and Plaid. I am adding funding source with Plaid (using processor token). I am able to create funding source. But I am totally confused regarding how i can attach my bank account with Dwolla funding source.
I have created transfer process where i have used source and destination of funding source of two different users but i am not sure how bank payment will be transfer to the customer account. Could you please guide me flow of the funding source and transfer payment?
I have transfer money one customer to other customer funding source account. But i am checking in my main account, all the transactions are coming with processed status so could you please guide me. i have already read your all documentation so please don’t share documentation URL. Please guide me with process steps. I will be thankful for this.

Thanks & Regards
Lalit Kumar

Hi Lalit!

Do you have an example transfer Id which you’re referring to?

I can explain how transfers work in Dwolla. I’ll be linking the documentation wherever it can provide further information to reference in detail.

When utilizing Dwolla to facilitate bank-to-bank transfers, you can see that there are two steps involved in the movement of funds between banks:

  • ACH Payment In - Funds moving from the source bank account into the Dwolla Network.
  • ACH Payment Out - Funds moving into a destination bank account from the Dwolla Network.

Standard transfers from a bank to the Dwolla network will take 3-4 business days to settle. Standard transfers out of the Dwolla Network to a bank takes 1-2 business days to settle. So, a bank to bank transfer in Production can take upto 4-6 business days to process.

In Production, this process happens automatically, once you create a transfer, but in Sandbox, you would have to simulate bank transfer processing by hitting the Process Bank Transfers button. Hitting the button once will process the Bank to Dwolla Network portion of the transfer. Hitting it a second time will process the Dwolla Network to Bank portion of the transfer.

If you have any specific questions you wanted to ask how transfers work in Dwolla, please let us know!

Thanks for reply @shreya
Yesterday I have transfer payment with Dwolla.

My payment status is processed and it is not changing to success. I am in sandbox .
Will Sandbox also take same time to success payment. I think all the payments should be instant payment in sandbox mode. I have also attached my bank account with plaid + dwolla. So could you please review my account and let me know it is properly attached with funding source?
Funding source ID:- b9a8185d-aae7-4782-a04a-b10936081396

Thanks & Regards
Lalit Kumar

Ah, I see. Yes – all payments in Sandbox are instant, but you would have to simulate bank transfer processing.

The Sandbox environment does not replicate any bank transfer processes, so a pending transfer will not clear or fail automatically after a few business days as it would in production. The transfer will simply remain in the pending state indefinitely.

There are two options available for processing or failing bank transfers in the Sandbox environment.

  • Option 1: your application will call the “sandbox-simulations” endpoint (referenced below) which will process or fail the last 500 bank transfers that occurred on the authorized application or Sandbox account.
  • Option 2: you’ll use the “Process bank transfers button” in the Sandbox Dashboard, which will process or fail the last 500 bank transfers that occurred on your Sandbox account or any API Customers you manage.

If a bank-to-bank transaction is initiated between two users, you’ll want to simulate bank transfer processing twice in order to process both sides of the transaction (debit and credit). Processing for bank transfers will also include initiated micro-deposits. If your application is subscribed to webhooks, notifications will be sent, including all transfer or micro-deposit related events, letting your application know that transfers have processed or failed.

Accept: application/vnd.dwolla.v1.hal+json
Content-Type: application/vnd.dwolla.v1.hal+json
Authorization: Bearer {Your access token}


  "_links": {
    "self": {
      "href": "",
      "type": "application/vnd.dwolla.v1.hal+json",
      "resource-type": "sandbox-simulation"
  "total": 8

Looks like your Plaid bank accounts are being connected correctly!

One way to determine that is if the bank account you add is being verified or not. All banks you’d added using a Plaid token are attached as verified funding-sources.

Hi @shreya
Thanks for update.
I am facing issue when i am transferring payment from my debit or credit card funding source to the other user’s funding source account.
it is giving 400 error code with error message “[400] Error connecting to the API”.
Please guide me.
Thanks & Regards

@shreya here are some details
Source id:- 3e413150-fa2b-4657-9fd4-38fe78a15569
Destination:- 744fa91d-192b-4243-9d15-59f893eb0eeb

Hi @Lalit_Netset – Looks like you’re using our swagger generated PHP SDK.

You should be able to catch the error and get the JSON response-body by wrapping the request in a try/catch and displaying the error response by calling the getResponseBody() method.


    $new_transfer = $transfersApi->create([
} catch (Exception $e) {
    echo 'Caught exception: ',  $e->getResponseBody(), "\n";

As for the issue here, it seems to be that you’re trying to use the Debit card as the source. Only sending funds into debit cards is support using the Push to Debit feature. You cannot pull funds from a Debit card.

{\"code\":\"ValidationError\",\"message\":\"Validation error(s) present. See embedded errors list for more details.\",\"_embedded\":{\"errors\":[{\"code\":\"Invalid\",\"message\":\"Invalid funding source.\",\"path\":\"/_links/source/href\",\"_links\":{}}]}}

@shreya I am getting this error.
Source id - 744fa91d-192b-4243-9d15-59f893eb0eeb
Destination id- 3e413150-fa2b-4657-9fd4-38fe78a15569

Hi @Lalit_Netset

Looks like the above transfer attempts were from a Customer’s Debit Card to another Customer’s Bank account and vice versa. Both of these scenarios aren’t currently supported.

When using Push To Debit, you can only send funds from the Master Account’s Dwolla Balance to a Debit Card.

Thanks @shreya
I got it.