Unable Send a "Loan" Request

Hi Dwolla Team!

First, thank you for your great support. We really appreciate it!

We’re having an issue testing loans in our sandbox account. Here’s the details:

You can see we’re requesting “loan”, but the error is saying “General Ledger”. I’m unsure if loans is not on for our sandbox account, or if this is a bug:

This was the request body my team used:
request_body = {
name: ‘Test Loan Account’,
routingNumber: ‘222222226’,
accountNumber: ‘123456789’,
bankAccountType: ‘loan’

They this error for both user types (Verified Customers and Receive Only Customers)
{“code”=>“ValidationError”, “message”=>“Validation error(s) present. See embedded errors list for more details.”, “_embedded”=>{“errors”=>[{“code”=>“Invalid”, “message”=>“General Ledger funding sources are not currently enabled.”, “path”=>"/bankAccountType", “_links”=>{}}]}}



Hi @andrewhartman – thanks so much! We’re glad to have been able to support you in your integration!

Ah the error seems to have been triggered due to attempting to add a loan account to a Receive-only user. Loan accounts can only be added Verified Customers, which is why you’re getting an error, however, that’s definitely the wrong error message. Sorry about that! I will be creating a ticket for our team to fix the error messaging!

As for not being able to add a loan account to a Receive-only user, I’m working on finding out the design decision that went into building it out that way.

In the meantime, would you be able to help provide more information on how it would serve you use case to include support for loan accounts for Receive-only and /or Unverified customers?

@shreya Thanks again for your help and direction here!

We got clarification from the Dwolla team that we will need to use the Me2Me fund flow for loan payments. Could you help us with a few questions:

  1. How do we verify a loan as a funding source? Is it the same as a savings or checking account (API - Account // Routing Number, Dwolla.js - Instant Account Verification, Third party - Plaid)?

  2. If we do the API - Account // Routing Number option, I see that micro deposits are optional. Would these deposits be required in order to make payments to the loan? In our use case, we have the Loan routing number and account number of the user, so our preference is to create the funding source for the loan and simply make payments to it from another verified funding source added by the user.



Sweet! You’re welcome!

  1. There is no need to verify a loan account since it won’t be needing to be debited. But if you’d like, it can verified using the same methods as the other bank account types. (Microdeposits, IAV, or Plaid instant Auth).

  2. There is no requirement to send Microdeposits into the loan account before making a payment into it. Since loan accounts can only accept credits, they can remain unverified in the Dwolla Customer’s account.

Hope that helps! :slight_smile: Let me know if you come across any questions!

Perfect. Thank you!

1 Like

@shreya Me again! :slight_smile:

We believe we have loans turned on in our Sandbox environment, however we’re continuing to get an error when we attempt to add a loan as an unverified funding source. Here is what we are trying:

Customer: https://dashboard-sandbox.dwolla.com/customers/b9536e71-4c1b-46fb-bae1-6bf46c482ac4/details

Request body:

  "routingNumber": "222222226",
  "accountNumber": "123456789",
  "type": "loan",
  "name": "Loan Test"


    "code": "ValidationError",
    "message": "Validation error(s) present. See embedded errors list for more details.",
    "_embedded": {
        "errors": [
                "code": "Invalid",
                "message": "General Ledger funding sources are not currently enabled.",
                "path": "/bankAccountType",
                "_links": {}


  1. Are we certain loans are turned on in our sandbox account? If so, are we doing it wrong? :slight_smile:
  2. Can we attach loan as an unverified funding sources to customers that are in “retry” or “document” status before they are fully verified? We’re able to attach savings and checking accounts to users in “retry” and “document” status, so we want to be sure that is also true for loans. The benefit for us here is we have the information from the user so we want to make the attachment at that moment. The user could not move any funds to the account until they are verified, so we’re hoping this is valid use case.

Hi Andrew! :slight_smile:

Looking at your logs, everything you’re doing looks fine and should work as expected. However, I just tried this with my own Sandbox account and was able to recreate the error when trying to add a loan account to a Personal Verified Customer.

It appears that there’s a bug with the Loan account feature in Sandbox which is preventing from creating accounts and throwing the above error. I’ve created a ticket for our team to look into soon as possible! I’ll keep you updated here!

I would like to apologize on Dwolla’s behalf for the prolonged trouble you’ve been facing with trying to integrate with the loan account feature. We hope to get this resolved as soon as possible depending on our team’s bandwidth and priority. I know that you’re actively working on this integration, but just to gather some feedback I can share with my team, how urgently were you looking to get this feature incorporated into your use case?

@shreya We were hoping to have a solution in prod on Tuesday, so it’s a very big deal for us. Could someone reach out to me direct on possible short term solutions?

Thanks. Yes – Jake will be reaching out to you directly!

Hi @andrewhartman – Jake is probably reaching out to via email, but just wanted to update you here as well that the Loan account issue is fixed! You should be able to test with your existing code in Sandbox!

Apologies for the oversight, and thanks for your patience. Let us know if you run into any problems!

@shreya Great news! Thank you for you and your teams effort on this!

We did see that all Funding Sources are being created as verified, including those for Receive Only users.

You can see an example here where we added a loan as an unverified funding source, but it’s showing as verified: https://dashboard-sandbox.dwolla.com/customers/b9536e71-4c1b-46fb-bae1-6bf46c482ac4/funding-sources

This doesn’t block us, but wasn’t sure if that would have any downstream impacts?


@shreya One use case we do need to verify due to the issue we’re seeing above: Can we attach unverified funding sources to customers in “retry” or “document” status?

We see we can attach verified funding sources if the customer has “retry” or “document” status , but wanted to confirm unverified as well. This is time-sensitive for us if you’re able to get an answer to us today. Thanks for your help!

Hi @andrewhartman – it appears that we have toggled on a setting for your Sandbox account that enables you to add funding-sources that have been pre-verified on your end. This means, the verification takes place on Co-tribute’s end, and whatever funding-source gets created in Dwolla will be automatically verified. Which is why these bank accounts are added as verified automatically.

If you’d like to add a funding-source that hasn’t already been verified, and since that setting will override verification by default, you’ll want to pass an additional "verified": false request parameter which tells Dwolla to add the bank in an unverified state.

POST https://api-sandbox.dwolla.com/customers/{customer-id}/funding-sources


    "routingNumber": "222222226",
    "accountNumber": "123456789",
    "type": "checking",
    "name": "Jane Doe - Checking",
    "verified": false

Yes – a funding-source (verified or unverified) can be added to a Customer in any state other than deactivated or suspended.

@shreya Thank you for confirmation on both items!

Was there a reason the pre-verified option was toggled on with this latest release? It wasn’t functioning that way before, and we’d prefer not to make any change here. Is this required now? Is this also the case in our production environment? We’d request and preference would be that both environments function as they did before.

We do verify verified funding sources via Plaid and previously simply sent in the Plaid token to verify the funding source, but we also adding unverified funding sources to receive only customers by providing only account number and routing number, and now with loans are adding unverified funding sources to verified customers providing only the account number and routing number.

Hmm…another oversight on our end. This setting was never meant to be toggled on. Sorry for the confusion, Andrew!

You should be able to integrate as usual. No code changes need to be made. The loan accounts should now be unverified when you add them using the API. Only the Plaid token accounts will be automatically verified.

I also took this time to take a look at all of the custom settings for both your Sandbox and Production accounts and they’re up to date!

Again, so sorry for the confusion!

1 Like

@shreya Thank you! Very grateful for helping us get these last details nailed down. We’ve asked a ton of you the last few weeks and are so grateful for you consistent follow-up and communication.

1 Like

@andrewhartman, I’m just glad to have been able to help! Thanks so much for your message!

Happy integrating!! If you ever come across any questions, or roadblocks, do let us know! :slight_smile: