ACH goes real time with FiSync. Free for banks and credit unions.

Dwolla’s FiSync service is something that we’ve been working on for years in some form or another. We released the standard functionality in various forms last year to financial institutions across the country, but none of the iterations offered the most disruptive component: an engine to power real-time transaction of real funds.

As of today, we’re excited to announce that we’ve designed a real-time system that solves this problem. Not only does it solve the problem, but we’ve decided to give the answer to your banks and credit unions for free.

Why is this important?

I give you a dollar bill, and you know that dollar is worth 4 quarters, 10 dimes, 20 nickels or 100 pennies, but as Dwolla users, you know that when it comes to electronic transactions that is no longer the case. Since the 60s and 70s, new fees, costs, partnerships and structures have been built on top of what used to be a pretty simple idea, turning it into a confusing system that’s no longer recognizable. I swipe, you get paid 2-7 days later, the value of a dollar drops by ~2.75%, and $48 billion is lost.

At its core, the thing feeding this beast and moving your money from Bank A to Bank B is a 40-year-old system, facilitating a $33.9 trillion dollar exchange, called the Automated Clearing House (ACH).  Unfortunately, the way that it works, the processes that it requires, and the parties needed to be involved, take transactions two to five days to clear. Compounded by 80+ reject codes (which have a full 90 days for everyone to wrestle with), rampant fraud and unrealistic hours of operation, ACH isn’t the engine for real-time payments. It’s old reliable but it needs a helping hand to go real-time and not take a holiday break.

What worked well back when Disco and rotary phones were a good idea doesn’t work well now, and instead of innovating a new solution, we handed off the reins to Visa and Mastercard.

FiSync: A real-time API for financial institutions and service providers

The core component of FiSync is a real-time transfer system that allows money to move from one bank account to another, in real-time, and without using any of the existing systems, networks or resellers. That simple.

Giving it away for free

It’s not an API to solve a development issue, but an API to speed up a $33.9 trillion landscape and make it safer. We think that’s worthy of a $0 price tag, so we’re giving it away to your banks and credit unions for free.

No long drawn out contract, special treatment for different sized banks, or any precedence once a bank is signed up.  No sales cycles, no licensing agreements, no fancy dinners where I stroke your bank’s ego, just a pretty nifty SDK, with some endpoints and API keys.

For banks, credit unions and service providers, it allows you to:

  • Integrate with Dwolla’s cloud service to facilitate real-time payments, which is up and running 24/7 (so it won’t be closed on the weekends or federal holidays)
  • Gives you the ability to hold on to deposits
  • Protect your clients by requiring other financial institutions to verify account information prior to engaging in transactions
  • Bypass big scary ACH batch file

How does this benefit existing Dwolla users?

  • Transactions will start to shift from a wait time of 3-5 days to real-time availability and you won’t have to do anything. We’ll make the changes for you as your bank or credit union comes on board.
  • There is a verification layer which makes it more secure than traditional processes.
  • IT’S FREAKING REAL-TIME!!!

How does this benefit merchants / businesses / software providers?

Simply put, it makes Dwolla even more attractive. Developers are already harnessing Dwolla’s APIs to move millions a month, but the new development certainly bolsters the argument. Nothing changes, it’s just an added benefit.

  • You can innovate products on top of it
  • Money can hit your bank account or Dwolla in real-time
  • If you’re a merchant this means downline, real-time payments, for anything. That includes T-shirts, stocks, bonds, energy, utilities, gas…

Also, there are some API changes in the works, which are going to make some developers extremely happy as well.

A few added bonus items

  • Dwolla’s pricing and fees won’t change at all.
  • Dwolla’s core system and value propositions won’t change at all.

Now what?

If you’re a bank, credit union, or service provider to financial institutions you can apply to get access to the API here.

If you’re a marketplace / software platform / other provider who wants to leverage real-time in your software platform, grab your API keys and get ready for the next round of API updates.

If you’re an ATM / switch / set of pipes that thinks that this is a good integration opportunity for you, we consider you a service provider and would love to work with you expanding both of our capabilities. Please check out access to the API here.

If you’re a consumer, Veridian Credit Union comes online June 4th for all Veridian members, so I suggest you get a Veridian Credit Union account if you’re in Iowa ;)

  • http://twitter.com/TylerBeerman Tyler Beerman

    THIS IS A SERIOUS GAME CHANGER & THE END OF BIG BANKS RUNNING THE SHOW….. dwolla looks like it flipped the game on it’s back and is going to shake-up the entire industry!!!! Look forward to seeing people use this to improve the flow of electronic funds and frictionless payments!

  • http://www.facebook.com/michael.schonfeld Michael Lance Schonfeld

    This is seriously one of the more exciting things to have happened this year. Really. Imagine the possibilites this opens up, not just for the financial industry, but for everyone!

    • guest123

       To best of my recollection of living through the 70′s and 80′s, disco was never capitalized.

      • Bootsy’sRBLives

        your recollection is correct in reference to the capitalization of disco in the 70′s and 80′s.  The fact that the word disco is used even still is evidence that it has been capitalized in the ensuing time period.  A real time example giving support to this theory is my 14 year olds affinity for Funkadelic and Parliament!?

  • http://mattjhsn.org/ MattJhsn

    Will Veridian Credit Union give an account to Minnesota residents? I’d be happy to be a honorary Iowan for the privilege.  :) On that note have any Minnesota financial  institutions signed up with FiSync?

    • http://tech.gtaero.net/ Navarr Barnier

      As exciting and awesome as this is, I fear it’d only be beneficial if you were only trading money with other VCU customers from the sound of things?

    • http://twitter.com/Schornack Andy Schornack

      Looking into it.

  • trendslate

    Keep pushing the envelope! Great idea; hope adoption starts by banks

  • DarkMagess

    Now to try to figure out how to get my credit union interested.

  • http://www.clipik.com Pablo Lema

    This is a great step forward for financial institutions.  Congrats to Dwolla and the team.  What I couldn’t quite figure out is what is the incentive for current banks to spend resources to shift away from the status quo?  Seems like bypassing batch file is the biggest one?  What does that mean exactly?

    • JDBurnZ

      A batch file simply refers to a process which takes information in bulk, and performs a specific action on that data.. For example in a local Credit Union, all transactions for the day are written to a temporary holding space. Once a day, a script (batch file) is ran and all transactions for the day are posted.

      • http://www.clipik.com Pablo Lema

        gotcha and pretty self-explanatory.  so again, if I were a bank with an established process from years and years, what’s the one hook to use the API to dance around ACH?

        • JDBurnZ

          the one real reason i can think of is it would ultimately be for the bank’s customers.

          if i fill up my car with gas and pay for it using a debit card, i don’t see that transaction post until 2-5 days later. if my bank account is running low, this means i must be constantly balancing my check book over the next several days toensure i don’t overdraw.

          now the problem is the main way banks make money these days are on over-draft fees (a way they do it: http://www.cbsnews.com/8301-505144_162-36940430/banks-force-consumers-into-overdrafts/). so unless a surge of people left banks un-willing to adopt FiSync for a provider who does, i don’t believe the banks will be too interested in implementing it.

          i for one though, would gladly move to a credit union or bank offering FiSync even if it meant i lost a few of my existing perks.

          • http://tech.gtaero.net/ Navarr Barnier

            Isn’t this batch file the reason I’m allowed to overdraft and then add the amount necessary to the bank by the end of the day and avoid all overdraft fees?

            If so, I don’t want to get rid of it owo;

          • Guest

            Since when did banks actually care enough about their customers to spend money to make things better?

    • http://twitter.com/CaityLJones Caitlin Jones

      From the conversations I’ve had, many financial institutions see the value of FiSync as not only being real-time bank transfers, but also adding extra security layers that the current system lacks. There’s also the benefit it would bring to their personal and merchant account holders of having those real-time transactions, and for being innovators in the banking space.

    • http://www.facebook.com/aubreearias Aubree Arias

      First thing I can think of that seems obvious, is the amount of money banks could make on having real time transfers and no hold times. Realize banks invest huge sums of money and can probably find easy ways to create more than 2-3% (think of LIBOR fees). Or banks could move money to investment legs for high frequency trading positions… 

  • Thomas Hansen

    Any tips for how to approach my bank or credit union about adopting this?

    • http://twitter.com/bpmilne Ben Milne

      Thomas – We’ve had tremendous support from the credit union industry. Let’s talk in DSM soon but to be honest I think the CU’s as a group are figuring out ways to collectively benefit from FiSync on their own. It’s been pretty cool to watch and talk about the last few days.

      • Bryan Mishkin

        We’re very interested in using this capability in our mobile and online channels.  We’ve already requested an FI account :)

      • pacocornholio

        A list of participating institutions would really help here…

      • Brian H

         Hope both this and your expansion to Canada happen soon.

        As far as “incentives” for banks and CUs, competition for customers will be a significant driver.  Which bank/CU would you rather deal with: one with, or one without this capability?

      • http://blog.grovehillsoftware.com/ Matt Passell

        How about small banks that aren’t CUs? I have accounts at a bank with roughly 10 branches. The idea of instant transfers is exciting enough, I might do the coding for them. ;)

  • Stas

    Surely the banks are eager to lose $48 billion in revenues.

    • http://twitter.com/CaityLJones Caitlin Jones

      Fortunately there are a number of banks and credit unions that are more than ready to utilize a real-time transaction system :) They see the convenience and security benefits not only for themselves, but also their consumers. 

  • Hotcakes

    What does the FED think of all of this?

    • http://twitter.com/bpmilne Ben Milne

      Hotcakes – communicating with the bank of banks is an integral part of doing something that took us years to figure out. America needs IFT ! - http://blogs.reuters.com/felix-salmon/2012/03/30/america-needs-a-modern-payments-architecture/

  • http://www.facebook.com/ilporticodipinto Il Portico Dipinto

    Use bitcoins instead

  • Williamc

    Ben, I’m involved with a non-profit that receives donations via online Visa/MC payments to help keep the lights on and further the cause. This non-profit as a result pays 10′s of thousands in fees. Can FiSync help them in this situation?

    • http://twitter.com/bpmilne Ben Milne

      William – You actually don’t need anything related to FiSync for Dwolla to benefit your non-profit. Just use a regular Dwolla account and the hub page and you’ve got an avenue to accept contributions and save thousands. Paymentsystemsfees.com shows some of the pricing differences without FiSync consideration.

      • http://www.facebook.com/biz.burnett Biz Burnett

        Typo in the domain name above.  Correct is PaymentSystemFees.com .

  • Thor202

    Real Time ACH isn’t new. Large FIs don’t want it. Aditionally there is no incentive for them to install this product. They would do it to make money. How does a large FI make money here and not be worried about eating away at current business?

    • http://twitter.com/CaityLJones Caitlin Jones

      Hi Thor202 – we are actually in some really cool conversations with some large FI’s that have seen the value that this could bring to their business and their consumers. Some of them are coming around to the fact that times are changing and that things have got to become quicker and more secure, and whether they are going to be some of the first to use FiSync or a similar technology that someone else has built is really up to them. Many are realizing that they want to be the innovators, not the ones that follow behind merely because they have to :) 

  • http://nightwatch77.myopenid.com/ rg

    As people already said – banks will not be interested in free and instant money transfers. But maybe they could be forced by their customers.

    • http://twitter.com/CaityLJones Caitlin Jones

      Here’s some good news, banks are interested :)

    • Brian H

      Don’t fixate on fees. There’s MUCH more involved than that.  If all banks were on the the system, the huge ‘float’ of funds in transition would vanish, or rather return to the pool.  Even just share purchases and sales would accelerate considerably. 

  • https://www.facebook.com/matt.tagg Matthew Tagg

    Dwolla CEO: So it’s got all these awesome features,we’ve been working on for years …blah blah /nerdgasm .
    Banks: Does it make us more money?
    Dwolla CEO: Um.. well…

    • http://youngbloods.org Carl Youngblood

      Matthew Tagg: Yes, of course real-time transactions make more money for a bank. Time is money, in so many ways.

      • http://info.philipp-grunwald.de/ Philipp Grunwald

        Could you be SPECIFIC and outline what “in so many ways” are, for example? Just throw in a few facts and numbers! I think that’s all Matthew Tagg, I and the world watching is looking for.

        It’s like on my resume: If I don’t quantify it and coin it “result-oriented”, how could I expect to convince anyone? Thus: Quantify it! If you have problems, think about how your infographic for a bank CEO would have to look? After all you already created some of those. ;)

        • http://youngbloods.org Carl Youngblood

          Banks’ customers like to get their money faster and are willing to patronize banks that give them their money faster. As a business owner, I would rather belong to a bank that clears my funds now rather than in seven days. I willing to bet that many other customers think like me. Banks make money from customers, ergo more customers = more money, fewer customers = less money.

          To see the absurdity of arguing otherwise, just extend the speculation in the opposite direction. What if a bank decided to adopt a 30-day clearing policy because “ACH is too much work and delayed payments don’t affect our bottom line anyway”? What about 365-day delayed payments? Clearly there is a time value to money.

          • Jamesz32

            Agree completely. I get so upset with the lame excuse that banks need to hold my money. Its 2012 and everything is done electronically. There is no reason, except to lend out my money while it is being “processed”, to hold my funds.

    • http://twitter.com/bpmilne Ben Milne

      Actually. Increased transaction volume results in increased revenue. Not sure if you’ve been mislead by something I said elsewhere but please don’t hesitate to drop me a line at dwol.la/bpmilne and I’d be happy to explain further. 

      • https://www.facebook.com/matt.tagg Matthew Tagg

        Hi Ben,

        Wasn’t misled, clearly consumers want this. But I just think you haven’t, (as others have pointed out as well), made a good case for why the banks want it? I hope this is more a communications issue than a fundamental one.

        But lets assume for a minute that it may be as obvious as increased transaction volume, but then that must mean a decrease in transaction volume somewhere else. (eg probably Credit Card companies). That will have political effects amongst the stakeholders.

        It’s not like realtime, is creating intrinsically more transactions, eg I’m not going to rush out and sell all my 2nd hand stuff, just because the system is realtime or my company is suddenly going to start selling more widgets. Widget demand has nothing to do with realtimeness.

        I’m not being overly critical and if it wasn’t for the fact you’re located in Des Moines I wouldn’t have even thought it worthwhile to engage.

        • Tyler C.

          Community banker here, not a Dwolla salesman:

          Banks make most of their money on loan interest, not bank fees.  Going real time is a benefit to the customer, just like mobile banking and internet banking.  As the demand for real-time becomes more and more in demand, you’ll see bank and CUs adopting real time technology.

          What makes Dwolla attractive is they give it away for free.  Other companies have similar services, but charge tons of money for them.  Dwolla sees this as a benefit because more banks and credit unions adopt the technology, making their network bigger.  It’s not a technology that generates money for the bank, its a technology that saves banks money.

          What it comes down to is ACH is a dying technology.  As is brick and mortar banks.  Honestly, what’s the need to go to a bank anymore when the technology exists to be able to do everything through a cell phone?  Give it 10 years and see how close my prediction is to being true.

        • Brian H

          False.  Every delay and complication is a barrier to commerce; as they lower, volume and economic efficiency  increase. 

  • http://www.facebook.com/bob.aman Bob Aman

    Looking for some clarification. Would’ve gone directly to the documentation, but since you appear to have put all the FiSync-related stuff behind an NDA-wall, I’m just going to ask it here:

    Does FiSync require Dwolla as an intermediary, or is this a technology that could be used to send money from an account at Bank A to an account at Bank B without Dwolla being involved at all in the transaction?

    The post above talks about APIs, but I’m not about to get excited about an API. But a protocol could be interesting.

  • http://twitter.com/JonathanDrake Jonathan Drake

    Would like to see the online world for digital goods is what is being sold take this up.

  • Rebecca

    This is why I love, love, love my service from Veridian!

  • http://mattjhsn.org/ MattJhsn

    If this is in any way successful, watch for those “buyout opportunities” to come along so the status quo can kill your disruptive innovation.   It’s much cheaper to give 30 to 40 million (or whatever) to a few founders then it is to loose 48 billion in revenue. I can’t blame the innovators because 30 or 40 million would do anyone some good. -Matt  PS: They don’t tell you they are going to kill your company when they buy it. 

    • http://dwolla.com Jordan Lampe

      Noted, but not really the case. We’re very happy to be working with banks and, believe it or not, many of them are extremely focused right now on providing new and exciting feature sets for their users. Times are changing, and they know that that long-term success doesn’t come with making their customers angry, being “the man behind the curtain,” or tacking on fees for existing free services.

      I say this all the time: it’s easy to look at logos of the big guys and get angry, but when you start working with the people that work there, people that love finance and geek out about payments, you stop looking at them as logos and start learning (for free).

  • Jon

    if you’re interested in the domain ‘instantach com’, please get in touch

    • Lenwood

      Nicely played Jon. They invested time and effort into creating something of value and are giving it away for free. You purchased a domain for $15 bucks and are trying to sell it for a profit.

  • http://twitter.com/clieblich Cindi

    how do I find out if my bank participates?

    • http://twitter.com/CaityLJones Caitlin Jones

      Currently our only FiSync partnered financial institution is Veridian Credit Union in Iowa, but as banks sign I can imagine that they will be alerting their customers :) Thanks, Cindi!

      • http://twitter.com/ScottBieser Scott Bieser

        I would quickly move my accounts to the first credit union or bank to adopt your system. And if my current bank isn’t one of them, I’ll tell them why. I hope Dwolla can offer a list of institutions which have adopted their instant-clearing system. THAT will be the hook that entices more banks and c.u.’s to make the change.

        • http://twitter.com/CaityLJones Caitlin Jones

          Larger financial institutions are going to take longer to integrate and get set up, but that’s not to say that they aren’t already working on the process :) As more institutions roll out we’ll be sure to let you know!

      • Stefan A Shirley

         What do you think the possibility is of my bank, USAA of signing on to this program? They’re pretty big but very customer minded.

  • TiredOfAllTheHype

    Why would any bank or credit union sign up to use your API, knowing it will cut them out of the revenue related to other forms of payment?  By the way, ACH is not “scary”. What a silly thing to say.

    While this sounds like a cool service, many banks and credit unions already offer online and mobile P-2-P that consumers can use.

    Somebody’s making money here.  Hmmmm, I wonder who?

    • http://twitter.com/CaityLJones Caitlin Jones

      Hi, thanks for the feedback :) We’ve been having some amazing conversations with a number of credit unions and banks that do see the value add of a product like FiSync, and who looking to integrate with our technologies. A lot of people in the banking world see the benefits of real-time transactions, as well as giving their consumers the opportunity to transact in real-time. The ACH system as it stands struggles with a very high amount of fraud, something that a technology like FiSync will be able to help with by running verification and security checks that the ACH system does not, and by using a technology that we are giving away for free. 

  • Dave Sims

    Really exciting. Can’t wait for it to be available at an institution available to me.

  • Vaselogic

    This is very very cool in my opinion and I see the benefits for retailers and consumers, (banks too) but how quickly will banks adapt to Real Time???

  • gretajoon

    What are your sources for the ‘rampant fraud’ reference and what are your stop gaps for bypassing the ‘big scary ACH file?’ These are strong statements – what backs them up?

  • gretajoon

    There are vast differences between the card networks and ACH – and the two are melded into this one article. Do you know the differences?

  • Simon J.

    I find myself forced to ask the obvious since I have not noticed other posts on this topic.

    Can someone please explain to me why, as a consumer, I would care about the fact that my transaction happens in real-time? It sounds to me like only merchants would care about getting their money as fast as possible. If anything, I’m happy that transactions are slow since I get the product now and yet benefit from 3 more days of interest on the money in my bank account (not that the amount is large enough to matter!).

    And while you are at it, why would I want to stop using my reward card when purchasing from merchants? And please don’t tell me that merchants will pass the savings of not using my card on to me because I haven’t noticed the price at retailers going down since the interchange on debit card transactions went down several months ago.

    • http://twitter.com/CaityLJones Caitlin Jones

      Hi Simon, thanks for the comments. Personally, I like the real-time transactions because I am able to debit immediately from my checking account and know how much money I have in there at all times. I also like not having to worry about my debit or credit card information being exposed and stored at the POS, with the potential to be compromised later. Again, that is simply why I (as a consumer) am excited to use it. 

    • Brian H

      Merchants will save $$ on this system, and will adapt/tune their reward programs to reflect that — to induce you to use it.  

    • Bruce

       Simon J., I take it you don’t live in a state where the price of gas is determined by payment with cash or credit. The guy with the Dwolla card gets the cash price, you with your plastic get the credit card price.

      Merchants are going to push this like crazy.

  • markwilliams

    Good luck!  It’s pretty worthless until it’s being used by all banks and credit unions.  Are you just going to tell a customer to sod off, if they have a checking account from an RDFI that hasn’t spent the money to design, implement, test and roll out the FiSync interface?  ACH may be clunky, but it works.  I can’t see banks willingly giving up the ACH fees (fee per batch + fee per each transaction in the batch + monthly ACH account fees).  I’d like whatever you guys are smoking!?

    • http://twitter.com/CaityLJones Caitlin Jones

      Hi Mark, thanks for the feedback. We are giving away our technology for free, and we’ve had some really great conversations with some large financial institutions that are ready to roll. They see the value in offering their consumers real-time transactions, as well as making the transactions more secure. For many of them it comes down to who is going to innovate, and who’s going to follow. 

      • Brian H

        Exactly see my comment above about competition. Customers will migrate to early adopters, and leave laggards.  

  • patw

    Any credit unions in Minnesota (especially the Twin Cities area) on board?  I’m looking to ditch my bank anyway, and FiSync support would be a great reason.

    • http://twitter.com/CaityLJones Caitlin Jones

      As more roll out, we’ll be sure to let you know :) Thanks for the support!

  • Trevor

    And Dwolla blows my mind AGAIN…. I gotta start reading this stuff sitting down :)

  • http://twitter.com/ejboyl Ed Boyle

    Ben et al, thanks for doing this…I love it and hope it sticks.  I’ll ask my dev team to look into how we might utilize for the web tranx we expect to process soon.  I can attest from my days running Prepaid at Amex that getting funding with a 3+ day delay is a HUGE issue….real-time funding is da bomb!

  • http://www.facebook.com/lucas.weeks.12 Lucas Weeks

    What are these “security benefits” that you are talking about? I love what I’m hearing about dwolla… but despite all the benefits of dwolla, I’m a little nervous about security. If someone gets access to my account, am I screwed?

    What are the differences in terms of security between my online bank account (speaking generally, of course) and dwolla? And then, what are the differences, again regarding security, between dwolla and credit cards?

    • http://twitter.com/CaityLJones Caitlin Jones

      All of our data is encrypted and protected by our security partners and by our own proprietary network and technologies that we have built. Unlike credit cards, none of your financial information is exposed or stored with the transactions that you make. The ACH system as it stands is riddled with fraud. FiSync bypasses the ACH system and is designed to be integrated directly into the core of the bank, where we can make those security checks instantly and will be able to add extra layers of security that the current system lacks. 

  • http://www.facebook.com/dailyharold Harold Martin

    So excited that Veridian is on board in June! Joined them back in January and now this makes it even better! Way to go Dwolla!

  • Dbs

    As a consumer, I can’t wait for the first BANK or accessible CREDIT UNION to open up to us.  Maybe you can convince a credit union to permit Dwollites into their customer group.  :)

    • Brian H

      Or create a credit union?  

      • bpmilne

        Veridian Credit Union goes live on the 4th :)

  • Maximinfotech

    So both banks, Bank A and Bank B (from the description above) would have to be leveraging these APIs for me (a consumer) to be able to transfer money between them. Is that a correct understanding ?

    • http://twitter.com/CaityLJones Caitlin Jones

      Both Bank A and Bank B would need to leverage FiSync in order for you to transfer money instantaneously between them. However, with the way Dwolla works now, you can move money between any U.S. financial institutions, however there will be delays due to the use of the ACH system.

      Example: I can move money instantly from my Veridian account into Dwolla. However, if I was to withdraw that money to my Wells Fargo account, it would take 2-4 business days.

      • JC

        “However, if I was to withdraw that money to my Wells Fargo account, it would take 2-4 business days.”

        Which, oddly enough, is how long it took their stage coach back in the early days.

        All this ‘innovation’ and some things just stay the same.

  • deezy

    This creates a great profit margin for the banks by keeping their same fees as well as increasing the speed for the customer. I have been a member of dwolla since early on and have been watching them almost from the start. I think this is one of their best developments yet. KEEP IT UP GUYS. 

  • http://www.facebook.com/people/Todd-Scholl/1633612098 Todd Scholl

    So if an ISO integrated this into one of their applications such as a gateway could they benefit financially with this from a reseller perspective?

  • Eric Anderson

    Won’t the sending AND receiving financial institution need to be on board with FiSync for this to work? What happens if the sending bank/cu is using FiSync and the receiver is not?

    • http://twitter.com/CaityLJones Caitlin Jones

      If the sending user has FiSync, that transaction will reach the receiver’s Dwolla account instantly. The receiver (without Fisync) could then withdraw the funds to their bank account, but this will not be instant. It will take 2-3 business days. 

  • http://www.facebook.com/profile.php?id=1613880116 Will Moss

    glad that someone is working on changing the world’s awful banking system

  • Dave_king

    Can you tell me more about your “verification layer”?

  • Sunk818

    I’ll give you two clear examples why this is great

    1) my Amex only gives me $10,000 credit line. I charge $20,000 a day. If I could submit payment in real-time I could give Amex all the business even with a lower credit line

    2) my supplier wants real time payment. Instead of cc I can pay by dwolla. We can negotiate a lower price since the supplier expense is lower now

  • ericbucher

    Looks good!  Too bad we cannot push payments from out from an app using Dwolla.  That could add millions of transactions.  Now, that could be a game changer!  I hope someday you can support this.

  • Alex

    ACH is already 1 day.  How come it takes 5 business days to get funds from PNC (a pretty modern bank)?

  • Alex W

    This is great!  I can’t wait for this to catch on with all the banks.  I think many banks will embrace it as p2p and billpay features which usually are offered for free cost the banks money using the existing methods. The customers will definitely embrace it.  If the security is better as well, I can’t see what’s not to like!

  • Rich O’Brien

    Consumer awareness and adoption rate will be critical. With this announcement you’re probably on the radar. Unfortunately, not consumers’ radar. Slow adoption, certain death. It’s Facebook / Twitter time . . . .

  • Holley

    This is fantastic! As a merchant I had been on the fence about choosing Dwolla due to the wait time for purchase payments. Having consumers wait until their payment clears their bank before I could officially make the transaction is not an option for a new online small retail business. This API if accepted by my bank could change the way I process payments and essentially increase my chances of success without having to pay for excessive credit card payment processing fees. This is what I was waiting for from Dwolla, and now I hope the financial institutions jump on this as the beginning of the future of shopping and obviously so much more.

  • http://twitter.com/shamir_k Shamir Karkal

    Good for you Ben – looking forward to playing with this.

  • http://twitter.com/_AndreThomas_ Andre Thomas

     Still wondering why this has not been introduced much earlier as real time transactions are a real benefit for the customers , no doubt …

    Probably because of the fact that the actual delayed transaction includes an additional level of security concerning the ability for deeper proof of
    the transaction partners or in case of fraud detection some sphere of influence to interfere.

    Since the delay in recent payment methods is very much dependent on additional security measures to defend against various fraud attempts
    the whole procedure includes much more than the actual logistic problems in processing transactions. Cutting various steps of the transaction process
    in order to speed up proceedings doesn’t seem to be a good idea in this regard. Protection operations will have to expand the process the more popular
    the service gets and fraud interests grow out of this fact.

    So e.g. it seems to be quite comprehensible that opening a banking account demands much more than opening an email account with a simple verification
    of the email adress ….

  • Netoracle2001

    I am cynical about this…while I completely embrace this company’s bold venture…I don’t see the “giant’s” as being willing to embrace this software…it just means billions of dollars that THEY will not make as a result of real-time transactions. They are the blight of this earth…actually reinforcing poverty…for what can only be identified as indentured slavery. It hit me today as I wait for an ACH Transfer (which by the way I just recently found out about the automated clearing house) how much money they were making just by delaying my transaction…using MY money to leverage profit for themselves without giving me anything in return for using it…isn’t this very similar to embezzlement…I mean…I am entrusting my money to be used for a specific purpose…and well, they are using it for their purposes and when they are done…then they take care of my purpose…7-10 days later.

  • http://twitter.com/kristian_c Kristian Christensen

    What’s to say – This is simply brilliant!

  • Mona Ali
  • كيمو نور
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