By: Ben Milne,

Last week, 2 events occurred that effected a group of Dwolla users. The 2 issues that arose are:

Issue #1 has been resolved

We will send direct e-mails to those of you with an additional entry in your bank statement confirming the issue. We’re sorry for the extra clutter in your inbox today, but it’s important that we proactively clarify any possible misunderstandings caused by our system, regardless of how little or big they may be.

There should be no reason you’ll hear about it again, and it will not effect any other transactions other than those initiated yesterday. If you have had an issue where our error caused a fee from your bank we will reimburse you for that fee/error.

Issue #2 has been resolved for future transactions 

A calculation, which uses a date-based, value-weighted algorithm to release certain bank-funded transactions, did not perform as intended after the first of the year.

Needless to say, this is not normal and it should never happen. Our engineering staff has torn a part the logic, which up until this point had a 99% success-rate, and have upgraded the program to correct the problem.

I’m personally refunding those effected for the transaction fees. This won’t come from Dwolla, it will come from me, and while I don’t presume that 25 cents will resolve the negative experience incurred because by these delays, it’s something that’s important to me. If we don’t get your return business, at least I know that we aren’t profitting from our mistakes like a bad banker.

Every experience matters

A great experience matters every time someone uses Dwolla. A group of account holders did not have a great experience. If Dwolla fails to recognize where we made mistakes, we won’t be able to build the company we are here to build.

To those affected, I apologize. We can do better, we will do better, thank you for sticking with us to build the best network in the world.

– Ben


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Financial institutions play an important role in the Dwolla network.

Dwolla, Inc. is an agent of Veridian Credit Union and Compass Bank and all funds associated with your account in the Dwolla network are held in pooled accounts at Veridian Credit Union and Compass Bank. These funds are not eligible for individual insurance, including FDIC insurance and may not be eligible for share insurance by the National Credit Union Share Insurance Fund. Dwolla, Inc. is the operator of a software platform that communicates user instructions for funds transfers to Veridian Credit Union and Compass Bank.