Dwolla customers are able to preload their Dwolla balance with a wire transfer, in order to electronically transfer funds from one bank account to another.
Wire Transfers vs ACH Transactions
Wire transfers are distinctly different from ACH transactions. Wire transfers allow for funds to be electronically transferred and settled directly between bank accounts, typically within a few hours.
ACH transactions are processed in batches by an intermediary and tend to have a lower fraud rates than other payment types. These benefits come with a cost however—speed. ACH transactions can take 3-4 banking days to process and while Dwolla offers faster—yet secure—payment options like same day ACH and next day ACH, even those features can’t compete with wire transfers for expediency.
Dwolla’s API primarily leverages the ACH Network because the benefits for businesses far outweigh its deliberate process. Still, we recognize there are times when our customers need to move funds faster. That’s why we offer our customers the option to use wire transfers to preload their Dwolla balance for automated payouts.