pay·out

/ˈpāˌout/

noun

  1. A payment of money from a business or organization to a customer, vendor or other business
  2. A payment process that Dwolla enhances by removing manual steps of issuing physical checks, to sending a payment with a few clicks

Payouts are a large part of many businesses’ routines—vendors, partners and customers may need to be compensated; services rendered and products purchased need to be paid for—and if you’re not strategically handling your payouts, they can be a huge hassle.

That’s where Dwolla can help.

Instead of wasting days or even weeks writing checks or paying the extra overhead to distribute them, Dwolla enables businesses to automate their payouts through the Automated Clearing House (ACH) Network. Dwolla’s technology provides the capability for companies to payout hundreds of individuals with a more cost-effective approach.

Utilizing our powerful mass payment feature, the Dwolla Platform can help you complete an ACH payout to 1,000 different receivers in fewer than 15 minutes.

How long would it take to write 1,000 checks?

“From an API standpoint, it’s so easy,” says James Eliason, a Delivery Manager at Dwolla. “You’d be surprised how much time a business can save by streamlining their payouts.”

Easy Does It

“Multiple customers have integrated our technology for ACH payouts over a single weekend,” Spencer Hunter, Lead Developer Advocate at Dwolla says. “The integration is really simple.”

Businesses using the Dwolla ACH API for payouts are able to:

  • Leverage the ACH Network to lower payment costs
  • Utilize Dwolla’s Instant Account Verification (IAV) or integrate with Plaid to easily add and verify a bank account in seconds
  • Monitor ACH payouts to easily track the status of funds
  • Send a mass ACH payout that delivers thousands of payments to individuals within minutes instead of days or weeks
  • Reduce costs from previous manual payouts procedures

“I like hearing our customers say they are using Dwolla for ACH payouts because typically those customers are seeing an immediate return on their investment from a simple process update,” Hunter says. “Because our ACH API and the documentation are really easy to understand, we see a lot of developers integrate with our platform quickly, meaning they can start sending ACH payments sooner.”

And considering that initiating a bank transfer for payouts takes seconds from Dwolla’s API, it definitely allows businesses to execute on payments faster than writing and mailing a traditional check.

Simple Sign-ups for ACH Payments

For businesses using the Dwolla Platform to send funds, with a lower-touch user experience, they would want to create Receive Only Users.

When onboarding Receive Only Users, businesses need to capture:

  • End User First name
  • End User Last name
  • End User Email address
  • End User Bank account information

Businesses can also collect more information from their end users through Dwolla by creating a Customer Record or Verified Customer Record, allowing those users to also send funds.

“This option allows for greater flexibility if the customer’s end users need to send funds back for any reason,” says Cory Anderson, a Developer Advocate at Dwolla, “It allows our customers to shape what kind of experience they want their end users to have.”

Making ACH Payouts Pay Off

Businesses can easily send up to 5,000 payouts with one API request with the Dwolla ACH API. This type of ACH payment batching is beneficial because bank-funded mass payouts only incur a single ACH debit from the bank account to fund the entire batch of payments.

“People were asking for batch disbursements to multiple recipients,” Hunter says. “We put together this API and now it’s used by hundreds of businesses. It’s great for bi-weekly payments or scheduled payouts, but we also offer the ability to call our API and initiate a one-time transaction.”

“It’s very easy, lightweight and probably simpler than getting out your checkbook,” Hunter says. “And more secure.”

If you think this type of technology could benefit your business, but you’re just not sure where to start, reach out and let one of our sales representatives recommend the best solution.

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