- Monthly payouts via paper checks are costly, averaging roughly $1.00 per payment.
- Digital solutions streamlined and accelerated the payments process, improving vendor satisfaction.
- By passing on the additional savings from using Dwolla, Clear Capital is now able to double the frequency of payouts each month.
About Clear Capital
Clear Capital is a nationwide provider of residential and commercial real estate valuations, data and analytics, quality assurance services and technology solutions for mortgage lenders, servicers, investors, GSEs and Ratings Agencies. Their solutions include appraisals, broker price opinions, property inspections, commercial valuations, value reconciliations, appraisal review and risk scoring, automated valuation models, home data indices and platform products. Founded in 2001, Clear Capital recently received Morningstar Credit Ratings, LLC’s highest Residential Vendor Ranking, MOR RV1. After receiving feedback from their network of more than 40,000 real estate brokers, agents and appraisers requesting an online option for receiving payments, Clear Capital began looking for a digital option that was secure and easy to implement with their current platform.
Overview of Problem
Vendors wanted a faster and more modern payment method: The financial and administrative costs of paper check processing constrained Clear Capital to sending one payment per month to their network of real estate brokers, agents and appraisers. Their vendors began asking for a direct deposit alternative that could speed up cash flow and align more closely with the completion of work.
Security, liability, and privacy concerns: Moving to a traditional direct deposit or ACH processing platform would have required Clear Capital to collect sensitive account and bank routing numbers from their vendors—increasing their compliance and risk management costs due to the privacy and information security concerns.
A new solution requires ease-of-use and trust: Vendors were familiar with traditional ACH direct deposit where they would provide bank account and other personal information by form or voided check. They were less accustomed to an entirely online sign-up process. The digital payment solution needed to be as frictionless as possible, and evidence clear benefits—faster payments more often.
With an affordable cost structure, powerful payments tools, and flexibility to accommodate both large and small customers, Dwolla is an easy solution for streamlining and modernizing disbursement processes. The company presented Clear Capital with options ranging from a free account on Dwolla.com to high-tech integrations capable of hosting Dwolla account creation within a vendor’s existing dashboard.
Faster, simpler disbursements: Dwolla processes a wire transfer from Clear Capital same-day and disburses the amounts owed to thousands of vendors via the Dwolla MassPay API, sending funds directly to the clients’ respective bank or credit union accounts. This cuts transfer times to just 1-2 business days. When Clear Capital began making two monthly payments instead of just one, a convenience its vendors have been asking for, it was a seamless process.
Improved data security and privacy: Private bank account and routing information is never visible to anyone at Clear Capital, thus reducing information security risk. To receive payments, a Clear Capital vendor can set up a Dwolla account using an email address and password, then securely link a bank account—all within their Clear Capital dashboard. Clear Capital distributes payments using only the recipients’ email addresses; funds are then routed straight to the vendors’ bank or credit union accounts. Vendors receive real-time notifications when Clear Capital initiates their payments, and when funds are expected to become available.
On-boarding customers successfully: Dwolla’s straightforward partner site registration, easy-to-use payment process, and dedicated customer support staff collectively enabled customers to seamlessly transition from receiving physical checks to digital payments. After five months, Clear Capital transitioned more than 30 percent of their total payouts recipients to Dwolla.
Going digital within resources: The lightweight integration of Dwolla account creation within the Clear Capital dashboard, together with the Dwolla MassPay API, allowed Clear Capital to quickly establish an improved disbursement process for their vendors.
“When our brokers, agents and appraisers in the field are happy, it’s a win for us. Dwolla has eliminated a big frustration from our network of real estate brokers, agents and appraisers when checks go missing in the mail. A digital solution has saved us more than $.80 per payment, which has allowed us to pay them more often—twice a month, instead of just once at the beginning of each month. As a technology company ourselves, we are familiar with costly and time intensive integrations. It has been seamless to integrate our application with their system.”