In order to accept ACH payments, you’ll need to connect and verify your users’ bank accounts. Dwolla offers a few ways to do this for users connecting to your platform or application.

First, if you’re new to Dwolla let me provide an overview…Dwolla has built a powerful API that acts as an easy on-ramp to the ACH network. With Dwolla, your business can facilitate bank transfers to, from, or between bank accounts in the United States. For example, if you are platform for managing rental payments via the ACH network, Dwolla’s White Label API would be a great API to put in place to do so.

We’ve provided several Dwolla use-cases right here to get your wheels turning.
If your business is using ACH-based transactions, it’s important to consider whether your business should verify bank accounts. This verification is done for a variety of reasons—safety, security, etc—and is especially helpful if you’re collecting from a connected bank account. Primarily, verification can help you ensure funds are coming from an actual bank account.

At Dwolla, we offer a few ways to verify bank accounts within our White Label bank transfer API, which I’ll walk you through below. In short, the options include:

  1. Instant bank account verification ONLY
  2. Instant bank account verification with a FALLBACK to micro-deposits
  3. Instant bank account verification or OPTING for micro-deposits

Now we’ll break each option down into more detail…

Instant Account Verification

Dwolla.js, for White Label, allows you to integrate instant bank account verification (IAV) in just a few lines of code. In this option of verification, a user is prompted to select their banking institution; they can either choose one of the popular banks listed or type in their bank in the search field. Next, the user enters their online banking credentials to verify the account.

Better yet, dwolla.js can be tailored to match your branding—from color, to font size and style. So if you’re more of a Helvetica fan, you’re able to change the flow’s font to accommodate.

Instant Account Verification with a fallback to micro-deposits

Instant account verification accommodates a vast majority of the U.S. banking population, but if a bank isn’t included (a bank may not have online banking login, etc), then there is an option to “fallback” to micro-deposits.

This flow looks a lot like plain ol’ IAV, with a significant difference. If there is an error in using the instant verification, then the user is prompted to “Try another bank” or “Use deposit verification.” When using deposit verification, the user will input their routing and account number. Here, Dwolla will deposit a few small amounts to confirm the account belongs to the user.

Instant Account Verification or micro-deposits

The third option in the series has only a minor difference from the option listed above. With IAV, fallback to micro-deposits the user must first try to use the instant verification flow. However, with IAV or micro-deposits the user can select which route they’d like to go from the start.

If a user simply chooses micro-deposits right off the bat, then they’ll be prompted to enter their account and routing number. Dwolla will then continue as usual, and deposit a few small amounts into their account for the user to track and confirm.

Understanding ACH

When integrating ACH transfers into your platform or business, it’s important to understand the details. Dwolla has built a really comprehensive solution to help you manage customer transactions, account verification, and more. A few key differences, that you may not find elsewhere:

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