By: Joey Aguirre,

Paper checks are old school.

Dwolla saves companies and their employees time and money by improving their recurring or single-entry payout process. We’ve reduced the complex nature of the ACH protocol down to several statuses for bank transfers and payouts.

Using the Automated Clearing House (ACH) enables businesses to electronically initiate a single-entry or recurring payment from or to customers. Dwolla offers a mass payment tool to alleviate the costs of outdated payout processes and allows up to 5,000 payments to be sent with one API request.

This blog will further explore both single and recurring payouts and how Dwolla’s API remains invisible while handling a variety of use cases.

Payouts

Affordability 

Also known as a mass payment, mass payouts offer a significant advantage over repeatedly calling the endpoint for individual transactions. A key benefit is that a bank-funded mass payout only incurs a single ACH debit from the bank account to fund the entire batch of payments.

Comparatively, the alternative approach incurs an ACH debit from the bank funding source for each individual payment.

Pricing that takes a fee or portion of every transaction can stifle profit growth.

That type of pricing model was one of the reasons Qoins switched its payment provider to Dwolla. Qoins is a mobile application that rounds user’s purchases to the nearest dollar and uses that change to automatically send out payments to pay off the user’s debt.

Qoins needed to facilitate the distribution of funds from users’ verified bank accounts on a monthly basis…so Qoins needed a payment solution that could scale and integrate seamlessly.

“We needed a reliable payments platform that could deliver an API that simplifies the process and allowed us to deliver the basic functionality our application required,” said Qoins cofounder and CTO Nate Washington. “The API did just that and more…and we knew we could count on their team as a long-term provider as we grew our company.”

Automate manual tasks

By automating a business’s payouts process, customers can receive timely payouts while businesses reduce their costs associated with manually managing multiple payout solutions.

Dwolla’s v2 API is a RESTful API, following best practices in its design and improves on the developer experience from the legacy v1 API.

Dwolla’s mass payment tool is easy for customers to access and manage without any technical support. A mass payout can be sent in a few clicks. It’s as simple as uploading a CSV file with email addresses and corresponding payment amounts.

One of Dwolla’s customers—Relay Delivery—saved nearly $1,200 a month by integrating with Dwolla to modernize their payout process.

Using only one developer, this restaurant delivery platform was able to automate its customer onboarding experience and payouts flow by integrating with Dwolla…and it only took two weeks.

Previously, Relay would gather banking information through a paper signup process and manually type routing and accounting numbers into their banking interface.

“In implementing Dwolla, we’ve fully automated the signup and disbursement phases,” said Zach Ivester, Relay Delivery Integrations Architect. “We’ve freed ourselves to focus on what’s important…our business.”

Monitor transactions, find trends

Dwolla powers ACH transfers while making sure your users’ sensitive financial information never hits your servers.

While our servers prepare a mass payout, each item is processed one after the other, at a rate between 0.5 seconds and one second. We typically expect a 1,000-item mass payment to be completed in no more than 16 minutes.

And with our uptime rate above 99 percent, our servers were built to be resilient to failure and respond to errors in a way that keeps your application online and running.

After making a mass payout, Dwolla’s customers appreciate access to an intuitive dashboard.

The dashboard features an interface with three key aspects for administrators:

Dwolla’s simple interface allows administrators to look up and manage customer information and transactions. From editing user details to viewing transaction history, the dashboard makes it simple to support and schedule a mass payout or single-entry payout.

Dwolla’s dashboard allows administrators to easily reconcile payments and view transactions sent across the application. Administrators can monitor transaction statuses without needing to build an internal display from the ground up.

And using beautiful graphs and charts—with data populated by Dwolla’s API—provides administrators with desired insights into key business metrics and trends.

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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.