Integrating with Dwolla’s Powerful White-Label ACH Payouts Solution

Integrating with a white-label ACH API is ideal for businesses and nonprofits looking to streamline their payouts. Within your own application or online portal, Dwolla’s ACH payment API puts a powerful payments platform behind your brand and logo.

A white-label payment integration allows your business to transfer funds seamlessly, from customer onboarding to how your business name is displayed on your customer’s bank statement. Dwolla manages the role as payment originator, providing a simple, easy-to-implement bank transfer API to power your payments and assist in managing risk, fraud and compliance.

When implementing Dwolla’s ACH payment API, there are three major components that require different levels of verification to get going:

  1. The creation of a customer record
  2. The association of a funding source with that customer record
  3. The transfer of funds between linked accounts

To test the API requests, you’ll want to first create a sandbox account. The sandbox is a replica of the Dwolla platform and is available to test for free.

To get more granular, this webinar explains the 5 steps for a successful payment integration.

Creating a Customer Record

After creating a test account, your process to an ACH integration with Dwolla begins by creating a customer record which requires at least a full name and email address for each user you’d like to transfer funds to. Once the customer record is created, you will find the customer object URL in the location header.

Pro tip: To enhance your ability to monitor fraud, we strongly recommend providing the IP address of the end-user accessing your app as the ipAddress parameter. We also have additional integrations to help with risk management.

Connect a Funding Source

Once you’ve successfully created a customer record, the next step is to associate a funding source. This step in the ACH API integration calls for three additional pieces of information, so funds can automatically be sent to this customer record:

  • Bank account
  • Routing number
  • Account type (ie. government, nonprofit, business)

All information provided in this step is securely stored with Dwolla.

Subscribe to Webhooks

In order to transfer funds between your account and the customer record, webhooks need to be created to notify your customer when an event occurs. These real-time updates can be programmatically sent.

Start by creating a client access token and use the credentials provided.

Once you’ve generated this token, continue on to creating the webhook subscription. Start by calling the webhook-subscriptions endpoint with your callback URL.

Now that you’ve made your subscription, Dwolla will send webhook notifications to the provided URL. Responses take about 20 seconds to deliver after the event has occurred, but if you miss one, no worries—8 delivery attempts are executed over the course of 72 hours.

Transfer Funds From Account to Account

The final step in this ACH integration process is initiating a transfer from your account to a customer. To do so, you’ll need the information for the bank account that sources the funds and the customer to which the funds will go.

The transfer of funds is a three-step process:

  1. Fetch a list of available funding sources using the List Funding Sources (Account) endpoint.
  2. Create a transfer by specifying the account’s funding source as the source and the customer as the destination.
  3. Check the transfer status by referring to its ID.

Once this action is complete, a receipt of a webhook will indicate a change. This can be used as a trigger to communicate with the customer, sending an email with an update on the status of funds.

To get the full guide, visit our developer portal.

Learn More

If you’re not sure if working with payments provider is the right answer for you yet, read our guide, Comparing a Payments Provider vs. Handling Payments In-House. You will learn the benefits of integrating with a financial institution directly and the benefits of working with a payments provider like Dwolla.

If you’re interested in learning more about Dwolla’s powerful payments tools and API, get started today.

Start building in our sandbox for free, right now. Get a feel for how our API works before going live in production.

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