At Dwolla, we pride ourselves on offering businesses a secure, scalable and reliable way to move money through the U.S. banking system. For years, a large majority of our Clients considered the traditional checking and savings bank account types sufficient for the applications they were building. But as the payment landscape evolved, banks and other financial institutions have modernized as well. As a result, developers and businesses seek to create applications that can connect to the U.S. banking infrastructure in even more ways. 

No longer are applications tied to just  checking and savings account types; the Dwolla platform has expanded. We’re excited to announce support for both loan and general ledger funding source accounts.

Opening up bank transfers for these new account types allow for greater possibilities for your applications. We can explore these by reviewing each funding source account type and how their interactions with the Dwolla API differ and add value to your app. 

Checking // Savings Accounts – The Foundation

Availability – All API Clients 
Functionality – Debits and Credits to both `checking` and `savings` accounts
What We Need – Account Number and Routing Number OR Online Bank Credentials

Dwolla was built on the foundation that distributing funds between banks should be as easy as possible. For this reason, Dwolla has tried to make a seamless onboarding process for your end users to add or verify their bank funding sources. Not only are checking and savings account types supported for all Customer types, but we’ve simplified bank addition and verification for all users. 

Your end users can add bank accounts via:

  • Dwolla API [Account Number and Routing Number]
  • Instant Account Verification [Online Bank Credentials] 
  • Third Party Integration [Online Bank Credentials]

Loan Accounts – Paydowns with Payoffs

Availability – API Clients with Proper Clearance
Functionality – Credits Only
What We Need – Loan Number and Routing Number 

While deposit accounts are the most popular funding source account types to add, this might not cover every application’s use case. Let’s imagine you’re building a new savings app, but rather than your Customers simply transferring funds from their checking account to their savings account, they could automate payments to their student loans. 

For API clients, with approval, Dwolla’s white label API supports the new loan account type, adding additional opportunity for businesses’ applications. 

Loan accounts are supported for all Customers with a verified identity. Once onboarded, your end users will need to identify the loan provider’s financial institution. From here, the end user will need to retrieve the Loan Number and Routing Number for the specified account so that payments are able to be successfully processed.

Credits to a loan account can come from a checking or savings account, which makes paying to an end user’s loan account a seamless experience with Dwolla.

General Ledger Accounts – Bring the Bank to You

Availability – API Clients with Proper Clearance
Functionality – Debits and Credits
What We Need – General Ledger (GL) Account Number and Routing Number

Our next bank AccountType was created to answer the question, “What if my Customer isn’t just adding a regular bank account—because the Customer is the Bank?” For example, let’s picture an application that would be needing to onboard financial institutions. As part of the application’s offerings, these banks ultimately incentivize financial responsibility for the end user and plan to pay out Customers who are on time on their loan repayments. Previously, onboarding a banking institution and adding their General Ledger (GL) account would have been impossible with the checking and savings account types that were a default with a Dwolla integration.

For API clients with proper authorization, onboarding a bank and adding a General Ledger account is fairly straightforward. There are three steps you need to follow in order to onboard a banking partner as an end user:

Step 1 – Onboard your Exempt Business Verified Customer

Dwolla only supports General Ledger accounts to financial institutions.

Onboarding these organizations is unique in that they are exempt from the onboarding requirements associated with the Beneficial Ownership rules.

Step 2 – Identity Verification and Confirmation

Once onboarded, Dwolla will need to receive additional information to identify the legal entity that is authorized to transfer funds to and from the General Ledger account.

Step 3 – Add the General Ledger Account

Your Customer can add their General Ledger account at any time. To do this, they will simply pass their General Ledger Account and Routing Number to the API. Dwolla will automatically verify the funding source, meaning this funding source will be in a fully-transactable state.

Further Flexibility

Dwolla’s API provides a dynamic way to not only create and onboard Customers, but we also offer a flexible option to add depth to your application. By offering traditional checking and savings options, as well as the loan and general ledger account types, businesses are able to build additional value for their end users.

For more information on how to enable loan and general ledger accounts for your sandbox app or your production app, get in touch with our team.


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