Product Update: IAV Sunset
Dwolla is in the process of updating our funding source verification options to better support the needs of our clients. At the end of this year, Dwolla will sunset our Instant Account Verification (IAV) product, which is powered by Dwolla.js.
To avoid service disruption, we recommend businesses currently using or planning to use our IAV service to migrate their account verification to one of our third-party data providers (e.g. Plaid, MX) before December 31, 2022.
Through the remainder of 2022, businesses using the IAV solution should prepare to carry out micro-deposits for account verification in the instance that a bank discontinues support for the current IAV technology.
Dwolla is continually assessing opportunities around instant account verification and other open banking services. Look for more information in the coming months on the initiatives that we will be exploring.
1099-K: Changes Coming in 2023
Dwolla issues 1099-K forms for transactions within our network that exceed certain federal or state reporting thresholds. For the 2022 tax year, the federal threshold for reporting of transactions lowered to $600 (down from the $20,000 threshold in 2021).
This will result in more 1099-K forms in the 2023 tax season.
Dwolla is actively working to roll out a process update to address these changes. Expect to hear more from us in the coming months about how this will affect your business and end users.
Dwolla is also seeking direct feedback as to how we can improve the 1099-K reporting process. If you wish to provide your feedback, please schedule a 30 minute discussion with our product team.