This is a guest post from Jason Doshi, CEO & Co-Founder of paymints.io
There are two threats to the real estate and title insurance industry: cyber criminals who manipulate bank account information for their own financial gain and inefficient manual payment processes.
With paymints.io, minimize the risk of fraud associated with manual payments by eliminating paper checks and adding automation to your experience. We do this through our integration with Dwolla’s payment technology to bring ACH and Real-Time Payments (RTP) to real estate. Dwolla helps us easily access the ACH Network and RTP® network to offer a safe and efficient way to transfer funds in the real estate and title industry.
Using Dwolla’s flexible payment API, paymints.io is able to act as a digital real estate transaction coordinator for agents and homeowners who are refinancing, or homebuyers looking to secure their dream home. A real estate transaction coordinator handles many of the duties related to selling a home, and our software provides a simple and secure solution for real estate transactions.
With Dwolla, paymints.io has been able to eliminate the need for homebuyers to find their checkbook or initiate a wire transfer for earnest money deposits. Our secure, digital process takes about 60 seconds to initiate a payment and enables the customer to easily track the funds from their bank account to the real estate brokerage or preferred title company’s escrow account in real time.
A homeowner can use our platform to transfer cash-to-close from their checking account to the title company’s escrow account. No checks to mail, collect or deposit. Bringing ACH and RTP to real estate streamlines the homebuying process and provides greater visibility into the status of each transaction.
The paymints.io platform is uniquely different with its bi-directional, pending push button technology, which allows title companies and settlement agents to disburse payments to all relevant individuals and companies. At the time of settlement, vendor payments to real estate agents, mortgage brokers, real estate attorneys, inspectors and municipalities can all be initiated within 90 seconds and securely sent over the ACH Network.
Reducing Real Estate Transaction Fraud
As a real estate transaction coordinator at a real estate brokerage and title company, sending and receiving funds can now be done safely and securely online. No need to print or mail paper checks or share routing or account numbers.
ACH transfers greatly reduce fraud, ensuring proper security checks and authorization are met before an account is deducted. An ACH return can be referred to as an “ACH dispute” or “ACH chargeback.” And while those terms may seem synonymous, they are very different.
“Disputes” and “chargebacks” are terms used in the credit card space and imply that there is a third-party arbiter looking at evidence to determine a fair outcome. That does not happen during the ACH return process. With nearly 70 ACH return codes, an ACH transaction is not “disputed” nor “charged back,” it is simply returned.
As ACH transfers become a more common form of payment for real estate transactions over wires and checks, the speed of the transaction is still a topic of conversation in the real estate and title industry. As a real estate transaction coordinator, we aim to provide traceability and transparency in real estate payments while still moving money quickly.
paymints.io by Karson Foley
Real-Time Real Estate Transactions
The shift in demand for traceability and speed is why Real-Time Payments (RTP) are becoming so important. With Dwolla’s Real-Time Payment solution, we’re able to create operational efficiencies, as well as a stress-free and streamlined consumer experience.
RTP allows escrow holders to send and receive funds transfers in real time, 24/7/365. This allows a homeowner to accept an offer on the weekend and receive their earnest money on the same day. No more waiting for payments!
Using Dwolla’s platform to initiate a payment to an RTP-enabled bank creates a near instant bank transfer.
Real-time payments are the most advanced payment method for paymints.io to further its mission of becoming the leading transaction coordinator to replace paper checks and reduce wire fraud among real estate transactions.