By: Caitlin,

There are a few unique features about Dwolla’s bank transfer API that make it a good option for companies looking to customize a payment solution to fit their optimal funds flow. One of these features we’ll talk about today is the ability to hold a balance.

How does the Balance functionality work?

Dwolla’s payment solution allows you to maintain a “Balance”. This “Balance,” or stored value function, is essentially a Dwolla account that is used to maintain and manage information regarding your ownership of funds held in a pooled holding account at one of our financial institution partners until you’re ready to disburse to the end recipientAs a verified customer, you can link a bank account and transmit funds from that bank account and hold them in your Balance.

If you’re a White Label partner, your users can also make use of this balance function to hold funds—while you customize how the balance is displayed in the application to suit your user experience.

Where exactly are the funds in the Balance held?

Dwolla facilitates the flow of funds via the ACH network, and the funds held in the Balance are held in pooled holding accounts at Veridian Credit Union and BBVA Compass Bank, our Financial Institution partners.

Examples of how to use Balances

1. Mass payouts: As a partner, you can hold funds in your Balance until you are ready to disburse them. Once you’re ready, you can initiate mass payouts to your user-base. Once you initiate a transfer of funds from your Balance, standard transfer time to bank accounts is 1-2 business days. 

Flow-of-Funds copy

2. Wallet functionality: As a partner, your verified users can “store” funds in their Balances. For example, a savings app may customize the Balance functionality within its app as a “piggy bank,” and users of that app can link and verify their bank account to then initiate transfers into their “piggy bank.” These users will be holding funds in their Balances linked directly to their account, from which they’ll be able to initiate withdrawals.


We’ve seen the benefits of end users being able to have “stored value” with several of our partners—you can explore some use cases here.

Dwolla’s White Label bank transfer API offers a robust and flexible network for you to leverage within your own application or platform. From equity investment platforms to landlord management software, we can be the rails powering your payments infrastructure while your brand sits on top.

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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.