A Virtual Account Number (VAN) on the Dwolla Platform is a unique account and routing number generated to enable bank transfers with the user’s Dwolla Balance. Whether you make and receive your own payments or facilitate payments between parties, Dwolla’s Virtual Account Number feature allows a company to transfer funds through the Dwolla system with parties who never have to create an account on the Dwolla Platform.

With VANs, you can —

  • Create, organize and streamline complex funds flows.
  • Make payments from multiple sources, such as payroll and mobile wallets, not just bank accounts.
  • Simplify reconciliation by tracking transactions and keeping data discrete.
  • Enhance security by disabling VANs that appear compromised.

How Dwolla’s Virtual Account Numbers Work

Virtual Account Numbers Use Cases

Real Estate & Proptech

A “neobank for renters” offers a Virtual Account to renters, so they can split their payments into 2-4 installments each month without accruing interest.

Dwolla’s Virtual Account Number enables the tenant to make rent payments using the Virtual Account Number information in the landlord’s property management system.

How VANs Work

  1. Real Estate & Proptech VANs funds flowEnd user/tenant attaches a bank account to the app.
  2. Proptech creates a VAN for the end user.
  3. End user enters their VAN into the landlord’s property management system to pay rent.
  4. End user transfers funds to their VAN.

When the end user has enough funds in their Virtual Account, they can pay rent through the landlord’s system. The VAN is dissolved when the end user no longer uses the app.

“Our users were looking for more flexibility in their rent payments and collections. Dwolla’s Virtual Account Numbers gave us a way to easily and affordably manage payments for a large client base. Our users can now align their income schedules with their rent payments in a simple and automated way. For us, reconciliation is simpler because we can organize transactions by creating a VAN for each user.”
CEO of Rent Payment App

Investment Platforms

A fintech platform for buying and selling equity shares in collectibles uses a third-party service for its investing service. They use Dwolla’s Virtual Account Numbers to transfer funds to the third party for investment. VANs provide a quick and seamless way for their end users to get money in and out of their Dwolla Balance.

VANs allow this fintech to grow its business and optimize data. Before using Dwolla VANs, the company had to use intermediary accounts to transfer funds between its users’ bank accounts and the third-party investing service. Without the need for an intermediary account, end users can add funds to their balance and ultimately fund their investments quicker using a virtual account number.

How VANs Work

Investment Platforms Vans Fund Flows

  1. Fintech creates a VAN for the investment.
  2. Fintech provides the VAN to the third-party investing service.
  3. Third-party service uses the VAN to debit the account via ACH and pull funds into their system.

The fintech’s end users are not involved in this backend process, ensuring a seamless experience for consumers using the app.

Charitable Giving

A charitable giving fintech allows donors to grow their money tax-free in a donor-advised fund and then contribute to the charities of their choice. The fintech assigns each funding source a VAN by payment type and provides that information to the third-party investing service that manages the funds.

This functionality allows the fintech’s end users to invest seamlessly in donor-advised funds and maximize their charitable contributions.

How VANs Work

Charitable Giving Vans Funds Flow graphic

  1. Fintech assigns a VAN to each payment type and provides that information to the third-party investing service.
  2. Third-party investing service uses the VANs to pull the investment contributions into the donor-advised funds.
  3. As the investment grows, an investor can choose to donate from the donor-advised funds to the charities of their choice.

Could your business benefit from the opportunities created by Dwolla’s Virtual Account Numbers? Need to know more about account-to-account payments first? Contact our team to walk through your use case.

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