Within Dwolla, the sending party must always have a verified funding source. Since your Customer is the one sending funds, they will need to both add and verify their bank funding source before being eligible to send funds.
The destination party, or the party receiving funds, does not need to have a verified funding source to receive these funds.
There are multiple ways of adding a bank to a Customer with the Dwolla API. A simplified table below outlines the similarities and differences of each method.
|Bank Addition Method||Will the bank be verified?||Required Information|
|API - Account & Routing Number||Optional - With Microdeposits||Bank Account and Routing Number|
|Dwolla.js||Optional - With Microdeposits||Bank Account and Routing Number|
|Dwolla + Plaid integration||Yes||Online banking Credentials|
|Dwolla + Secure Exchange solution||Yes||Online banking credentials|
|Other Approved Third-party Provider||Yes||Variable|
In this step, we will create and attach a verified funding source to your Customer, which will be done using Plaid Link, a third-party bank verification provider. This method will give your Customers the ability to add and verify their bank account in a matter of seconds by authenticating using their online banking credentials.
Once your Customer reaches the page in your application to add a bank account, you will first use Plaid Link to authenticate the user's bank account, exchange the
public_token for a
processor_token, and then send the
processor_token to Dwolla to create the funding source.
To integrate Dwolla with Plaid, we recommend checking out our Add a Bank via Dwolla + Plaid Integration guide. Additionally, if you would like to see a working example that verifies a bank via Plaid Link (using Next.js/React) and attaches it as a verified funding source to a Dwolla Customer, please check out our dwolla-plaid-funding-source integration example on our GitHub profile.
If you have an active webhook subscription, you should receive both the
customer_funding_source_verified webhook immediately following the request to Dwolla to add a funding source using a Plaid
Use sandbox environment to test API requests.
All funds transfers made using the Dwolla Platform are performed by a financial institution partner, and any funds held in a Dwolla Balance are held by a financial institution partner. Learn more about our financial institution partners.