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Business Customer Verification

This article will walk through the identity verification process for business verified Customers within the Dwolla API.

The basics

A business verified Customer represents a business that intends to send or receive funds on your platform. In any transaction, at least one party—either the sender or the receiver—must complete the identity verification process as outlined in this article.

Key Terminology

  • Account Admin - The representative creating the business verified Customer on behalf of the business and Controller.
  • Controller - Any natural individual who holds significant responsibilities to control, manage, or direct a company or other corporate entity (i.e. CEO, CFO, General Partner, President, etc). A company may have more than one controller, but only one controller’s information must be collected.
  • Beneficial owner - Any natural person who, directly or indirectly, owns 25% or more of the equity interests of the company.
  • Beneficial ownership certification - An action taken by the Account Admin to confirm that the information provided is correct.
  • EIN (Employer Identification Number) - A unique identification number that is assigned to a business entity so that they can easily be identified by the Internal Revenue Service.

Business Verified Customer Quick Guide

My Customer’s business structureWill sign up in Dwolla asAre they required to add beneficial owners?Are they required to add certify beneficial ownership?
Sole proprietorshipssoleProprietorshipNo (exempt)No (exempt)
Unincorporated associationsoleProprietorshipNo (exempt)No (exempt)
TrustsoleProprietorshipNo (exempt)No (exempt)
CorporationcorporationYes (if owns 25% or more)Yes
Publicly traded corporationscorporationNo (exempt)Yes
Non-profitscorporation or llcNo (exempt)Yes
LLCsllcYes (if owns 25% or more)Yes
Partnerships, LP’s, LLP’spartnershipYes (if owns 25% or more)Yes

Steps for onboarding a Business verified Customer

Reference the steps below for guidance on getting your business verified Customer in a transaction-eligible state.

  1. Creating business verified Customer
    • Create the Customer record
    • Check the status of the business and Controller
  2. Handling business verified Customer statuses
    • Handle retry, document, and suspended statuses
  3. Adding beneficial owner(s)
    • Determine if you need to add a beneficial owner to your Customer
    • Add a beneficial owner(s) to the Customer
    • Handle incomplete and document statuses
  4. Certifying beneficial owner(s) information
    • Determine if you need to certify beneficial ownership for your Customer
    • Certify beneficial ownership
  5. Frequently asked questions
    • A reference article to answer common questions about business verified Customers

Next steps:


Status
Production: Operational

Financial institutions play an important role in the Dwolla network.

Dwolla, Inc. is an agent of Veridian Credit Union and all funds associated with your account in our network are held in one or more pooled accounts at Veridian Credit Union. These funds 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.