There are three methods of bank creation and verification in the Dwolla API.

  • Microdeposits
  • Instant Account Verifications via Dwolla.js
  • Plaid integration

Let's take a glance at each.

Microdeposits

Microdeposits are a preferred method to verify a Customer's bank funding source if they have a check on hand to refer to, or if they do not have online bank credentials to instantly verify their bank.
There are three steps to creating and verifying a bank with microdeposits.

  • Step 1 - Add the bank via account number and routing number
  • Step 2 - Initiate microdeposits to the bank
  • Step 3 - Verify the microdeposit amounts

Instant Account Verification via Dwolla.js

Instant Account Verification (IAV) gives you the ability to add and verify a Customer’s bank account in a matter of seconds, which is much faster than the multiple days required for micro-deposits to transfer and then be verified by the Customer.
Utilizing Dwolla.js, you can create and verify a bank funding source without having sensitive Customer banking information ever hit your servers.

Plaid Link Integration

Much like Instant Account Verification (IAV), the Plaid Link integration allows you to verify a Customer’s bank funding source in a matter of seconds.
Using Plaid Link, your Customers will authenticate information with their financial institution through Plaid, and select the bank or credit union account they wish to use for initiating bank transfers. Behind the scenes, you’ll receive a unique token from Plaid that will be used to create a funding source for a Customer via the Dwolla API. 

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