Dwolla: Cheap flat-fee cash transfers for all of us.

Nov 22, 2011

I just discovered a great new online peer-to-peer cash option introduced nationally last year named Dwolla. It’s a little like using cash or a check, but online. Dwolla is the work of Des Moines, Iowa entrepreneur Ben Milne. It can be used by anyone with internet access and a free Dwolla account. The best thing about it might be the cost—a flat $0.25 fee per transaction incurred by the merchant. That’s it! No other fees, interests rates, percentages, nothing. dwollalogo-300x94.png

You can pay with your smartphone, iPad, or computer. The list of participating merchants is growing daily, and you can locate them using their “Dwolla Spots” on your smartphone.

You can send money to friends and loved ones for less than the cost of a postage stamp. Personal transactions have a limit of $5000 and business transactions, $10,000. The money transfers immediately from one Dwolla account to another. The only delay is 2 to 5 business days when adding funds from a bank account, only due to the Federal Reserve’s ACH network.

There are absolutely no monthly fees, minimum balances. You can send and attach invoices free, too. Dwolla is currently available only in the United States.

The Dwolla service was launched across the U.S. on December 1, 2010 and by June 2011 it was reaching transaction volumes of 1 million dollars a week. One month later it was processing 1 million a day, and continues to grow from there. I would imagine the credit card companies and PayPal® are taking a dim view of Dwolla. I think it’s great, though, and signed up right away for use with my business. I never liked the idea of paying out 30-40 dollars to the plastic people to get paid on a one thousand dollar invoice or sale.

My bet is that Dwolla is really going to take off.

Authorization fee—$0
Statement fee—$0
Monthly minimum fee—$0
Batch fee—$0
Annual fee—$0
Sticking it to “the man”—PRICELESS!



Great—no really great news for businesses doing small transactions: Dwolla has announced that ALL SMALL BUSINESS TRANSACTIONS UNDER $10 ARE NOW FREE!

This is HUGE.

Wait ’til people catch on to this and what it can mean to their bottom line when it comes to people paying for their cup of coffee and a bagel, small donations, short cab rides, small purchases, and so on.

Thank you Dwolla for your big part in helping turn things around for American small businesses.

read more about it HERE