Similar to the average bank, “next day” for Dwolla will probably still mean two business days once all the processes are factored in, but the transaction time should/ be roughly three times faster than normal. The service applies to both deposits and withdrawals.
Dwolla operates with a $0.25 fee on transactions larger than $10. The startup managed to undercut existing banking fees, which typically cost around 3 percent, by going around existing infrastructure and building its own payment network. Dwolla CEO Ben Milne describes the process as “replacing plastic cards with the Internet.”
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