ACH Becomes Outdated As Dwolla’s FiSync System Goes Live
Dwolla has just launched FiSync, a real-time money transfer system that could replace the Automated Clearing House (ACH) system. ACH has been around for 40 years. ACH lets you move money from one bank to another, but it takes a few days to complete. FiSync is able to offer banks and credit unions to set up a real-time alternative.
Dwolla first announced FiSync would be integrated with banks back in March. The original plan was to make Veridian Credit Union’s FiSync system to go live on June 4th. It went live on June 16th. Veridian’s integration will switch on real-time transactions for over 160,000 banking customers. The system is also secure because it has a verification process that allows banks to protect clients by requiring that other financial institutions verify information prior to engaging in transactions. Banks can also hold the deposits.
FiSync even works on holidays and weekends. Below is a list of benefits that FiSync has as outlined by Dwolla:
- Free real-time bank transfers: FiSync members can move funds to and from their bank accounts to the Dwolla platform, friends or businesses for no cost and without the traditional 2 to 3 day wait times.
- Improved security and safety: With PINs, passwords, email notifications and other authentication processes, FiSync adds new layers of security not embedded in traditional bank transfer networks.
- Harmless transactions: Removing the sensitive financial information, or “data exhaust,” from its transactions, Dwolla users and merchants exchange money without many of the liabilities associated with card networks (e.g. card theft, data breaches, etc.).
- Business friendly: Free or 25 cents per transaction, as well as near instant liquidity allows online, retail or business to business merchants to stay competitive.
- Mobile payments: Dwolla users are able to purchase goods and services or share money with their friends via the network’s Android and Apple applications. (Note: A new business using Dwolla for electronic cash payments is NY’s GetTaxi, for example)
- Pay friends or family: Dwolla users securely send money to Facebook friends, Twitter followers, LinkedIn connections, SM-enabled phones, nearby devices and email addresses.
- Free distribution and integration: FiSync is freely available to financial institutions and service providers at fisync.dwolla.com. Interbank transactions are comparable to traditional ACH costs.
Veridian is the first institution to use Dwolla’s FiSync system. Others will be coming in the next few months.