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Dwolla launches Dwolla Credit – Real-time payments without interchange

blog.dwolla.com

11–20 of 33 posts

Re: Dwolla launches Dwolla Credit – Real-time payments without interchange

#11
post #9

>We’re starting with eCommerce and then rolling out to other retailers. Isn't it illegal to charge the customer before the goods are shipped. Do they handle pre-auth and settlement?

No it's not illegal to charge before shipping, why would you ship something out that costs $$$ when you run the risk that the card will not be good?

Re: Dwolla launches Dwolla Credit – Real-time payments without interchange

#13
post #4

How are chargebacks handled in this system?

Chargebacks don't exist in the Dwolla universe. Its not a credit card.

We have disputes though.

You can read about them here: http://help.dwolla.com/customer/portal/articles/1203299-how-...

and here: http://help.dwolla.com/customer/portal/articles/87923-file-a...

Re: Dwolla launches Dwolla Credit – Real-time payments without interchange

#14
post #11
post #9

>We’re starting with eCommerce and then rolling out to other retailers. Isn't it illegal to charge the customer before the goods are shipped. Do they handle pre-auth and settlement?

No it's not illegal to charge before shipping, why would you ship something out that costs $$$ when you run the risk that the card will not be good?

That's what an auth step is, like nahname mentioned. Many (most?) credit card charges come in two parts: the auth, which appears on your statement and kind of verifies that your payment won't be rejected, and the settlement, which actually finalizes the charge. When you buy something from a large online retailer like amazon, they immediately do an auth, and then only settle when the item is shipped. At least I think that's how it works.

Re: Dwolla launches Dwolla Credit – Real-time payments without interchange

#15
post #9

>We’re starting with eCommerce and then rolling out to other retailers. Isn't it illegal to charge the customer before the goods are shipped. Do they handle pre-auth and settlement?

It's against card brand rules, most definitely not illegal.

Re: Dwolla launches Dwolla Credit – Real-time payments without interchange

#16

The post is light on details, unfortunately. As far as I can tell, it's more similar to BillMeLater than it is to a credit card. The only other information I could find on Dwolla Credit is a support FAQ[1]. Interestingly, the credit provider is Comenity Capital Bank, which is also behind BillMeLater[2]. I still don't completely understand the difference in models between something like Dwolla Credit (or BillMeLater)…

about your question: admittedly, part of it might be rent-seeking (which would be systemic; I make no attempts at pretending to know everything about the banking system but I wouldnt be surprised). I recall Ben goes into the "why" a bit more in detail somewhere in the early part of his interview with TWiST: http://thisweekinstartups.com/thisweekin-startups/dwolla-ben...

Re: Dwolla launches Dwolla Credit – Real-time payments without interchange

#18
post #17

When Dwolla goes international this will get interesting. Until then a lot of us just shrug. That's not intended as an insult -- I just wish they'd go global already. Signed, A New Zealander.

Well... I still look upon it with interest (although of course with not as much interest if it were here!).

Signed, A Singaporean!

Re: Dwolla launches Dwolla Credit – Real-time payments without interchange

#20
post #17

When Dwolla goes international this will get interesting. Until then a lot of us just shrug. That's not intended as an insult -- I just wish they'd go global already. Signed, A New Zealander.

The deliberate balkanization of all finance in fiat money will backfire big time. The dinosaurs are simply herding everybody in the direction of bitcoin, and there will be no turning back ;-)
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