News Feed Item

Dwolla Reveals Cost of Checks for Small Businesses at $13.1 Billion, Speeds Up Bank Transfer Times to Next Day

Payment Network Cuts Wait-Time in Half to Expedite the Death of Checks, Improve Cash Flow and Get Paid Faster

DES MOINES, IA -- (Marketwired) -- 05/29/14 -- Dwolla, the payment network that allows anyone in the United States connected to the Internet to send, request and collect money, today revealed key numbers and trends related to the cost of writing and issuing checks for small and medium-sized businesses (SMBs). The findings, which combine industry and survey data, suggest that 66% of the nation's SMBs spend $858 a year on maintaining paper check operations, including labor, supplies, maintenance, and wait-times. To entice SMBs to replace check operations, Dwolla has launched Next Day Transfers, which improves bank transfer speeds in and out of the network to as little as two to three business days, and a Business Payments Toolkit, which helps small businesses simply and easily convert to digital.

"Small businesses are writing a $13 billion check each year for a paper-based process that does nothing but hurt their bottom-line and, arguably, keep the United States Postal Service afloat," said Anne Driscoll, Vice President of Marketing at Dwolla. "Issuing paper checks is an old and manual process that clouds a business's ability to make real-time decisions and get paid faster, but existing platforms have been too expensive and complicated to set up and integrate for the small or non-tech businesses."

In a simple, yet compelling infographic, the payment network profiles today's average business owner to give us insight into the real cost of checks:

  • Generation tech: Men (56%) and women (60%) under 30 prefer digital payment options; while those over 30 prefer writing checks (men 66%, women 59%).
  • Lost investments: Nearly 18% of people spend $100 or more on the materials needed to write and issue checks. What could you spend in a year if you bypassed writing checks?
  • Maintenance request: 17% of people spend at least 5 hours or more each month to maintain check operations.
  • For women, family comes first: 25% of women would rather spend time with their family instead of writing and issuing checks; men would spend more time closing deals (30%).

Also Introducing, New Faster Payments with Next Day Transfers
Delivering on its promise to bring faster access of funds to members, Dwolla now allows transfers in and out of its network in as little as two business days.

  • Three-times faster deposits to Dwolla: Businesses, nonprofits, and government accounts may now qualify for access to Next Day Transfers, providing nearly 3x faster funds from a bank account to Dwolla. Apply at http://nextday.dwolla.com.
  • Next Day withdrawals to banks: The payment network has also improved bank transfer out of the network for all of its users, allowing individuals, marketplace sellers, and business vendors to move funds to their bank or credit union, as soon as next day.
  • Dwolla to Dwolla: Still instant.

"The automated clearing house (ACH) plays a critical role in processing tens of trillions of dollars to settle payments made via checks, debit cards, and even credit card payments, but it's often seen as slower than alternatives and harder for SMBs and consumers to use daily," said Ben Milne, CEO and founder of Dwolla. "Dwolla helps anyone tap into ACH's strengths, like ubiquity and low-cost, while providing easy-to-use tools, the same next day speed the biggest businesses get access to, and new security measures, like tokenization, to help modernize ACH."

Toolkit: Replace the check
Unlike ACH or Direct Deposit processors, which can be restrictive, confusing, and cost-prohibitive for many SMBs, Dwolla provides organizations and individuals with free turnkey solutions to send and collect money from existing checking accounts or Dwolla balances. To help small businesses convert to digital, the company has bundled its benefits and tools in its new Business Payments Toolkit.

  • Cheaper than a stamp: No setup fees or monthly subscriptions, just 25¢ per transaction or free for transactions $10 or less.
  • Replace the checkbook with a spreadsheet or an API: Distribute thousands of payments in seconds, by simply uploading a CSV list of emails and payment amounts to the free Dwolla MassPay tool or get technical and customize a solution with the MassPay API.
  • Save a trip to the bank: Use Automatic Withdrawal to send funds to your bank as soon as they hit your Dwolla account, or keep a balance and make real-time payments within the network.
  • Retire the mailbox, the postman: Create free custom web pages or buttons to collect or request payments from anyone with a checkbook, no technical expertise or trips to the mailbox required.
  • Protect your bank information: Unlike a paper check, Dwolla never reveals bank account and routing numbers to recipients.
  • A checkbook that talks: Live support via phone and email with friendly Iowans who actually want to help you.

About the Dwolla Survey
Dwolla commissioned SurveyMonkey to conduct an online survey of 700 SMB business decision makers in the U.S. The survey was conducted between April 23 and April 30, 2014.

About Dwolla
Dwolla allows anything connected to the Internet to move money as quickly, safely, and at the lowest cost possible. Powered by an accessible web-based platform and its "free or 25 cent flat-fee" per transaction pricing model, the software uses the Internet to securely link mobile phones, computers, social communities, and even physical locations to create a safe network that bypasses traditional card and check systems. This allows friends, families, businesses, even governments to easily send and receive digital payments with one another, like cash, but with easy to use websites, apps, and tools and without the fees and constraints of traditional debit and credit cards.

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2604314

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
SYS-CON Events announced today that Impiger Technologies will exhibit in Booth #109 at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Impiger Technologies is a world-class, enterprise software product engineering company specializing in Mobile Application Development, Cloud Applications, Microsoft Technology Solutions, Web Technology and Telecom Services. Impiger Technologies helps enterprises improve busi...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

SYS-CON Events announced today that Cemware will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Use MATLAB functions by just visiting website mathfreeon.com. MATLAB compatible, freely usable, online platform services. As of October 2016, 80,000 users from 180 countries are enjoying our platform service.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Digitization is driving a fundamental change in society that is transforming the way businesses work with their customers, their supply chains and their people. Digital transformation leverages DevOps best practices, such as Agile Parallel Development, Continuous Delivery and Agile Operations to capitalize on opportunities and create competitive differentiation in the application economy. However, information security has been notably absent from the DevOps movement. Speed doesn’t have to negat...
SYS-CON Events announced today that eCube Systems, the leading provider of modern development tools and best practices for Continuous Integration on OpenVMS, will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. eCube Systems offers a family of middleware products and development tools that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...