1) How it works: Dwolla works by leveraging the Automated Clearing House (ACH) system. But to do that, you have to link your Dwolla account to a checking accoun

1) How it works: Dwolla works by leveraging the Automated Clearing House (ACH) system. But to do that, you have to link your Dwolla account to a checking account. The ACH system is not the credit card system, so it can avoid the requirement to pay a toll, and thus can avoid passing on those fees to their users. 2) How is it different? Dwolla doesn't charge a percentage of the transaction. They only charge $0.25. And now $0.00 for transactions under $10.