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Does anyone know how hard it is to spin up a service like this on their own? Given they use relatively cheap ACH transfers, wouldn't you just need to find a ban
by nchuhoai 15y ago
Does anyone know how hard it is to spin up a service like this on their own? Given they use relatively cheap ACH transfers, wouldn't you just need to find a bank that manages the money for you, and the rest is just doing a bunch of those ACH transfers?
Also, I'm not very familiar with US banking system, but it seems as Dwolla can withdraw funds from your account after you "verified" the account. It's a pretty common thing in Germany, but I have never heard of that in the US. Can any business do it or is it a Dwolla-specific thing?
- thinkcomp 15y agoI run FaceCash, which is based on accounting software I already had started writing ten years prior to starting in with payments. It's pretty difficult. Between the technology, regulatory and accounting hurdles, it's not a business for the faint of heart.
- wiredfool 15y agoTechnically, it's not bad. Practically, you've got to groom relationships with banks, convince them of your risk management process, get a decent rate for transfers, and a whole host of other details. It can be done, but I'm not sure it can be done profitably for $.25 a transaction to the general public, especially with the risk management and the potential for returns coming back after 6 months.