Pfft. I have had scant use for Dwolla for some time, and don't imagine that will change much in the future. Those that were around when they wreaked havoc by reversing payments of thousands upon thousands to TradeHill might have an inkling why.
I recently had an interesting email exchange with Dwolla, prompted by their teaser email to me. It is presented here in reverse chronological email threaded order.
Since my last email to them, they have not replied with answers to my direct questions. I wonder why?
Me
OCT 03, 2013
HI, anonymous support person. Once again, I do thank you for the continued dialogue.
Thank you for providing the quote of what your _current_ policy upon reversals (which I had previously been terming chargebacks - sorry for the confusion). It does appear to be these 'reversals' of which I am speaking.
I understand that your current policy makes allowance for such reversals. However, it would appear that it was not always so.
On what date was this policy enacted? On what date was it divulged to customers? On what date did Dwolla stop saying that your service allowed merchants to "rid themselves of chargeback fees"?
The evidence to which I am currently privy suggests that this policy was drafted and divulged _after_ the TradeHill reversal.
See:
http://bitcoinmoney.com/post/8067352221/dwolla-allows-chargebacksamongst other sources.
Thanks -
Dwolla Support
OCT 03, 2013
,
Thank you for your email and clarification. I believe the explanation you are looking for regarding Dwolla's reversal policy can be found in our terms of service www.dwolla.com/tos, under section 13 (Reversals) stating:
The recipient of funds may be subject to reversals occurring within the User Account if claims are made by the sending party or by the sending party's Financial Institution.
You understand and agree that:
If there is a reversal of a payment to You, You will be liable to the Financial Institution Partner for the full amount of the reversed payment plus a fee in the amount of $15 ("Reversal fee"). The reversed payment plus the reversal fee is the "Reversal Liability."
Reversals are debited by the Financial Institution Partner in the Veridian Holding Account and will be reflected in Your Dwolla User Account.
If You do not have a balance in Your Dwolla User Account that is sufficient to cover Your Reversal Liability, the remaining balance in Your Dwolla User Account (if any) will be used to cover the Reversal Liability, and You authorize Us, to take any of the following actions:
Debit Your attached Bank Account in the amount of the unpaid portion of the Reversal Liability;
Suspend Your User Account and require You to take immediate actions to repay the unpaid portion of the Reversal Liability; and/or
Engage in collection efforts to recover the unpaid portion of the Reversal Liability.
I hope this is the answer you were looking for in regards to our policy on reversals and what may have occurred in regards to a payment being reversed through the sending parties financial institution.
If there is anything else we can provide for you please let us know, and we would be more than happy to provide additional information regarding this matter.
Have a wonderful day.
Sincerely,
Dwolla Support
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Me
OCT 03, 2013
Hi, anonymous support person. Thanks for the continued dialogue. But let's not be coy here. I think, should you have been at Dwolla any significant time, you'd know exactly of what I am speaking.
The allegation made by TradeHill is that you rescinded a large payment to them after first transmitting the payment. This is what I am referring to as a 'chargeback'. I understand that the backend payment networks allow a payer to claw back a payment already made to a payee. This is what is alleged to have occurred. I don't recall the details, but my impression is that several dozen thousand dollars involved.
Here's a nice summation:
http://www.americanbanker.com/issues/177_45/tradehill-dwolla-bitcoin-exchange-digital-currency-lawsuit-1047273-1.htmlI note that in the article, Lampe refuses to meaningfully address the question.
This is what I mean when I say I "never heard an explanation" about Dwolla's conduct in this event. Who shall address this issue, and provide me with any rationale for what appears to me -- at least on the surface -- as a theft of other's property?
Dwolla Support
OCT 02, 2013
,
Thank you for your email. I would be more than happy to provide an explanation for you. Would you be able to provide more details surrounding your question? What are you referring to in regards to "charging back against accounts."
Thank you for your clarification, and we look forward to answering any additional questions you may have.
Me
OCT 01, 2013
Original message
You sent an email asking bout my recent non-use of my account.
Quite frankly, I am somewhat reticent to use your service due to the TradeHill fiasco some months back. I've never heard an explanation of how you might have charged back against their account, given your then-advertised policy of no chargebacks.
Does anyone care to explain this to me?
Dear
,
It looks like there has not been any activity in your account over the past month.
We've been busy building some really exciting things and wanted to reach out to see if there is anything we can do to help you have a great experience moving money!
If there is anything we can assist with, please visit our FAQ section or contact our customer support team by email: [email protected].
Thank you for being a Dwolla member.
Sincerely,
The Dwolla Team
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edit: added one more close quote above, to put the following in the proper contextMy guess is that they have not answered my last round of direct questions, as it shows them in a very poor light. I have my own opinion of them based upon this event, which dealt a severe blow to an honest exchange that could have possibly given Gox a contest for the title of most meaningful exchange.