Dwolla Direct Terms of Service

Last Updated: August 20, 2015

The Dwolla Direct Terms of Service (“Terms”) are a legally binding agreement between you and Dwolla, Inc. (“Dwolla”) and apply to your use of a Dwolla Direct account (“Direct Account”) and any Dwolla products and services that you access using a Direct Account (together with a Direct Account, the “Direct Services”). By accessing or using the Direct Services, you accept and agree to be bound by these Terms. If you do not agree to these Terms, you must immediately stop using the Direct Services.

These Terms and the Dwolla Privacy Policy apply to your use of the Direct Services. We may amend these Terms at any time by posting a revised version on dwolla.com or any other website we maintain for the purposes of providing the Direct Services. Amended Terms are effective at the time we post them and your continued use of the Direct Services constitute your acceptance of any amended Terms. We may provide you with notice regarding upcoming Terms changes by email. “You” or “your” means any person or entity using the Direct Services. “Dwolla”, “we”, or “our” refer collectively to Dwolla, Inc.

  1. Using Dwolla Direct.
    1. Direct Account. A Direct Account allows you to store your bank or credit union account information with Dwolla to pay third parties, such as sellers, without re-entering that information or sharing it with third parties. A Direct Account also allows you to receive funds directly into your linked bank or credit union account if the funds are sent from a Dwolla Account, as such accounts are defined in the Dwolla Terms of Service. Direct Accounts and Dwolla Accounts are different types of accounts which are subject to their own terms of service. A Direct Account cannot be used to hold or store money and Dwolla does not hold or store any of your funds. Dwolla does not have control of, or liability for, any goods or services that you pay for using the Direct Services. Dwolla does not guarantee the identity of any user, such as a seller, and does not guarantee that a transaction will be completed. An email address attached to a Direct Account cannot be attached to a Dwolla Account.
    2. Your privacy. Your privacy is very important to Dwolla. When you register for a Direct Account, you confirm that you have read and accepted the Dwolla Privacy Policy.
    3. Accuracy of information. You agree to provide true and accurate information to Dwolla when you create your Direct Account. You also agree to update this information to keep it true and accurate at all times.
    4. Authentication. You may be required to provide additional information or documentation to allow Dwolla to verify your identity and/or your account information. Dwolla may also verify your information against third party databases or other sources and you authorize Dwolla to make such inquiries.
    5. Password security. You are responsible for keeping your Direct Account login information and password secure. If you share your login credentials with another person, you are responsible for all activity they conduct using your Direct Account, regardless of whether or not you authorized their activity. Dwolla will never ask you for your Direct Account credentials.
    6. Authorization to debit your linked bank or credit union account. In order to use the Direct Services, you must link an account from a bank or credit union chartered in the United States, to your Direct Account. When you make a payment using the Direct Services, you are authorizing Dwolla to initiate an electronic transfer from your linked bank or credit union account in the amount you specify. You are solely responsible for complying with any terms set by your bank or credit union with respect to your bank or credit union account, including any fee terms, such as non-sufficient fund or overdraft fee terms. If you receive a payment via the Direct Services or are entitled to a reversal, refund, or other adjustment associated with a payment you made using the Direct Services, you also authorize a credit to your linked bank or credit union account to complete that transaction.
    7. Automated Clearing House (“ACH”) clearing times. When you make or receive a payment using the Direct Services, the payment is funded or received, as applicable, by your linked bank or credit union account and you acknowledge that normal ACH clearing times will apply. If you pay for a purchase using the Direct Services, it may take 3 to 4 business days for the recipient, such as a seller, to receive the funds. The recipient may wait until they have received the funds before fulfilling your purchase.
    8. No endorsement of products. Dwolla does not provide any endorsements or guarantees for any individual or entity using the Dwolla system, nor any third party offers, goods or services featured on Dwolla websites. Information regarding third party offers, goods, and services is provided on Dwolla websites for informational purposes only, and may not be true, accurate, or reliable.
  2. Consent to receive electronic Communications.
    1. Communications. By opening a Direct Account and using the Direct Services, you consent to receive all Communications from Dwolla electronically and you confirm that you can access, receive and retain such Communications. “Communications” means all communications, terms, disclosures, and notices that Dwolla provides to you in connection with your Direct Account and your use of the Direct Services. Dwolla provides Communications to you by posting them on dwolla.com or by emailing them to you at the email address associated with your Direct Account.
    2. Notices to you. A Communication will be considered to be received by you within 24 hours after the time we post it to our website or email it to you.
    3. Hardware and software requirements. In order to access and retain Communications electronically, you need the following hardware and software:
      1. A computer, laptop, smartphone, or other device, that is Internet-enabled;
      2. A valid email account associated with your Direct Account;
      3. A web browser which includes 128-bit encryption, such as current versions of Chrome, Internet Explorer, Firefox or Safari, with cookies enabled; and
      4. Data storage to save Communications electronically or an installed printer to print them.
    4. Keeping your contact information updated. You must keep your email address updated in order to receive Communications from Dwolla electronically. To update the email address associated with your Direct Account, please contact us as set out in Section 2.7.
    5. Requesting paper copies. You may request a paper copy of a Communication that we provided to you electronically by contacting us as set out in Section 2.7. You will be required to provide a mailing address to receive the paper copy. Dwolla may charge you a fee of $5.00 for each paper copy of a Communication sent to you.
    6. Withdrawing consent. You may withdraw your consent to receive Communications electronically by contacting us as set out in Section 2.7. If you withdraw your consent, Dwolla may prohibit you from using the Direct Services and may close your Direct Account.
    7. How to contact us regarding electronic Communications. If you have any questions regarding our policy on electronic Communications, please email us at [email protected] or call us at 1-888-289-8744.
  3. Fees
    1. Dwolla Fee Removal. As of June 4, 2015, Dwolla will no longer charge the $0.25 Dwolla Fee for any transactions.
    2. Facilitator fee. The recipient, such as a seller, or a third party facilitating your payment transaction (“Facilitator”) may charge you additional service fees based on their terms and conditions. We recommend that you review Facilitator fee terms before completing your payment.
  4. Limitations and Fraud.
    1. Transaction limits. Dwolla may establish individual or aggregate transaction limits on the dollar amount or number of transactions you may complete using the Direct Services during any time period. Dwolla may change such limits at any time, in our sole discretion, without notice to you.
    2. Transaction decline. Dwolla reserves the right to decline, delay, cancel, or reverse any Direct Services transaction for any reason, in our sole discretion. Dwolla will provide notice to you upon taking such action.
    3. Reversals and authorization to recover amounts due. Any payment that you receive may be reversed if: (a) the sender requests a reversal of the payment, (b) the sender’s bank or credit union requests a reversal of the payment, or (c) Dwolla decides a Dispute against you (each a “Reversal”). You are liable to Dwolla for the full amount of any payment that you receive that is subject to a Reversal. You will not receive a refund of any Dwolla Fee that you may have paid. You authorize Dwolla to recover any Reversal amounts due by debiting your linked bank or credit union account, and/or engaging in collection efforts.
    4. Fraud. If you believe your Direct Account has been opened or used in an unauthorized manner, you agree to notify Dwolla immediately at [email protected] or 1-888-289-8744.
  5. Disputes with other Dwolla users.
    1. Dispute resolution. You understand and agree that Dwolla is not responsible for the goods or services that you pay for using the Direct Services. Each seller that you purchase from is responsible for providing the goods and services that you purchase and for providing all customer service related to those goods and services. We recommend that you review a seller’s policies before completing your purchase. You are responsible for resolving any disputes that you may have with a seller. If you have exhausted all options for resolving a dispute with a seller, you may choose to file a dispute claim with Dwolla (“Dispute”) by following the steps in Section 5.3.
    2. Release of Dwolla. By filing a Dispute, you understand and agree that:
      1. You are asking Dwolla to assist in resolving the dispute in our sole discretion and that such assistance or Dwolla’s decision may not be satisfactory to you;
      2. Dwolla’s assistance in resolving the dispute does not guarantee any particular outcome nor any action on Dwolla’s part; and
      3. You release Dwolla, our officers, directors, agents, employees, and suppliers from all claims, demands and damages of any kind arising out of your dispute with a seller and Dwolla’s review of your Dispute.
    3. How to file a Dispute. To file a Dispute, follow these steps:
      1. Within 45 days of the original transaction, email [email protected] with the following information:
        1. The email address associated with your Direct Account,
        2. The name of your recipient,
        3. The date of the transaction,
        4. The amount of the transaction, and
        5. The details of your disagreement with the recipient, including any steps already taken to resolve the issue and copies of supporting documentation (such as email correspondence, receipts, shipping confirmations, etc.).
        6. Provide any additional information or documentation that we may request. Once Dwolla has decided the outcome of the Dispute, the parties will be notified of the decision. You are required to comply with the decision and complete any actions required by such decision.
  6. User conduct.
    1. Restricted activities. You agree that in connection with your use of the Direct Services and your interactions with Dwolla you will not:
      1. Breach these Terms or any other applicable Dwolla terms or policies;
      2. Provide false or inaccurate information to Dwolla, including identity information;
      3. Engage in illegal or fraudulent activities;
      4. Engage in transactions involving illegal goods, including but not limited to counterfeit goods, stolen goods, illegal or controlled substances, and substances that pose a risk to consumer safety (including synthetics, “potpourri not for human consumption”, and other similar items);
      5. Engage in transactions involving illegal services, including but not limited to counterfeit services, illegal gambling, Ponzi and/or pyramid schemes, and money laundering;
      6. Engage in transactions involving debt collection services;
      7. Engage in transactions involving escort services;
      8. Engage in transactions involving the purchase, sale, or exchange of Virtual Currency, or provide a Virtual Currency marketplace or exchange (“Virtual Currency” means a medium of exchange that operates like a currency in some environments, does not have all the attributes of real currency, and is subject to regulatory guidance by the Financial Crimes Enforcement Network (“FinCEN”), and includes cryptocurrencies such as, but not limited to Bitcoin, Litecoin, Namecoin, and Peercoin);
      9. Provide white label ATM services;
      10. Engage in the following activities without Dwolla’s prior written consent: activities regulated by the FinCEN, including money services business activities and payday lending;
      11. Attempt to receive or actually receive duplicate compensation for a disputed payment from the recipient (such as a seller), Dwolla, and/or your bank or credit union; or
      12. Engage in activity that indicates, in Dwolla’s sole discretion, that there may be a high level of risk associated with you, your Direct Account, or any of your Direct Account activity.
  7. Termination of service.
    1. By you. You may stop using the Direct Services at any time. You may also close your Direct Account by contacting us at [email protected] or 1-888-289-8744. Dwolla may require that certain actions be completed before your Direct Account may be closed, including, but not limited to, pending payments and open Disputes.
    2. By Dwolla. We may close your Direct Account or terminate your access to the Direct Services without liability, for any reason, upon notice to you. Reasons for termination may include, but are not limited to, your violation of these Terms or any other applicable Dwolla terms or policies, Direct Account inactivity, or Dwolla’s assessment that you pose an unacceptable risk to the Dwolla network, based on our confidential risk and security criteria. Dwolla also reserves the right to modify or terminate the Direct Services at any time, for any reason
  8. Disputes with Dwolla.
    1. Binding arbitration. You and we (the “Parties”) agree that upon the election of either Party, any past, present, or future dispute relating in any way to your Direct Account, or any other past, present, or future relationship or transaction between the Parties, will be resolved by binding arbitration as discussed below, and not through litigation in any court. Such disputes are called “Claims” for purposes of these Terms. This arbitration agreement is entered into pursuant to the Federal Arbitration Act, 9 U.S.C. §§ 1-16. The arbitration shall be conducted by a single neutral arbitrator acting under the administration of United States Arbitration and Mediation, MidWest, Inc., and in accordance with the then-applicable United States Arbitration and Mediation Rules of Arbitration. Unless the Parties agree otherwise, or unless the arbitration administrator’s rules or law require otherwise, the arbitration shall be held in Minneapolis, MN.The arbitrator will decide the Claim in accordance with all applicable law, including recognized principles of equity and statutes of limitations, and will honor all privileges recognized by law. The arbitrator will have the authority to award to a Party any damages or relief provided for under applicable law. The arbitrator’s decision shall be final and legally binding, and may be enforced by any court having jurisdiction.No class actions or similar process, and no joinder or consolidation of any Claim with a Claim of any other person or entity, shall be allowable in arbitration, without the written consent of both Parties. The arbitrator shall have no authority to entertain any Claim on behalf of a class, group, person, or entity who is not a named party to the arbitration, nor shall any arbitrator have authority to make any award for the benefit of, or against, any class, group, person, or entity who is not a named party to the arbitration. In the event that there is a dispute about whether limiting arbitration to non-class proceedings, or to the named parties, is enforceable under applicable law, then that question shall be resolved by a court rather than by an arbitrator; and to the extent it is determined that resolution of a Claim must proceed on a class basis, it shall so proceed in a court of competent jurisdiction rather than in arbitration. If you elect to proceed with respect any Claim by an individual action in a small claims court, or its equivalent, instead of arbitration, we will not object, however, any such action shall be taken in small claims court in Des Moines, Iowa.

      If the arbitrator or arbitration administrator would impose filing fees or other administrative costs on you, we will reimburse you, upon request, to the extent such fees or costs would exceed those that you would otherwise have to pay if you were proceeding instead in a court. We will also pay additional fees or costs if required to do so by the arbitration administrator’s rules or applicable law. Apart from the foregoing, each Party will be responsible for any other fees or costs, such as attorney fees that the Party may incur. If you consider that you are unable to afford any fees or costs that would be yours to pay, you may request that we pay or reimburse them, and we will consider your request in good faith.

      Arbitration with respect to a Claim is binding and neither Party will have the right to litigate that Claim through a court. In arbitration the Parties will not have the same rights that apply in court, such as the right to a trial by judge or jury and the right to participate or be represented in proceedings brought by others such as class actions or similar proceedings. In addition, the right to discovery and the right to appeal may also be limited or eliminated in arbitration. All of these judicial rights are waived with respect to Claims that the Parties elect to arbitrate.

  9. General terms.
    1. Indemnification. You agree to defend, indemnify and hold harmless Dwolla, our officers, directors, agents, employees, and suppliers from any third party claims, actions, proceedings, and suits and related liabilities, damages, settlements, penalties, fines, costs or expenses (including reasonable attorneys’ fees and other litigation expenses) arising from: (a) your violation of these Terms or any other applicable Dwolla terms or policies; (b) your use of the Direct Services; or (c) your actual or alleged violation of any third party rights, or any applicable laws, regulations or rules.
    2. Limitation of liability. IN NO EVENT SHALL DWOLLA, OUR OFFICERS, DIRECTORS, AGENTS, EMPLOYEES OR SUPPLIERS BE LIABLE TO YOU OR ANY THIRD PARTY UNDER ANY CIRCUMSTANCES FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY, DAMAGES OR LOSSES, INCLUDING BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, DATA, OR OTHER INTANGIBLE LOSSES INCURRED IN CONNECTION WITH: (i) THESE TERMS, (ii) YOUR USE OF, INABILITY TO USE, OR UNAVAILABILITY OF THE DIRECT SERVICES, OR, (iii) ANY GOODS OR SERVICES PURCHASED, RECEIVED, OR PAID FOR USING THE DIRECT SERVICES, UNDER ANY THEORY OF LIABILITY OR CAUSE OF ACTION WHETHER IN TORT (INCLUDING NEGLIGENCE), CONTRACT OR OTHERWISE, REGARDLESS OF WHETHER DWOLLA HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL DWOLLA’S LIABILITY AND THE LIABILITY OF OUR OFFICERS, DIRECTORS, AGENTS, EMPLOYEES AND SUPPLIERS EXCEED THE FEES DWOLLA HAS RECEIVED FROM YOU THROUGH YOUR USE OF THE DIRECT SERVICES. THIS LIMITATION OF LIABILITY SECTION SHALL APPLY TO FULLEST EXTENT PERMITTED BY LAW IN THE APPLICABLE JURISDICTION.
    3. No warranty. THE DIRECT SERVICES ARE PROVIDED “AS IS” AND “AS AVAILABLE”, WITHOUT ANY REPRESENTATION OF WARRANTY, WHETHER EXPRESS, IMPLIED OR STATUTORY. USE OF THE DIRECT SERVICES IS AT YOUR OWN RISK. DWOLLA, OUR OFFICERS, DIRECTORS, AGENTS, EMPLOYEES AND SUPPLIERS, SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. DWOLLA DOES NOT HAVE CONTROL OF, OR LIABILITY FOR, ANY PRODUCTS OR SERVICES THAT ARE PAID FOR USING THE DIRECT SERVICES AND CANNOT ENSURE THAT ANY THIRD PARTY YOU TRANSACT WITH WILL COMPLETE THE TRANSACTION. DWOLLA DOES NOT REPRESENT OR WARRANT THAT THE DIRECT SERVICES WILL MEET YOUR REQUIREMENTS, BE CONTINUOUS, UNINTERRUPTED, SECURE, TIMELY, OR ERROR-FREE, OR THAT DEFECTS WILL BE CORRECTED. NO ADVICE OR INFORMATION, WHETHER ORAL OR WRITTEN, OBTAINED BY YOU FROM DWOLLA OR THROUGH THE DIRECT SERVICES WILL CREATE ANY WARRANTY NOT EXPRESSLY STATED HEREIN. DWOLLA SHALL NOT BE RESPONSIBLE FOR ANY SERVICE INTERRUPTIONS OR SYSTEM FAILURES THAT MAY AFFECT THE PROCESSING, COMPLETION OR SETTLEMENT OF DIRECT SERVICES TRANSACTIONS. THIS DISCLAIMER OF WARRANTY SECTION SHALL APPLY TO THE FULLEST EXTENT PERMITTED BY LAW IN THE APPLICABLE JURISDICTION.
    4. Assignment. You may not transfer or assign any rights or obligations you have under these Terms. Dwolla reserves the right to transfer or assign any rights or obligations under these Terms at any time.
    5. Applicable law. You agree that the laws of the State of Iowa, without regard to principles of conflict of laws, govern these Terms and any claim or dispute that has arisen or may arise between you and Dwolla.
    6. Complete agreement, no waiver, severability, and survival. These Terms, along with any applicable Dwolla terms and policies and that you have agreed to, set forth the entire understanding between you and Dwolla with respect to the Direct Services. Any failure of Dwolla to enforce any right or provision of these Terms shall not constitute a waiver of such right or provision. Any provision of these Terms held to be invalid or unenforceable under applicable law shall be struck, and the remaining provisions will continue in full force and effect. Sections 1 (Using Dwolla Direct), 2 (Consent to receive electronic Communications), 5 (Disputes with other Dwolla users), 7 (Termination of service), 8 (Disputes with Dwolla), and 9 (General terms), as well as any other terms which by their nature should survive, will survive the termination of these Terms.