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May 23, 2013, 04:47:51 PM |
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First, let me just say that I am huge fan of Dwolla. They have been taking a lot of flack from the chargeback policy, but the truth is there are asshole people (or victims as the case may be) that initiate these chargebacks and there are really dumb banks that have let this sort of thing go on for as long as I've been alive. Due to the fact that Dwolla has to, at some point, deal with an ACH transaction, they can fall into the chargeback trap. And that's exactly what has happened.
With that said, it makes me wonder what steps Dwolla is taking to severely mitigate this risk. I don't have any inside information on that, but I can share with you my experience.
I opened my Dwolla account and they initially asked for the usual name/address/ssn. I then deposited $20 from my bank account to Dwolla. Aside from the routing/account info, there was not much more. To me, that was not a very secure KYC practice.
But then I deposited $4,000 to Dwolla, and then the level of scrutiny was quite sufficient. They asked a slew of questions including:
1. at a previous address (that they provided), what make vehicle did I drive?
2. at an address before that, what was the name of the person that bought the house?
3. what month was my brother (name was include) born?
4. what year model is one of the cars I own (diff car from above, they provide the make model).
I think there were two others as well. Then it took about 5 to 6 business days to clear everything.
That line of questioning to verify I was who i say I am exceeded my expectation. I think some would not like the amount of time it takes, but it makes me feel a little more secure dealing with large sums of cash.
Opinions or experiences welcome.
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