Dwolla stops support for virtual currencies

[hashman]

Go deactivate your account and email them to let them know why.

Why?  It is free to leave your account there, and gives you ability to ACH between bank accounts should you need to do that in the future.

Their letter looks like somebody is trying to make a point to somebody else..  sure, it will seriously hurt campBX, but why bother to cancel my account? 

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[crazy_rabbit]

Go deactivate your account and email them to let them know why.

Why?  It is free to leave your account there, and gives you ability to ACH between bank accounts should you need to do that in the future.

You can't ACH directly from your bank account to another?

[crazy_rabbit]

As Dwolla gears up for a new stage of growth, we recognize that we can no longer sustain this merchant base (.1 percent of Dwolla merchants) and its unique needs, and that attempting to do so jeopardizes both of our communities' starkly different, but similarly ambitious, vision for improving payments.

Basically they are saying Bitcoin competes with their business model (because who would need Dwolla if Bitcoin takes off?) and thus they wont' support it. I'm not surprised.

[favdesu]

and nothing of value was lost

[cr1776]

http://help.dwolla.com/customer/portal/articles/1203269-closing-your-dwolla-account

There is a difference between deactivate and suspend btw.

Anybody see an easy 1 click way to deactivate your dwolla account? It is quite possible that I missed the link or button...

[jgarzik]

I think this is going to hurt CampBX much more than it will Dwolla, and it for Bitcoin it is only a matter of wounded pride.  Now the only way to get money to them is by using postal mail via money orders or personal checks.  No wire transfers, no ACH.

This is false.

CampBX works fine with ACH.

CampBX recently restated this on Facebook, following the Dwolla shutdown:  https://www.facebook.com/CampBX/posts/665137400165381

[justusranvier]

CampBX works fine with ACH.

Only in one direction.

You still can't add dollars to your CampBX via ACH. When this Dwolla change goes into effect, the only ways to fund a CampBX account with dollars will be Money orders or Checks sent through the mail.

[justusranvier]

Shrem gave a talk at a Bitcoin conference a few days ago saying BitInstant will be back and ready to tackle regulatory issues (paraphrasing), so there's one thing to look forward to.

Apparently they are ready to go but are having problems finding banks willing to work with them. It sounded like as soon as they actually got all the licensing required for what they are doing it suddenly got harder, not easier, to find a banking partner.

[RodeoX]

As Dwolla gears up for a new stage of growth, we recognize that we can no longer sustain this merchant base (.1 percent of Dwolla merchants) and its unique needs, and that attempting to do so jeopardizes both of our communities' starkly different, but similarly ambitious, vision for improving payments.

Basically they are saying Bitcoin competes with their business model (because who would need Dwolla if Bitcoin takes off?) and thus they wont' support it. I'm not surprised.

That's what I thought also. All this press lat week about bitcoin going mainstream must be spooky for them. Bitcoin is nightmare. A competitor who can provide a more secure transfer for less than Dwolla's fixed costs. 

[Melbustus]

Go deactivate your account and email them to let them know why.

Might want to also tweet @dwolla and @bpmilne (CEO).

[Elwar]

There is only CampBx and they seem like they are close to going bankrupt with their moves to keep users money and their policy of not responding to any user problems.

I am sure Dwolla was getting tired of people wanting their money back when CampBx stopped crediting user accounts for transfers.

If I was Dwolla I would have dropped CampBx as well.

[CurbsideProphet]

As Dwolla gears up for a new stage of growth, we recognize that we can no longer sustain this merchant base (.1 percent of Dwolla merchants) and its unique needs, and that attempting to do so jeopardizes both of our communities' starkly different, but similarly ambitious, vision for improving payments.

Basically they are saying Bitcoin competes with their business model (because who would need Dwolla if Bitcoin takes off?) and thus they wont' support it. I'm not surprised.

That's not how I read it.  I think they're saying Bitcoin is just too big of a pain in the ass with regards to AML/BSA and is such a small part of their business, is not worth getting shut down over.

[Welsh]

It's sad to see this, hopefully enough people will contest.

[gnix72]

I think this is going to hurt CampBX much more than it will Dwolla, and it for Bitcoin it is only a matter of wounded pride.  Now the only way to get money to them is by using postal mail via money orders or personal checks.  No wire transfers, no ACH.

Actually CampBX says you can use wire/ACH now.  See their recent facebook update, or tldr: "Dwolla deposits to CampBX will end Oct 15 and Dwolla withdrawals from CampBX will end Oct 28. Please use money orders and ACH for your trading needs on CampBX."

https://www.facebook.com/CampBX?hc_location=timeline

[mekanical]

I can also confirm that this development will sever all ties with Ripple as well. 

[MicroGuy]

That's not how I read it.  I think they're saying Bitcoin is just too big of a pain in the ass with regards to AML/BSA and is such a small part of their business, is not worth getting shut down over.

ACH transfers can be, and are, routinely reversed in certain situations.

My understanding is they simply couldn't solve the equation of being a middle man between one party using a reversible payment method and a second party using an irreversible payment method.

[yvv]

I can also confirm that this development will sever all ties with Ripple as well. 

Dwolla did not have much business with ripple gateways. Only with SnapSwap for several weeks. They will probably switch back to ACH.
 

[Cubic Earth]

Here is my email exchange with Dwolla:

Hi,
I've found Dwolla to be an excellent and convenient system. I have primarily used it to get money to bitcoin exchanges. I am quite disheartened to hear that you will no longer be doing any business with bitcoin related companies. I strongly encourage you to change your position and continue to facilitate the movement of money over the internet.

I would at the least appreciate an explanation that doesn't leave everyone wondering what Dwolla's real motivation is. Why this change now?

Thanks, Me
*********************************************
*********************************************
Dwolla Support:

Thank you for your email and feedback, we value you as a Dwolla member in our network. The explanation we received states:
As Dwolla gears up for its next stage of growth and offerings, it’s essential that company resources remain focused on the deadlines, products, partnerships and users that will help grow the company, and that regulators have a firm understanding of our technology and its potential inside existing U.S. financial systems.

I hope you found this information helpful, and please let us know if you have any additional questions regarding this matter.

Sincerely,
Dwolla Support

[rampantparanoia]

Here is my email exchange with Dwolla:

Hi,
I've found Dwolla to be an excellent and convenient system. I have primarily used it to get money to bitcoin exchanges. I am quite disheartened to hear that you will no longer be doing any business with bitcoin related companies. I strongly encourage you to change your position and continue to facilitate the movement of money over the internet.

I would at the least appreciate an explanation that doesn't leave everyone wondering what Dwolla's real motivation is. Why this change now?

Thanks, Me
*********************************************
*********************************************
Dwolla Support:

Thank you for your email and feedback, we value you as a Dwolla member in our network. The explanation we received states:
As Dwolla gears up for its next stage of growth and offerings, it’s essential that company resources remain focused on the deadlines, products, partnerships and users that will help grow the company, and that regulators have a firm understanding of our technology and its potential inside existing U.S. financial systems.

I hope you found this information helpful, and please let us know if you have any additional questions regarding this matter.

Sincerely,
Dwolla Support

"we like it, but there's too much red tape to deal with"

[lyth0s]

Honestly I would just start using Coinbase to Convert BTC to a USD bank deposit. Or you can buy BTC through it with your bank account so transactions work in both directions. I've been using it for a few months and have no problems with it.