DES MOINES -- Online payments service Dwolla released a new feature called Instant that gives users access to cash instantly, avoiding the two- to three-day waiting period for transfer of funds.
Previously, users could only initiate an immediate transfer of funds if they had money in their Dwolla account. If a user wanted to access money from a different source, like a linked credit union or bank checking account, the transfer would take up to three days.
The feature is provided through a partnership with TMG Financial Services, an affiliate of the Iowa CU League and investor in Dwolla.
There is a $3 monthly fee for users who choose to use to the Instant feature. Users can opt-out whenever as long as they have a zero Instant balance.
When a user chooses Instant, Dwolla will extend a line of credit up to $500 to the user. No additional fees are charged for the first 30 days following the Instant transfer. If the Instant balance is not paid back in 30 days, the user will pay a $5 fee per month for every month he carries an Instant balance. Dwolla also offers Instant users the option to initiate repayment from a linked account immediately following the Instant transfer.
