Right now, Dwolla fills a void. They do 2 things- verification of a customer and ACH

We've gotten an ACH license to pull directly from your accounts, right now our biggest hurdle is the verification and KYC stuff.

Hopefully that should be sorted in weeks time and we will easily replace Dwolla.

Once you can use Bitinstant to do ACH for a fraction of the current cost, then Dwolla will become redundant. They will lose alot of revenue to Bitinstant and to Bitcoin.

Don't forget, a nice chunk of Dwolla's % monthly revenue stream comes from Bitcoin. They know it, and we know it. Why do you think they still work with us?

Our reliance on Dwolla will soon go away!! Just need to hang in there a little longer  

-Charlie

The 3.99% fee is only for cash deposits.

Dwolla's fee is $0.25 but it takes 7 days to get verified and set up.

If I can do ACH for about 1%, but the turnover is about 24 hours, would you pay it?

+1

I know I am betting on BitInstant blowing Dwolla away.

BitInstant just needs mobile apps.

I've used Dwolla many times to move money from the Bank to Gox. There have been occasions where it took 10 calendar days before the money appeared in Dwolla, and the average time I'd say is 5-6 calendar days (including weekends). The Bitcoin price can often change by more than 1% in less time then that, so waiting a week just to save 1% might actually cost you both a week and more than 1%.

Everyone will have a different time-preference for their money, of course, but given the volatile nature of BTC, speed is very valuable.

We are strictly talking about deposits here. Deposits are more expensive because we need to verify identity and KYC

Thats the hard part, working on it.

I agree with the prediction. I've used Dwolla for many small transactions, but Bit-Instant for more money transfered. Add to that the Tradehill fiasco, and I would stop using Dwolla altogether if Bit-Instant offered 1% transfers in a day or two.

Why do cash deposits have a higher fee? Doesn't that method have zero possibly of reversals and the lowest fraud?