Dwolla recently introduced Labels. Labels are a ledger-based organization system that Dwolla is making accessible to developers through the Dwolla API. The goal of Labels is to reduce the need to create multiple accounts, or verified customer records (VCR), for funds of a single user. This duplication costs developers undue cost and time in traditional use cases.
"Developers can now leverage the ledger to do subaccounting at scale without creating multiple accounts and without creating secondary systems or complex funds flows of their own," Dwolla's Ben Milne commented in a blog post announcement.
The Labels identify where an account owners funds are allocated, but the account owner (or VCR owner) always maintains ownership of the funds. Labeling allows the organizing party (e.g. app or service owner and Dwolla API user) to gain instant, real-time access to fund location. The Label that provides such access is created through an API post, and individual ID is referenced through the API.
At the API level, a Label is a designated portion of funds within the VCR's balance. Developers can create Labels for any purpose through the API. Once an ID is created for a particular label, funds can be seamlessly moved from one Label to another. All API functions regarding Labels are conducted through the Dwolla API.
The Labels functionality is currently available to developers with Scale and Enterprise accounts. Dwolla has published guides in its developer docs to help users create their first Label. Developers can create, delete, and retrieve Labels, as well as call an entire list of Labels through the Dwolla API.