Only indivuals or sole proprietors are allowed to use our online banking. For some reason I am told that commercial accounts are not allowed to set up an online banking account. Is there a regulation that prohibits us from allowing a commercial account for a corporation, llc, etc. from doing online banking?

If there is, we'll be in trouble for it!

I think the reason behind it is because of the type and volume of use a commercial customer might have as opposed to a consumer - and the impact on pricing.

But, we have allowed our commerical customers access to the consumer product, with no issues.

Do you allow internet banking transfers between commercial acccounts with differenct TINs, same signers? For example, we have a customer who has three LLCs, they want internet banking to transfer between accounts?

We have separate systems for Consumer and Business Internet Banking. We do make allowances and let sole proprietorships sign up under the Consumer side. For businesses, they can only transfer money between accounts that are "housed" under the specific business name.

No, we make very clear distinctions based on ownership. Even if they had the same signers, if we have three LLCs with three different TINs, we'd have three separate online banking profiles, which would not allow for transfers between the two.

Same thing goes for combining a business account signer with their personal accounts. The only exception we make to that is Sole Proprietors.

Why do you not allow transfers between the different LLCs?

Typically you only allow for transfers between accounts that have the same owner. Think about personal accounts - you would not want your bank to allow me to transfer funds from your account to mine. It's the same with a business - you only link accounts of the same owner - If each LLC has a separate name and TIN, then they are 3 separate entities - different owners on each account. So, even if they are ultimately owned by the same individual(s), they are separate entities.

Hope that helps - Have a Happy Thanksgiving everyone!

Well said Tex!

Even if the LLCs start out with the same principals, they could change partners or ownership at any time. There must be a reason their ownership is separate, therefore the funds should be separate as well.

Do you not allow transfers between the businesses because of some regulation, or is it a risk issue?

I don't think there's any regulation that specifically says don't allow transfers between accounts of different ownership, so I'd say it's a risk issue. It makes it too easy for one to pilfer another's accounts.

We wouldn't allow two individuals that had separate ownership of accounts (say you and I) to be on the same profile. No more than a teller would let one company come in and withdrawal funds from another company's accounts. Same theory.