For those of you who offer Bank on Line account access, do you allow a Corp., LLC or Partnership to have transfer capabilities between the business account and a personal account? If not, can you share with me your reasons for the limitation? Thanks.

The previous institutions I've worked for haven't allowed that type of transfer (unless it was payroll related and we handled the payroll processing). The main issue was security and the high risk of embezzlement by users. I believe the only exception was for a sole proprietor. At my current location it's not an issue as we do not have a web-site.

Our institution does not allow this type of transaction either with the exception of the sole proprietorship since it is one in the same. We go one step further however, and offer a "cash managment" type program on line. This may be an option you will want to consider adding to our online service if it's available. It allows for various users with various levels of authority and is designed for business customers. If you want more information on this,send me a pm.

We allow transfers between any accounts that have common ownership - funds cannot be transferred outside of common ownership. So, if a corp has two or more accounts, those accounts are grouped by ownership with an online transfer option available.

I just don't see a risk to consider, but the efficiency is very apparent.

I agree that if the ownership is the same, then there is not a problem. I would hesitate to allow transfers to accounts where the ownership is not the same. A corporate account would be owned by the corporation, therefore, transfer to an individual's account would not be possible. By limiting transfers between accounts with the same ownership should take care of this problem. Sole proprietorships are not your concern--if they set them up with the same ownership, then the transfer would be allowed. Who cares if the sole proprietor is siphoning money from the company for personal use? He owns the business. Partnerships could pose a problem where you have two people in a partnership who think they are a proprietorship and opened the "partnership" account as a proprietorship account (happens all the time). Would the online banking allow the first person on the account transfer funds to their personal account? What about a husband and wife partnership? Would the online banking allow a business account with the H&W listed as owners to transfer to the H&W's personal account?

As you can tell, I do think there is reason for limiting transfers from an embezzlement standpoint. Different business types have different levels of risk.

The ownership issue is quite easy to resolve when implementing your procedures for online banking. All accounts with the same TIN can be linked together. That's why the cash management for businesses, with the exception of a sole propritorship, is such a great tool to offer those business clients. For instance, a business has an employee who has authority to reconcile statements, but not to write checks. He/she can be given "look only" authority. Or if the account requires two signatures, it would require two employees with the appropriate access and authority levels to complete a transaction. Good for us and good for them. Protects both ways. :

ITI/Fiserv uses the portfolio concenpt to handle ownership issues - common accounts are placed in portfolios, even if the SS numbers are different - but ownership is the same. Within each portfolio, the institution decides which accounts can be accessed online or the customer can make that decision and inform the bank. Works very well.

I appreciate the feedback. The question was prompted due to the current move towards a strong sales culture at my bank. Employees, who are trying to meet sales quotas, sometimes ask for the "moon" in order to obtain or keep a certain customer. It helps to know what other options can be suggested without having to just say "no" to the whole proposal.

You are on the right track toward a 'sales culture' by looking closer at this issue. When someone states that it's not possible, the "Why Not?" question comes into play and its often surprising when sufficient discussion brings up a result that is not aligned with 'not possible.'

By the way, good luck with the 'sales culture,' it's one of the most difficult things to develop in the banking world.