What is recommended/required for Merchant Services retention? Our applications are kept according to the open date, which doesn't seem right to me. Shouldn't retention be based on the close date?

What is a Merchant Services application, what does it tell you, what information is on them, might you need them in a lawsuit, etc.

It has all of their account information (services will pass through), date applied, officers, etc. This is signed and dated. We also have a fee sheet that's signed and dated. So they're agreeing to the fees (service) but it doesn't provide the other details. I was trying to determine if the fee sheet would be sufficient.

To me your question is a little confusing you say "Our applications are kept according to the open date, which doesn't seem right to me. Shouldn't retention be based on the closed date?". Are you referring to open accounts here or closed accounts how they are stuffed in a file cabinet? You may check state law for any retention period related to these specific documents.

A lot of retention is based on "after the account is closed." Our agreement retention is "x" years after the account is open. When you use a close date that ensures all documentation is kept the entire length the account is open plus the retention period in the case something came up after the account closed. However, if you go off the open date that means documents may be shredded while the account is still open.

If documents are being shredded while the account is opened and the bank has no other copy (such as scanned) then your bank has major issues.

It's not a major issue. We don't just shred things. I am asking about one specific document. We are following a retention of a prior compliance officer which came from a document she found in research, but I'm wondering if it should be updated.

If you are asking specifically related to "Merchant Services", I would tell you it could be a state issue. Without knowing the specifics of what your document does or says, I do not know of any regulation it would cover.

Ask your legal counsel to review to determine if it pertinent to the on-going business relationship.

Thank you!