Skip to content
BOL Conferences
Thread Options
#2260708 - 10/05/21 05:48 PM Debit Card Credits - Venmo/Cash App/Facebook
Brightside3277 Offline
Member
Joined: Aug 2012
Posts: 88
Oklahoma
Any input from other Bankers would greatly be appreciated. There have been an influx of debit card credits from Venmo/CashApp/Facebook that are memo posting immediately to our customer accounts (even though there is a different effective date), and then aren't settled until 2-3 business days after. Customer comes in and gets the money the same day the money is posted, the transaction never settles for whatever reason, and we are left with a loss. What are other financial institutions doing to help mitigate this risk? Do you not give immediate credit on any memo posted debit card credits? Is this something we have to work through the dispute process?
_________________________
Keep calm, and let the compliance officer handle it....

Return to Top
Deposits and Payments
#2260714 - 10/05/21 06:57 PM Re: Debit Card Credits - Venmo/Cash App/Facebook Brightside3277
HappyGilmore Offline
10K Club
Joined: Jun 2004
Posts: 19,844
Pulling people out of the ditc...
Quote
hat are memo posting immediately to our customer accounts (even though there is a different effective date), and then aren't settled until 2-3 business days after. Customer comes in and gets the money the same day the money is posted, the transaction never settles for whatever reason, and we are left with a loss.

your bank allows your customers to withdraw memo posted funds as good funds? your bank controls that process. stop allowing your customers to have access to memo posted transactions. only allow access to hard posted/settled funds. problem solved.
_________________________
Providing alternative truths since the invention of time

Return to Top
#2260717 - 10/05/21 07:00 PM Re: Debit Card Credits - Venmo/Cash App/Facebook HappyGilmore
HappyGilmore Offline
10K Club
Joined: Jun 2004
Posts: 19,844
Pulling people out of the ditc...
Originally Posted by HappyGilmore
Quote
hat are memo posting immediately to our customer accounts (even though there is a different effective date), and then aren't settled until 2-3 business days after. Customer comes in and gets the money the same day the money is posted, the transaction never settles for whatever reason, and we are left with a loss.

your bank allows your customers to withdraw memo posted funds as good funds? your bank controls that process. stop allowing your customers to have access to memo posted transactions. only allow access to hard posted/settled funds. problem solved.

edited - ooh, i realize that sounds much harsher than i intended when i wrote it. no judgement intended, just a simple perspective
_________________________
Providing alternative truths since the invention of time

Return to Top
#2260729 - 10/05/21 07:51 PM Re: Debit Card Credits - Venmo/Cash App/Facebook Brightside3277
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
No judgement intended either - but I agree.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2260745 - 10/05/21 09:02 PM Re: Debit Card Credits - Venmo/Cash App/Facebook Brightside3277
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Is your institution also allowing early access to ACH direct deposits like SSA, VA, payroll, etc.? I know a number of institutions have started doing that (Capital One is heavily advertising it). It's a management decision, and if you're getting those Venmo, CashApp and FB credits via ACH, you are accepting more risk for them (because there MAY be a greater risk of not having them funded).
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2260796 - 10/06/21 02:52 PM Re: Debit Card Credits - Venmo/Cash App/Facebook Brightside3277
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
If you are getting Venmo, CashApp and FB credits via the ACH, I question how they could not be funded. The ODFIs for those transactions have to settle for them. Even third-party senders have to be accountable for the credits they send via ACH.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2260892 - 10/07/21 05:21 PM Re: Debit Card Credits - Venmo/Cash App/Facebook John Burnett
RR Sarah Offline
Power Poster
RR Sarah
Joined: Mar 2004
Posts: 2,505
Up North
I believe they said the credits were coming through as debit card transactions. Are they showing as pre-authorizations?
_________________________
Sometimes you have to burn a few bridges to keep the crazies from following you.

Return to Top

Moderator:  John Burnett