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#2260708 - 10/05/21 05:48 PM Debit Card Credits - Venmo/Cash App/Facebook
Brightside3277 Offline
Member
Joined: Aug 2012
Posts: 83
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?
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#2260714 - 10/05/21 06:57 PM Re: Debit Card Credits - Venmo/Cash App/Facebook Brightside3277
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,311
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.
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#2260717 - 10/05/21 07:00 PM Re: Debit Card Credits - Venmo/Cash App/Facebook HappyGilmore
HappyGilmore Offline
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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
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#2260729 - 10/05/21 07:51 PM Re: Debit Card Credits - Venmo/Cash App/Facebook Brightside3277
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,216
Galveston, TX
No judgement intended either - but I agree.
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#2260745 - 10/05/21 09:02 PM Re: Debit Card Credits - Venmo/Cash App/Facebook Brightside3277
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,333
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).
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#2260796 - 10/06/21 02:52 PM Re: Debit Card Credits - Venmo/Cash App/Facebook Brightside3277
John Burnett Offline
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John Burnett
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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.
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#2260892 - 10/07/21 05:21 PM Re: Debit Card Credits - Venmo/Cash App/Facebook John Burnett
RR Sarah Offline
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RR Sarah
Joined: Mar 2004
Posts: 2,479
Up North
I believe they said the credits were coming through as debit card transactions. Are they showing as pre-authorizations?
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