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Can you elaborate on why incoming transfers from reputable companies have a certain risk attached? I simply can't think of any reason why that should be the cas
by melvinmt 14y ago
Can you elaborate on why incoming transfers from reputable companies have a certain risk attached? I simply can't think of any reason why that should be the case. Isn't the primary function of the bank to receive and store your money?
- jacques_chester 14y agoFrom the POV of the bank, no. Their primary function is to make money on the carry trade between money borrowed and money lended. Your deposits are borrowed funds. Generally, in the case of fraud, the bank is the one who is on the hook. They must make good on, for example, a chargeback. When your entire business model is built around making 2-3% on large pools of money, it's critical to squash risk. The losses from one fraud event can wipe out the LTV of a small business account.
- jonknee 14y agoMoney from unknown sources (aka "online services") coming in daily doesn't seem outrageous to be an outlier for fraud. Especially if the account was being used as a float of sorts (a small balance kept).
- lectrick 14y agoGoogle "Sarbanes-Oxley" and weep.
- patio11 14y agoIt could be as simple as "We do not have sufficient risk controls on that product to feel comfortable with you moving that velocity of money through it. Given that your use of the product is not very valuable for us, we decline to bear an unknown, uncontrolled risk to secure your business."