Comments on: Operation Choke Point Strikes Again AEBN Has To Change Banks For Affiliates Using ACH https://mikesouth.com/mike-south-commentary/operation-choke-point-strikes-again-aebn-has-to-change-banks-for-affiliates-using-ach-10681/ The institute for the advance study of insensitivity and pornography Sat, 08 Jul 2023 13:37:46 +0000 hourly 1 https://wordpress.org/?v=6.7.2 By: Jay Mckenney https://mikesouth.com/mike-south-commentary/operation-choke-point-strikes-again-aebn-has-to-change-banks-for-affiliates-using-ach-10681/#comment-22172 Sat, 09 Aug 2014 21:40:25 +0000 http://www.mikesouth.com/?p=10681#comment-22172 Jay Mckenney liked this on Facebook.

]]> By: LurkingReader https://mikesouth.com/mike-south-commentary/operation-choke-point-strikes-again-aebn-has-to-change-banks-for-affiliates-using-ach-10681/#comment-21907 Fri, 11 Jul 2014 07:52:00 +0000 http://www.mikesouth.com/?p=10681#comment-21907 “AEBN told me that “despite being in good standing and having a compliant business history. On June 30th, we were informed by our bank that our ability to disburse funds through ACH and wire transfers was being terminated that same day.”

Unless I see a letter saying different I’m calling bullshit on this…5/3 bank has a fiduciary relationship with customers and must provide notice (usually thirty days) unless they have serious TOS violations like suspected fraud that can be proven but hasn’t yet been proven in a court of law. Which leads to next part of quote….about assurances…

“This came after previous assurances that reasonable time frames would be given to properly transition our business to avoid operational disruptions.””

Would those assurances have come during the time between initial notice giving thirty days and June 30 close date? As in choosing to believe operational change to the banks ACH processing or TOS violations could be gotten around vs covering bases and opening alternate ACH processing account?

Lastly….many banks are opting out of ACH processing altogether choosing to use third party ACH merchant processing in large part because of fee structure limitations imposed on financial institutions giving them more income using third party than direct processing.

This is not a porn issue …it is banking plain & simple. We recently started a business requiring ACH merchant processing and supplier pmts; some banks wanted a two year related business account history…despite having ample assets and a 10+ year relationship with three of them ..unless the account related to this business entity it was a no go for direct processing. Others simply said, we use third party now.

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