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I’ve heard of this scenario before, banks freezing funds and closing accounts. My first instance was back in 2014 with a distributor aka OSO (Off-Site Owner) aka IADs (Independent ATM Deployer) as they are referred to in this article. This customer, who only had 8-10 sites doing business out East did pretty standard transaction volume, but yet he received a letter that he had 10 days to comply with the bank’s requests or find the accounts closed and funds froze. Part of the bank’s condition was “Ask Your Sponsor Bank for a Letter Identifying Your Business as a ‘Sponsored’ Operator”. I believed that the USA Patriot ACT also known as the Addendum to the Site Location Agreement would be the fix. At the time, this didn’t satisfy my customer’s bank and they requested a letter from ISO as well. This distributor felt the pressure to close his accounts before the bank did and he moved them to another financial institution, but 3 years later he is dealing with the hassle once more. “This past week I had to fight to keep my bank accounts open yet again, this time over too few CTR reports I guess.”

A currency transaction report (CTR) is a report that U.S. financial institutions are required to file with FinCEN for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through or to the financial institution which involves a transaction in currency of more than $10,000. Will separate accounts for your reimbursement/vault cash and Interchange/surcharge save you a headache? I would say do it; get ahead of it and diffuse the bomb before it becomes a problem. I’m hoping that legislature will catch up and help save you distributors, OSO’s and IAD’s from hassle and headaches, but I won’t hold my breath that a solution will present itself sometime soon, but in between time be involved with your bank and your ISO account manager. You have to have allies in this industry. If you’re lacking an ally I hope you’ll look me up. Everyone needs at least one.

Written by Molly Stewart, Lieberman Companies

#ATMs #Banking #Sales

Categories: ATM, Banking, Sales     Tags: ATMs, Banking, Sales