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September 11th, 2017

Mobile Banking Apps – Beware


IMPORTANT NOTICE

BEWARE OF THE MOBILE APP

September 11, 2017
Dear ManagedPAY Clients and Associates,
A few weeks ago, ManagedPAY experienced several employee checks being returned to us.  These were checks written on our bank account to employees of the clients we serve.  The checks were marked, “Un Locate Account” rather than “Unable to Locate” or “Non-Sufficient Funds.”  We found it perplexing.  We requested copies of the returned items from our bank.  The name was clear, the micr line was clear, the amount was clear.  Having recently started a new bank account for servicing our iSolved clients, we thought perhaps it was a problem with the micr line on those checks or possibly even the new check stock.  But this also wasn’t the case.  We had two completely different bank accounts involved and two completely different check stocks.   There was one common thread with each of these returned items, however:   Wells Fargo.


Our owner, Bill Rosado, went straight to the President of Wells Fargo and asked them to help us solve this puzzle.   Wells Fargo graciously offered to look into the problem.  It has taken some time and some hard work on Wells Fargo’s side, but they were able to determine that the problem was the fact that the checks were deposited via mobile apps.   Apparently their app was blurring the name and/or the micr line so the account number could not be easily read.  Wells Fargo has reported that they are currently working on a solution to this problem internally.


While we haven’t seen this happen with any other financial institution except Wells Fargo Bank, we wanted to reach out to our clients to make them aware of the potential problems with mobile banking so you can warn your employees.


Mobile banking, while convenient, may not be the best way to deposit their checks.
ManagedPAY extends a heartfelt “thank you” to Wells Fargo for digging in to determine the root cause of the returns.  Along the way, we’ve made some good friends and contacts at Wells Fargo.

Always trying to keep you informed…..


 
Your ManagedPAY Team

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