Does anyone know when a customer initiates a payment to be made to a credit card account (credit card account is with Citi, BoA, CapitalOne, etc., for example) from the customer's outside bank checking account, is this payment handled/processed by CashEdge for that credit card company (assuming CashEdge is the third-party who is associated with the group bank (Citi, BoA, CapitalOne, etc., for example)? Or is this electronic ACH debit from the customer's outside bank checking account processed/treated in a different manner? By "group bank" I mean the bank that has the same name as that of the credit card company (Citi bank <-> Citi cards, for example, although I suppose Citi bank and Citi cards are separate entities).
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posted: Aug. 30, 2007 @ 6:49p
mespin
Ancient Member
posted: Aug. 31, 2007 @ 1:23a
What difference does it make who processes it on the backend?
Even within the same company, credit card and banking units tend to be quite separate, so they may not have unified packages to handle similar transactions across the entire organization. Not sure who processes the credit card payments (although it would vary by bank), but they are handled differently in at least one respect. CashEdge inter-institution transfers require you to verify that the accounts involved are yours, either by verifying a trial deposit or by authenticating your username/password. I have never seen such authentication built into a CC issuer's own CC payment system. You seem to be able to type in any routing and account numbers and that's it.
SinbadS
Member
posted: Aug. 31, 2007 @ 2:10a
mespin said: What difference does it make who processes it on the backend?
Well that makes a difference! If a customer is suspended by CashEdge for his access to Inter Institution Transfers on the bank side, then what effect that would have on his credit card payments through an outside bank checking account? If CashEdge handles such payments for the credit company arm also, then you are screwed since you are on their black list. And that could happen when you schedule an ACH electronic payment on the credit company side to be debited from your outside bank checking account. My question is who handles such credit card outside bank checking account debit payments, which is actually a form of Inter Institution Transfer?
ellory said: I was bored before, but now this is interesting
Why were you suspended by CashEdge? A few too many small payments initiated from HSBC on the same day. It then spread to suspension from BoA, Citi, and CapitalOne among others as well. It apparently also screwed up my credit card payment at BoA since the payment was returned. I am now totally reverting to Bill Pay since most of these banks use CashEdge and I am not sure if my ACH payments go through safely. My only safe haven is Chase now since they do not seem to use CashEdge.
This example from Citi:
Please be advised that your access to Inter Institution Transfers service has been suspended.
Sincerely, Citibank Inter Institution Transfer Service
Almost all banks suspended Inter Institution Transfer service without any notice and within a few days.
markkundinger
Senior Member - 2K
posted: Aug. 31, 2007 @ 5:29a
The hard part of doing an ACH transaction is "originating" the transaction. Then, the other bank receives the transaction, and either processes it or rejects it.
Let's say you have your electric bill. The Electric Company has a banking relationship with Joey Joe Bob Bank. Let's also say you have your checking account with BofA, who has a relationship with CashEdge (and Checkfree for billpay).
If you go to The Electric Company's website, and click "pay my bill", then the ACH item is originated by Joey Joe Bob Bank. The item is routed to BofA. CashEdge probably doesn't come into play at all. BofA would then generally be expected to process the transaction, unless they placed broader restrictions on your account, or you didn't have enough funds, or messed up the account number.
SinbadS
Member
posted: Aug. 31, 2007 @ 5:36a
Thanks for your information. The CC account was BoA Business Visa (a new account). I used outside institution payment option. I entered the same bank account info I have been always using and it returned after 6 days. And no one at the BoA can tell me why. This was the first payment and they closed the CC account immediately.
SinbadS
Member
posted: Aug. 31, 2007 @ 5:44a
markkundinger said: The hard part of doing an ACH transaction is "originating" the transaction. Then, the other bank receives the transaction, and either processes it or rejects it.
Let's say you have your electric bill. The Electric Company has a banking relationship with Joey Joe Bob Bank. Let's also say you have your checking account with BofA, who has a relationship with CashEdge (and Checkfree for billpay).
If you go to The Electric Company's website, and click "pay my bill", then the ACH item is originated by Joey Joe Bob Bank. The item is routed to BofA. CashEdge probably doesn't come into play at all. BofA would then generally be expected to process the transaction, unless they placed broader restrictions on your account, or you didn't have enough funds, or messed up the account number.
What if your Inter Institution Transfers at Joey Joe Bob Bank is suspended, and you still click "pay my bill" and initiate the ACH item (originated by Joey Joe Bob Bank)?
SinbadS
Member
posted: Aug. 31, 2007 @ 5:51a
I sent them a long email @ customer_support@cashedge.com. They tend to ignore account holders and mostly deal with banks. If I do not receive a meaningful response from them I WILL go to their office IN PERSON. They are located in Sunnyvale CA, and I am next door...
maddybeagle said: There was somebody else that posted recently that they were suspended...might be worth a search.. Yes, in my long email to CashEdge, I also included that link for them to reference. I wrote ... Some suspensions are justified for obvious reasons, but many more are not, including my case (you can find a similar discussion in this forum: My bank to bank transfer was suspended by CashEdge: http://www.fatwallet.com/t/52/731542/).
SinbadS said: maddybeagle said: There was somebody else that posted recently that they were suspended...might be worth a search.. Yes, in my long email to CashEdge, I also included that link for them to reference. I wrote ... Some suspensions are justified for obvious reasons, but many more are not, including my case (you can find a similar discussion in this forum: My bank to bank transfer was suspended by CashEdge: http://www.fatwallet.com/t/52/731542/).
You really shouldnt be directing institutions to specific fat wallet threads...How is that going to help anybody....I am not as stupid as these guys, so please give me my access back vs. them seeing the discussion and taking more action against folks??
SinbadS said: Yes, in my long email to CashEdge, I also included that link for them to reference. I wrote ... Some suspensions are justified for obvious reasons, but many more are not, including my case (you can find a similar discussion in this forum: My bank to bank transfer was suspended by CashEdge: http://www.fatwallet.com/t/52/731542/).
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