The news regarding Silicon Valley Bank caught many of our friends, customers, and competitors off guard. We can often take our banking system for granted.
Zevez does not user Silicon Valley Bank service in any way. We’ve chosen both our partners and our business model to limit customer exposure to events like those that occurred last week.
Many other AP automation solutions use an end-to-end Good Funds model: they transfer funds directly from customer accounts to their FBO (For Benefit Of) account at their bank of choice. Those funds are co-mingled with all other customers funds. Payments that go out by card, check, and ACH are then funded from the FBO account.
Zevez does not utilize a FBO accounts for our customers. For card payments, our customers use our sponsored card programs leveraging both American Express and Visa.
For customers using our Rewardworks integrated check payments, we verify customer bank accounts and once checks trigger from Rewardworks, we print, stuff, stamp, and mail them as though they were written by hand from your office.
For customers leveraging ACH payments through Rewardworks, we use an ACH provider utilizing several financial institutions to provide redundancy and minimize risk. FI’s include: Veridian Credit Union, Evolve Bank & Trust, Pathway North America, and Cross River Bank. These FI’s undergo annual audits and quarterly business reviews to ensure any risk of payments is managed.
For customers looking for Treasury Management solutions we highly recommend Treasure Financial, as they have fantastic self-managed treasury solutions to maximize liquidity and minimize the risk of FDIC’s $250,000 limit.
If you have further questions or concerns about your current practices and how they could be impacted by banking risk or wish to know more about Rewardworks and our customer first funds model, feel free to reach out.
