You are wrong - the letters I recieved were for Business Checking accounts.
The accounts that are impacted are the plain vanilla Basic Business Checking, Business Checking With Interest, and Business Savings Accounts.
If you want to send wires, you have to pay for them, and you have to upgrade your account to a more robust Business Checking Account platform. From
the Forbes article, "No, JPM Isn't Banning International Wire Transfers, No Limits on Withdrawals Either", dated 10/17/2013, by reporter Halah
"Upgrade to Chase’s Performance Business Checking and there’s no cash activity limit. Plus, you get two domestic wires transfers per month
at no charge and international wires are available for an additional fee. Of course, there’s a $20 monthly fee that’s waived if you can maintain
Chase wants higher deposit balances from their clients. This is smart business, especially considering the higher capital costs required now with
Basel III capital regulations.
It actually costs a bank to maintain bank accounts that have negligible deposit balances. On average, it can cost a bank $300-500 per year or more in
operating expenses to maintain a checking account that might only have $100 in it.
Ask any Business Owner, and they will tell you that they typically have a multitude of banking options available to them, as the banking industry is
flooded with all kinds of competition for their deposit accounts - local banks, regional banks, even credit unions solicit for these deposits.
Please stop the smear campaign that Chase is not permitting Small Business Owners from sending international wires. It's not true. Chase is trying
to limit their reputation and operational risk, boost their capital reserves due to regulatory pressure, and earn a profit at the same time.
We don't bank with Chase, but a $50,000 limit on deposits/withdrawals would crush us. We buy and sell farm and construction equipment. Every month we
buy at least one truck or tractor for well over $50,000 CASH.
Listen, I hear you. This is definitely a rarity, and would qualify as the .001%. Carrying this kind of cash around on one's person is an invitation
to get robbed, and has to be done discreetly.
Businesses are moving towards more electronic forms of payment. Writing checks open your main operating account up to check fraud if the wrong
identity thief gets a copy of the check. Cash is easily stolen, by thieves or criminal employees, and difficult to track when lost. If debit card
fraud occurs, the criminals are tapping your main checking account.
Again, the trend for many small business owners is electronic currency, especially credit cards. We are fast becoming a cashless society. This is
not to say that other forms of payment have gone away, just that the trend is cashless.
The incentive for us to use cash is that many farmers and construction companies want cash and will sell cheaper to cash buyers. Evidently, those
banking with Chase will need to store large amounts of cash in house or with a separate bank.
It becomes a non-traceable transaction to the IRS as well, which makes the parties involved unaccountable for tax reporting purposes. This is where
regulators and law enforcement get nervous. Unfortunately, cash transactions place legitimate companies in the same limelight as drug dealers, thugs,
and terrorists. Right or wrong, it is what it is.
I guess we are part of your .001%; but I would think most medium size businesses withdrawal more than $50,000 every 30 days; especially those
businesses (though rare but they still do exist believe it or not) that pay their employees in CASH.
Your business is rare in the amount of cash being utilized for purchases. Some businesses have high cash volumes, mainly gas stations, grocery
stores, and convenience/liquor stores. Most businesses are not this cash-intensive.
Chase is usually out front of the banking industry when it comes to regulatory matters. As a huge bank, they are also under a ton of media scrutiny.
They don't want their name in the papers associated with criminal enterprises that use cash to hide their activities. The loss of even legitimate
cash businesses is a drop in the bucket for them.
When the Patriot Act was passed, Chase exited a lot of the small businesses that issue Money Orders and Western Union for individual customers, due to
the volume of alleged terrorist-related funding that was happening nationwide through these cash delivery channels. They were one of the first banks
to exit these businesses.
Again, when you have employers paying employees in cash, you are talking about concerns from an IRS tax reporting perspective.
17-10-2013 by CookieMonster09 because: (no reason given)