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Mercury new banking partner switch

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Alexmorgan

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Jun 7, 2023
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Seems mercury is switching away from Evolve bank and Trust and Choice bank to Column N.A bank

This switching lead to changing your account and Routing number

The case here that there will be new policies for and new KYC with the new banking

I guess mercury did this because of the disturbance that Choice and Evolve banks are making

The case here is that there is a transition period with deadlines for this which making me nervous and a disturbance in financials of our companies

Is there anything i need to be worried about here?
 
As far as I know, the transition is not from Choice Financial, only from Evolve.‌

Evolve had a large scandal with the Synapse Brokerage bankruptcy, and from what I have‍ seen, it is experiencing correspondent issues as a result – and also losing trust among⁠ its existing FinTech client base.

With the clearing issues, it would cause problems on international⁤ wires to continue with Evolve. My expectation is that they will phase it out as⁣ a banking partner fully.

My opinion is that you don't need to worry, just accept⁢ the migration to the new bank.
 
Mine is with Choice︀ if what you saying then i should be fine

But they sent me Email to︁ update my information so i guess its about people who are not US citizens and︂ living over seas owned companies
 
I did the task of reading (asking AI to summarize the agreement) and you must‌ worry only if:

- You are a sole owner
- You are a foreign company‍ (not only a registered LLC, but with no commercial presence in the USA)
 
You can just wait to see what comes from Mercury, AI won't⁤ help you!
 
Coffezilla talks about the evolve scandal below. And mentions Mercury walked away the same day‌ that shortfalls were being discussed between Synapse and evolve ca#"!.






P.S Personally I would keep‍ no money in any of these US fintechs. Even Evolve bank came off sounding shady⁠ as hell ca#"!.
 
Coffeezilla video is unfortunately a very⁤ inaccurate rendition of events.

Simply Synapse moved funds between client accounts at Evolve and their⁣ own licensed brokerage. When you are a client of a broker, you are not insured⁢ by the FDIC (obviously). The problem was that Synapse terms allowed them to do, but︀ they misinformed clients by not including these movements in the statements and issuing the statements︁ displaying only Evolve details. It invested the funds through its brokerage (undescribed how this was︂ done, but with the unknowing consent of clients). There are more in-depth facts to this︃ case but frankly I don't feel like rambling on for paragraphs about the exact scenario︄ 🙂 Anyway, the point to consider is that Evolve has the reserve funds for the clients,︅ only it does not know who it owes – and the other banks are saying︆ it owes more than it does because Synapse supplied these incorrect statements that did not︇ account for it sending funds to the pooled accounts of its brokerage. Evolve could have︈ made mistakes in transferring Mercury at Synapse to Mercury's own accounts, but these are solely︉ accusations, and I find it unlikely – because Synapse itself stated that there were separate︊ custody accounts for Mercury funds (when Mercury went through them) due to the large sums︋ being held – if Synapse was placing other FinTech's money in the Mercury safeguarding, this︌ is again their fault.

Personally, I know some happy BaaS clients of Evolve and the︍ bank seems decent except for issues with SWIFT clearing. High reserve account requirements, though.

I think US FinTechs are not risky, but you have to see where they are holding︎ funds. For example, some hold everything in T-Bills, some are using Pershing custody (very reliable️ – BNY Mellon), some are holding it as just general USD with the backing bank;‌ in the worst case, they are doing what Synapse does, sweeping deposits to their own‍ brokerage.
 
I just did the switch and Mercury now is asking for proof of US address‌ for Non-Resident LLCs, just like Wise. Therefore I can't use Mercury anymore.

Any other reliable‍ alternative ?
 
I was migrated without problems.

They ask for commercial substance in the USA, that is,‌ invoices that prove that you work with US clients. I also provided the address of‍ my leased company, not the address of the registered agent as others suggest.

Didn't have⁠ any other problems.
 
where did you get that from ?

what you listed is that all you had to‌ provide or is there more?
 
I use physical address to get an office address. It just costs 100 a year.‌ However, there are other services that offer phone numbers.

Was asked about the source of‍ my money and invoices showing my clients in US
 
What they asked me is a a lease or a bill where both my name and⁠ the llc's name show on the same contract/bill.

You?
 
No, I was always clear about my location outside the USA.

I've been asked every‌ 6 to 8 months to confirm the owners, their locations and the commercial links of‍ the company to the US.
 
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