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by MaxGabriel 1191 days ago
"other banks" was a bit ambiguous, here's the list of banks for our partner Evolve: https://www.getevolved.com/openbanking/fdic-mercury/

You as the customer are the owner of record on the funds. The accounts are held by our partner banks at these other banks, as your agent and custodian (something like "Evolve Bank and Trust for benefit of Acme Corp).

The FDIC insurance applies to the business holding the funds; it is definitely not insuring Mercury itself.

You do need to use Mercury to withdraw the funds; we still run all the authorization and compliance rules around this, and there isn't a facility for you to go into eg United Texas Bank and ask for your money. That said, if Mercury were to go bankrupt tomorrow, your funds are held by our partner banks who have full KYC/KYB info on you would be able to access all your funds.
1 comments
chernevik 1191 days ago
> you would be able to access all your funds

How fast and how?

You might consider providing a "living will" document that keeps your clients up-to-date on where the $$$ are and how they access them. If I'm using something like this I would want to be sure I can make payroll the day after you vanish.

(Not a potential customer or cash management expert, prioritize accordingly.)

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jqpabc123 1191 days ago
How fast and how?

My best guess, not until OK'd by a bankruptcy judge. You may have a strong claim on the funds but so does Mercury --- hence the fact stated above that you can't withdraw without their approval. On the other hand, they may be able to withdraw without your approval. A bankruptcy judge is the only one who could override their claim and release these funds to you.

Remember, SVB was an FDIC bank. The reason depositors are able to withdraw money today is because of the quick actions of the FDIC.

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chernevik 1191 days ago
That doesn't sound even remotely close to right.

If the client is the owner of record Mercury hasn't any claim at all.

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jqpabc123 1191 days ago
My guess, this is a trust/FBO co-mingled type account of some sort.

Only Mercury knows the exact structural details but based solely on their statement above, they have significant control and claims that you can't easily override yourself.

I wouldn't count on this all being resolved quickly in the event of a bankruptcy.

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