The company, which is worth about $4.9 billion, found out about the issue on Oct. 22 and told the public on Thursday (Oct. 24) during its Q3 earnings release call. The company said it would be able to offset a portion of the total with $5.5 million of deposits.
Bancorp said it was trying to resolve the issue and that any funds it couldn’t get back would be considered a loss. The bank said the return occurred because of an ACH customer who didn’t fund disbursements.
Higher-ups at Bancorp did not speak freely about the return during the call, blaming the issue on a different financial institution while saying the ACH payment problem was only a small part of the company’s dealings.
“We can’t speak to it for various reasons that we can’t disclose,” said Damian Kozlowski, The Bancorp’s president and CEO.
The company had a good quarter, with earnings going up 80 percent to $20.4 million. Those numbers include increases from loans as well as fees from the company’s prepaid card services.
In other ACH news, Roadsync has added ACH functionality and direct billing to its platform. The additions provide more options for clients – including freight handlers, trucking companies and warehouses – to invoice their business customers and to accept payments.
The direct billing function allows users to track payments and charges over time and then consolidate those charges into a single invoice. Users can bill their clients directly on a weekly or monthly basis, RoadSync explained in its announcement, pointing to the example of one company handling one thousand loads every month. Historically, these companies would manually track and input transaction information into their accounting and billing platforms. RoadSync’s update allows these firms to automate the direct billing process.