Are you receiving SNAP/EBT benefits? The Expensify.org/SNAP-VAX campaign is live and accepting new members. Learn more about receiving $50 for submitting a SNAP receipt and $50 for getting your COVID-19 vaccine here and join today!
Money flow during the ACH reimbursement process and same-day ACH transfers
I have read the "Deep Dive - ACH Reimbursement Timing" help doc and have a question about what happens to the money for a reimbursement from the time it leaves my company's bank account until the time it is deposited into an employee's bank account. This statement in the doc is somewhat vague: "Expensify is not a bank, so we do not issue reimbursements ourselves. Rather, your company will initiate a reimbursement from their own bank account, and we will facilitate the transfer of those funds by first withdrawing the funds from them, and then, once those funds are guaranteed, sending them to the recipient's account." When Expensify "withdraws the funds", where does the money live from that point until the funds are sent to the recipient's account? Is someone earning interest on the money during that time period?
The document also talks about "risk" and Expensify trying to protect against fraud. Shouldn't that risk be assumed by the company and not by Expensify? So, for example, if I tell Expensify to do immediate, same-day ACH transfers for reimbursement for all approved expenses, shouldn't Expensify's role in this transaction be simply to tell my company's bank to move funds from that account to the recipients account? Same-day ACH transfers have been around for a few years now, why doesn't Expensify use that mechanism to facilitate reimbursements rather than taking the 3-5 business days that traditional ACH transfers take?