Bank account out of money

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Steve Sokolowski
Posts: 4571
Joined: Wed Aug 27, 2014 3:27 pm
Location: State College, PA

Bank account out of money

Post by Steve Sokolowski » Fri Nov 26, 2021 8:06 am

Unfortunately, our bank account with the ACH payment processor is out of money. It takes 9 days from the time we initiate a bitcoin sale at Bittrex to when the money moves through multiple accounts and finally reaches a customer. For the first week, we used a $5,000 buffer, but ACH demand increased so quickly that we increased that buffer to $10,000, and now that buffer appears insufficient even before the $10,000 arrived. The fact that there will only be four out of these 9 days in which banks are actually working is contributing to the issues.

I'm going to increase to a $20,000 buffer by moving additional money now. We expect the $10,000 to arrive at the account on Tuesday, which will satisfy all owed payouts up to that point - but there will likely be an additional shortfall once we again run out of money before the $20,000 buffer is established. Thanks for your understanding while we deal with the slowness of the legacy banking system.
Alynn
Posts: 116
Joined: Wed Mar 03, 2021 12:40 pm

Re: Bank account out of money

Post by Alynn » Fri Nov 26, 2021 10:10 am

I know y'all have things going on and it's not the end of the world. But moving around that kind of money always makes me thing, Oh noes, we broke!

Business wise, Thanksgiving week, and Christmas/new years are just gonna be slow. Money will show when it shows.
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Steve Sokolowski
Posts: 4571
Joined: Wed Aug 27, 2014 3:27 pm
Location: State College, PA

Re: Bank account out of money

Post by Steve Sokolowski » Fri Nov 26, 2021 10:50 am

This amount of money is nothing - if we get even 10% of the pool using ACH payouts, the buffer is going to need to be 9x the daily payouts, or $100,000.

When you get up to that size buffer, we are taking a risk for you because we need to start pre-selling coins we expect to mine. If the price of the coin enters a mania before the ACH payouts are earned 9 days later, we could incur huge losses buying those coins at the high price if we don't find those blocks. Customers being shielded from the opposite risk - that coins fall in price before they can sell - is one of the advantages of earning dollars in real time with us.
robinsoz
Posts: 18
Joined: Wed Jan 16, 2019 10:05 am

Re: Bank account out of money

Post by robinsoz » Sat Nov 27, 2021 3:16 pm

Steve Sokolowski wrote: Fri Nov 26, 2021 10:50 am This amount of money is nothing - if we get even 10% of the pool using ACH payouts, the buffer is going to need to be 9x the daily payouts, or $100,000.

When you get up to that size buffer, we are taking a risk for you because we need to start pre-selling coins we expect to mine. If the price of the coin enters a mania before the ACH payouts are earned 9 days later, we could incur huge losses buying those coins at the high price if we don't find those blocks. Customers being shielded from the opposite risk - that coins fall in price before they can sell - is one of the advantages of earning dollars in real time with us.
In my opinion it would not be wise to take any significant financial risk on this. A better solution would be to just inform customers that ACH payouts may take several days to post because of the realities of the mechanics of the system. For customers who are so desperate for cash that they need to be paid tomorrow, perhaps some system could be programed that docks their future earnings if the markets move in such a way that the pool loses money in order to provide them with next day payouts.
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