Overview
When an account is closed with a remaining balance, the final balance may be handled in one of three ways depending on the balance amount:
| Account Balance at Closure | What Happens |
|---|---|
| $1 or less | Funds are automatically transferred to the organization’s revenue account. See Account Low Balance Closure. |
| Greater than $1 | A check is mailed to the business or individual address on file. |
| Negative balance | Accounts with a negative balance for more than 60 days will be automatically closed based on the default settings. If an account with a negative balance is closed, the balance will be considered a loss and will be covered from your reserve account. |
An account closure check may also be called a remaining balance check or final balance check.
When a Check Is Issued
A check is issued when an account is closed by Unit/Org with a positive balance greater than $1.
For business accounts, the final check is sent:
- To the business address on file
- In the business name
Address verification documents - approved document list.
Check Timeline
In most cases, the final balance check is processed and mailed a few weeks after account closure.
For accounts eligible for check automation, checks are automatically created on the 8th day after the account has been closed.
Checks become void after 180 days.
Automated Check Issuance
Check automation has started for the following banks:
- Thread
- Pacific West
- i3 Bank
- LSB - Lincoln Savings Bank
Automation will only issue checks for accounts closed with one of the following closure reasons:
- By Customer
- Program Change
- Breach of Terms and Conditions
- No Account Activity
The status of the check will appear in the Check Payments section of the applicable account.
Banks or Closure Reasons That Require Manual Review
Banking Ops must manually review accounts closed for the following reasons:
- Fraud
- By Bank
- Negative Balance Closure
- Deceased End User
Plus TransPecos Bank.
There is no specified timeline for checks related to these closure reasons because additional review, and sometimes bank outreach, may be required.
How to Check the Status of an Account Closure Check
When an account owner asks about their remaining balance or check timeline:
- Open the account in the Dashboard.
- Confirm the account was closed.
- Check the closure date.
- Check the account balance at closure.
- Check whether any adjustments were already created on the account.
- If adjustments exist, the customer may have been included in a previous check batch.
- If no adjustments exist, ask Banking Ops when the next batch of checks is expected.
- For automated checks, review the Check Payments section of the account.
Comments
0 comments