Same-Day Wire Against a New Business Account Deposit
Northline Catering opened its business checking account nine days ago with a $1,200 deposit. On Tuesday at 2:15 p.m., owner Maya Okafor deposits three items: a $12,000 check from an event client, a $6,400 check from a second client, and $2,500 in cash. She wants to wire $14,000 to an equipment vendor before the 3:00 p.m. cut-off to earn a 4% early-payment discount. The account has no other activity and no holds. Branch policy for accounts open fewer than 30 days: the first $5,000 of check deposits is available the next business day; any remainder is available on the fifth business day. Cash is available immediately. Maya says both checks are “definitely good,” the clients are reputable, and she has known the branch manager for years. She asks you to release the funds anyway because the vendor will not hold the equipment.
1. Calculate the funds available for the wire at 2:15 p.m. and explain whether the assistant can complete the $14,000 transfer.
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Available today: cash is credited immediately, so $2,500 cash + $1,200 existing balance = $3,700 available. The checks total $18,400. Under the new-account policy, only the first $5,000 becomes available the next business day, and the remaining $13,400 on the fifth business day. At 2:15 p.m. on deposit day, none of the check proceeds are available.
Conclusion: the $14,000 wire cannot be completed. The shortfall is $14,000 − $3,700 = $10,300. Urgency, the customer's relationship with the branch manager, and her assurance that the checks are good do not override the availability schedule. A wire should only be sent against collected or available funds unless a properly authorized exception is documented.
2. Maya asks you to call the branch manager at home to approve an exception. What should you do, and how would you document the decision?
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Thank Maya for explaining the deadline, restate the policy in plain language, and avoid promising an exception. Offer workable options: schedule the wire for the first day the checks become available; ask the vendor to hold the equipment with a partial payment from the $3,700 available; or ask whether the vendor will accept bank-to-bank verification. If branch policy allows new-account exceptions, route the request to an authorized officer-not the manager at home unless the escalation protocol says so-and require dual approval. Document the request, the disclosures given, the balances and dates, the approver's name, and the final decision. Never release funds merely because the customer is persistent or personally known to staff.
3. Two days later the $12,000 check is returned unpaid for insufficient funds. What operational and customer-service steps follow?
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Reverse the $12,000 credit when the return is received, and notify Maya promptly using the contact method on file. Recalculate the balance; the account may become overdrawn, so explain any overdraft and fees and place a hold on remaining uncollected funds if policy permits. Do not accuse her of fraud-she may be a victim-but escalate the returned item for review because a new account, large checks, urgency, and a returned item are red flags. Document the return reason, notices, and account restrictions. Review whether a suspicious-activity report is warranted under bank procedures, and decide whether to close or restrict the account. Keep communications factual and offer a path to resolve legitimate issues.