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SF payroll firm Rippling has to delay payouts after Silicon Valley Bank collapse

sfgate.com

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Re: SF payroll firm Rippling has to delay payouts after Silicon Valley Bank collapse

#31

Post by wil421 »

readthenotes1 wrote: post #16
Arrath wrote: post #2

Oof, heavy hit for people relying on those paychecks being timely. Decent of Rippling to cover overdraft fees of those affected, at least.

Can you imagine the conversation this morning? "Hey, your paycheck won't be coming today and I need you drop what your doing and make an emergency change to our apis so that we can use JP Morgan Chase. We're going to have to skip all the usual test environments."

Someone put an extra comma in a CSV file and payroll was delayed for about 20k US employees who did not get paid timely. They covered any overdraft fees.

I would’ve been in tears if I was the dev but you have to pick yourself up and move on. If a single dev could’ve done this there’s a problem with the process and organization.

Re: SF payroll firm Rippling has to delay payouts after Silicon Valley Bank collapse

#32

Post by ummonk »

The article headline is clickbait. They're immediately doing payouts through JP Morgan Chase now; the only delay is because some payouts were in flight when they got stuck in SVB, so if a payout was started via SVB a few days ago and was going to arrive today (because bank transactions aren't instantaneous), the new payouts will take a few days to arrive via JP Morgan Chase.

Re: SF payroll firm Rippling has to delay payouts after Silicon Valley Bank collapse

#33

Post by berkle4455 »

vladaionescu wrote: post #14

This article is slightly click-baity. The payments are delayed in some cases, not held out altogether. From what I'm hearing so far, Rippling has changed banks over night and has instructed all clients to update the ACH filters accordingly. Only payroll cycles caught in-between will be affected, but even then they are delayed, but not held.

> delayed

If the money was sitting in an account at SVB, which it was, it’s at risk.

Re: SF payroll firm Rippling has to delay payouts after Silicon Valley Bank collapse

#35

Post by piperswe »

JumpCrisscross wrote: post #21
hackernewds wrote: post #18

Earlier quoted context omitted.

Who will be liable? The employer? Rippling?

> Who will be liable? The employer? Rippling? To the employee, the employer. To the employer, Rippling. It's wild that, as a payment processor, they didn't have redundant rails.

It's hard to make 100% timeliness guarantees when the courier that's carrying money from one place to another dies on its way. How would they have a redundant courier?

Re: SF payroll firm Rippling has to delay payouts after Silicon Valley Bank collapse

#37

Post by JumpCrisscross »

piperswe wrote: post #35
JumpCrisscross wrote: post #21

Earlier quoted context omitted.

> Who will be liable? The employer? Rippling? To the employee, the employer. To the employer, Rippling. It's wild that, as a payment processor, they didn't have redundant rails.

It's hard to make 100% timeliness guarantees when the courier that's carrying money from one place to another dies on its way. How would they have a redundant courier?

> would they have a redundant courier?

Two or more banks. Process through both on a regular basis. Switch if something goes wrong.

Re: SF payroll firm Rippling has to delay payouts after Silicon Valley Bank collapse

#38

Post by 0cf8612b2e1e »

ummonk wrote: post #32

The article headline is clickbait. They're immediately doing payouts through JP Morgan Chase now; the only delay is because some payouts were in flight when they got stuck in SVB, so if a payout was started via SVB a few days ago and was going to arrive today (because bank transactions aren't instantaneous), the new payouts will take a few days to arrive via JP Morgan Chase.

So people are not receiving their promised money on time? Sounds like the title is accurate. Not everyone has the float to handle an unexpected delay in money. People can also suffer liquidity events.

Re: SF payroll firm Rippling has to delay payouts after Silicon Valley Bank collapse

#39

Post by jmvoodoo »

FireBeyond wrote: post #29
jmvoodoo wrote: post #25

Earlier quoted context omitted.

We just received this from Rippling: Hi Rippling Customer, Yesterday afternoon, Rippling learned that Silicon Valley Bank (SVB) had solvency challenges. We have been working with SVB to ensure timely payments to our customers’ employees. However, this morning we learned that the FDIC had stepped in and taken control of SVB. We are reaching out to you because you have a payroll that has already been processed for 3/15…

> We ask that you please reach out to your bank and request that your bank return any ACH transactions debited from your account by Rippling into SVB under the premise that the transaction(s) are unauthorized, since the bank has ceased operations and is unable to honor the payments. This seems a little ... odd. To be very clear, I'm not on the bank's side at all... but if the ACH is already debited, then your bank wo…

Right now, the funds are still showing at least in our online portal. I will be visiting the branch tomorrow and hopefully can prevent the transfer from completing.

Not a fun email to receive either way.

Re: SF payroll firm Rippling has to delay payouts after Silicon Valley Bank collapse

#40

Post by [deleted] »

piperswe wrote: post #35
JumpCrisscross wrote: post #21

Earlier quoted context omitted.

> Who will be liable? The employer? Rippling? To the employee, the employer. To the employer, Rippling. It's wild that, as a payment processor, they didn't have redundant rails.

It's hard to make 100% timeliness guarantees when the courier that's carrying money from one place to another dies on its way. How would they have a redundant courier?

[deleted]
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