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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

#71

Post by OJFord »

FireBeyond wrote: post #62
maxerickson wrote: post #59

Earlier quoted context omitted.

Aren't they telling their customers to cancel transfers into SVB? (seems like the flow of funds is customer bank -> SVB -> [maybe more] -> payroll payees) Seems likely enough that those transfers will fail to clear in a couple days, not bad to get ahead of that if possible.

Right, but that's my point, not necessarily agreeing with the motivation or such. If the transfer went through before the FDIC shuttered them this AM, it could be argued that the transaction was entirely authorized _at the time_ the ACH debit occurred. Hopefully banks will sympathize, but I don't know that you can say "the bank was forcibly closed the day after this ACH transaction, so it's unauthorized, because I in…

Regardless of the correctness or legality of the advice, it's a bit odd to wade in and give it at all isn't it? Why not steer well clear? Seem friendly/helpful and buy goodwill I suppose?

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

#72

Post by nighthawk454 »

parker_mountain wrote: post #70
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.

"has to delay payouts" -> "the only delay is because" so there are in fact delayed payouts.

It’s misleading at least. At best this means _some_ payouts are delayed, but definitely still coming. Given the rest of the news today that’s practically a non-issue.

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

#73

Post by nighthawk454 »

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.

> Clickbait … is designed to attract attention and to entice users to [engage with] content, being typically deceptive, sensationalized, or otherwise misleading. - Wikipedia

This is literally clickbait. Y’all need to chill. It’s sensationalized and misleading relative to the severity of todays events.

The title is “technically correct” but it sensationalizes it for sure. Reading that title you expect Rippling to be going under or severely impacted. Which it sounds like so far they’re not (again relatively).

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

#75

Post by dccoolgai »

VirusNewbie wrote: post #68
0cf8612b2e1e wrote: post #38

Earlier quoted context omitted.

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.

There’s a huge difference between “oops we had a payroll issue it will be there tomorrow” and “oops lol our money is gone we can’t make payroll, maybe we can get a loan next week”.

If you were an employee at a typical startup, would you be able to tell the difference? Because leadership is never _that_ transparent with the rank-and-file around these kinds of things. I've seen it happen (thankfully never to me) - over and over again they would say "whoops, it will be there next week". Two months later people - one by one - just stop showing up...

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

#76

Post by dahdum »

OJFord wrote: post #69
n0us wrote: post #41

Earlier quoted context omitted.

So it’s literally not clickbait and payments were delayed…

We're talking about a 1-2 working day delay, depending on recipient bank. You wouldn't bat an eyelid if it weren't already in the news, I've certainly had pay delayed or incorrect longer, for non-big-news reasons. The title is perhaps yes strictly speaking accurate, but it's still clickbait, it deliberately implies trouble pouring on an already flaming fire, when actually this sounds like an extremely minor symptom -…

It’s overblown but pretty relevant news. SVB is the cause, and there could be more before it blows over. 1-2 business day delay for highly paid salaried workers usually isn’t a big deal but it can really turn the screws on lower paid hourly staff like their warehouse workers. They are getting mailed checks, and may then have check clearing delays. They could end up with missed payment fees, overage fees, credit card advance fees, or payday loan fees just trying to feed their family over the weekend. Payroll is always serious. SVB’s mismanagement has real consequences for real people, and reporting those is worthwhile.

All that said, Rippling is doing everything they reasonably can and I’m sure they’ll make their workers whole.

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

#77

Post by ummonk »

dccoolgai wrote: post #75
VirusNewbie wrote: post #68

Earlier quoted context omitted.

There’s a huge difference between “oops we had a payroll issue it will be there tomorrow” and “oops lol our money is gone we can’t make payroll, maybe we can get a loan next week”.

If you were an employee at a typical startup, would you be able to tell the difference? Because leadership is never _that_ transparent with the rank-and-file around these kinds of things. I've seen it happen (thankfully never to me) - over and over again they would say "whoops, it will be there next week". Two months later people - one by one - just stop showing up...

"I've seen it happen (thankfully never to me) - over and over again they would say "whoops, it will be there next week". Two months later people - one by one - just stop showing up..."

That's the kind of delay one expects from reading the headline and why it is clickbait. In actually the payouts are already on their way via JP Morgan Chase and will have arrived by Monday for everyone.

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

#78

Post by jjulius »

nighthawk454 wrote: post #73
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.

> Clickbait … is designed to attract attention and to entice users to [engage with] content, being typically deceptive, sensationalized, or otherwise misleading. - Wikipedia This is literally clickbait. Y’all need to chill. It’s sensationalized and misleading relative to the severity of todays events. The title is “technically correct” but it sensationalizes it for sure. Reading that title you expect Rippling to be g…

I mean, a headline is supposed to entice one to read the article...

I'm also curious what about the headline sensationalizes the story. SVB caused a "ripple" in Rippling's operations, payments were delayed. Where's the sensation?

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

#79

Post by impulser_ »

colechristensen wrote: post #46
impulser_ wrote: post #36

Do businesses not do any risk assessments to prevent things like this from happening? Especially a business that is providing a critical service to businesses. Why are they using a regional bank to handle this?

Considering the value of SVB stock until yesterday, no reasonable risk assessment would have found anything actionable until yesterday. Payroll being delayed a few days is indeed annoying, but it's not the end of the world.

Yeah but you have a lot of companies who money is stuck with SVB. Not one of them decided to check out a financial statement for the company holding their money.

I checked out their financial statements and they are pretty incredible.

They grew their HTM portfolio from ~10b to ~100b in two years. Then you had the Fed come out and say hey we are increasing rates and we aren't going to stop.

No one at these companies well like hey maybe this will become a problem and we should protect our cash.

Roku had 25% cash at this bank. Why?

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

#80

Post by ummonk »

briffle wrote: post #54
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 if a payout was started via SVB a few days ago and was going to arrive today (because bank transactions aren't instantaneous) FedNow instant payments are supposed to go live this spring/summer. Feels like it should have been 10 years ago.

It's frustrating that we don't even have one day settlement for most transactions.
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