Below is Corpay's statement regarding Silicon Valley Bank (SVB)'s collapse on Friday March 10th 2023. If you have any further questions or queries regarding your Corpay payments, please reach out to the Quadient AP Support team and we'll be happy to assist.
Corpay Payment Continuity: Update on Silicon Valley Bank & Alternative Payment Provider Fifth Third Bank
To our valued customers,
Over the past few days there has been a lot of news about Silicon Valley Bank. We are writing to provide you the most recent update provided by the FDIC, as well as reemphasize the scale of our payment infrastructure, as well as maintain the continuity of your operations as you’ve come to expect.
On Friday, March 10th, the US banking system had a significant unexpected event when Silicon Valley Bank (SVB), the 16th largest bank in the US with over $200B in assets, was placed in receivership with the FDIC. In addition to being a major depository institution, SVB was also a major payment intermediary used by several payments providers including Corpay.
What is the status of my funds transferred to Corpay?
Customer funds for vendor payments are held on behalf of our customers in a separate FBO (For Benefit Of) account at SVB. FBO accounts are custodial accounts held by the bank that are generally structured as special deposit accounts where funds are segregated, not only from Corpay’s accounts, but from the bank’s other general depositor funds as well.
Sunday evening, Secretary Janet Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. You can read the Joint Statement by Treasury, Federal Reserve, and FDIC here. Based on the joint statement, depositors will have access to all of their money starting Monday, March 13th.
This assurance from the government allows your funds to process from SVB as scheduled. Additionally, we are set up to make new payments utilizing our alternative payment provider for all upcoming payments.
What has Corpay done in response to the issues with SVB?
As soon as we learned of the FDIC receivership on Friday, we stopped processing payment files submitted in AP Gateway, so some payment files submitted on Friday may not have been processed. We took this action to limit our customers' exposure to SVB's closure. Corpay continues to remain fully operational, and customers can use AP Gateway & AP Assist to submit new payment requests as normal to maintain the operations of your business.
What is the status of payments made to my vendors through Corpay? What should I tell my vendors who are expecting a payment?
The FDIC has made funds available to all depositors, but we still recommend you to encourage your vendors to process received payments via checks or Virtual Cards without delay.
Payments to vendors submitted before Friday, March 10th are currently in-flight. Based on the statement from the Federal Reserve, we expect previously submitted payment requests to continue to settle from our SVB FBO accounts over the next few days. You can submit upcoming payments to vendors through our customer portals using the normal process. We have created a separate notification that you can provide to your vendors. You can download that notification below.
How will my new payments be made through Corpay?
Corpay has multiple banking relationships with major financial institutions, and we have moved our payments from SVB to Fifth Third Bank. We are switching all payments processing to Fifth Third from today. You can submit new requests for payments through our new bank processor via standard payment file submission processes. We plan to reprocess all previously submitted, but unprocessed payment files through our new bank processor.
Our Corpay ACH Originator ID is identical to the one previously used with SVB. Fifth Third Bank is confident that ACH transactions will flow normally using this ID. However, we are providing the ID - 4270422086 - in case your bank requires the ID to be whitelisted.
How can I get more information on vendor payments that are “in-flight”?
All payments in-flight can be viewed in AP Gateway within the "History Tab" filtered by the "Processed" column. More specific details can be found by viewing the Outstanding Checks and Unprocessed Mastercard Reports. For AP Assist users, the information is located on the payments tab, filtered by "Processed". Any payment without a date has not been processed.
How can I get additional information & updates?
Please contact your account manager if you have any questions or need further information. If you do not know how to contact your account manager, please contact us at 1.877.974.1752 or email techsupport@corpay.com.
We value our relationships with our customers and recognize the trust you have placed in us as your payments provider. We remain committed to your success and appreciate the opportunity to continue to serve you.