Liability & Legality

**Frito Pie** · 06-30-2006, 05:41 PM

Have you found any issues with explaining your online business to local bankers? Originally it was a curiousity. Then it was under higher scrutiny I guess because it is an unknown entity to many offline normal lines of business.

Getting a merchant account through a local bank was more difficult as well.

Have you found any issues with local brick and morter banks understanding your online revenue stream?

**Karl89.co.uk** · 06-30-2006, 05:45 PM

I haven't tried yet, but when the time comes I think the workers in my local branch (mostly women) will have a hard time understanding how my money is made and things.

I have trouble sometimes explaining to friends and family how I make my money, so I don't know how the cashiers in the bank will understand fully.

I'll come to that bridge when I cross it though.

**imported_Ack** · 06-30-2006, 06:37 PM

I get a lot of funny questions each time I get a new teller. They always want to know how I earned this check, or why I'm wiring this money. I think some of the questions are required by law to make sure I'm not a terrorist.

**Frito Pie** · 06-30-2006, 06:41 PM

Before Google direct wired money earned through adsense, I took their check to the bank regularly. I usually use drive-through and the show inside the window was always fascinating. My teller would carefully show another teller, whisper, show another teller, more whisper. A long study of my bank account, I assume, would provide them the go-ahead to deposit the money as requested.

**Lpspider** · 06-30-2006, 07:01 PM

Quote:

Originally Posted by Frito Pie

Before Google direct wired money earned through adsense, I took their check to the bank regularly. I usually use drive-through and the show inside the window was always fascinating. My teller would carefully show another teller, whisper, show another teller, more whisper. A long study of my bank account, I assume, would provide them the go-ahead to deposit the money as requested.

*whisper*

Haha, that's great. I await the day I can tell someone a similar story. Very nice.

**RedMatrix** · 07-01-2006, 01:36 AM

The only time that happened to me (the whispers behind the glass) was when my biological father gave me a check, and we both have the same bank, same name (i have a middle initial). They were like, David is giving money to himself!

**Lpspider** · 07-01-2006, 01:50 PM

Quote:

Originally Posted by RedMatrix

The only time that happened to me (the whispers behind the glass) was when my biological father gave me a check, and we both have the same bank, same name (i have a middle initial). They were like, David is giving money to himself!

Heh, I can see that happening. It's kinda cool, but yeah. I can see how there could be some problematic situations there.

**ForgottenCreature** · 07-01-2006, 01:52 PM

Quote:

Have you found any issues with explaining your online business to local bankers? Originally it was a curiousity. Then it was under higher scrutiny I guess because it is an unknown entity to many offline normal lines of business.

Yes. Definitly.
First when I was looking to open a checking account for myself. A lot of the banks wouldn't give it to me because I was 16 at the time so I ended up going with a credit union. When I tried to explain it they just couldn't understand/believe me.

It also happened when I was trying to get a loan at my credit union. They wanted to know how I made my money, but they couldn't understand.

I get a lot of disbelief/scrutiny when anyone finds out about it (even from family members!). Most people just can't believe that the internet holds so much potential.

**beley** · 07-03-2006, 01:19 AM

We had problems explaining it in 1999, but not today. One because I've been doing this (and banking with the same bank) since 1999. Two, because online business is so big these days - as long as you don't go with the smallest bank in your town you should be okay.

Also, getting a merchant account through a local bank is probably more expensive than finding one online. Local banks (in my experience) have horrible rates and sometimes don't even have a gateway like Authorize.net or Verisign.

We went through CDG Commerce and eOnlineData for all our sites. They're both good processors.

**imported_SophMedia** · 07-07-2006, 03:55 PM

Quote:

Originally Posted by Frito Pie

Have you found any issues with explaining your online business to local bankers? Originally it was a curiousity. Then it was under higher scrutiny I guess because it is an unknown entity to many offline normal lines of business.

Getting a merchant account through a local bank was more difficult as well.

Have you found any issues with local brick and morter banks understanding your online revenue stream?

We deal strictly with WellsFargo and their Merchant services side is awesome. I've yet to ever had a problem with it and I've always had the feeling that internet-based businesses are fairly common with them.

**ltn1dr** · 07-07-2006, 05:20 PM

I already asked my bank what I need to file a bank account for my LLC, and they don't need any info about what I do really

So I guess this shouldn't be a problem for me!

**Zen** · 07-12-2006, 05:32 PM

Go with bigger national banks and you won't have a problem.

Also if you have a business bank account (rather than personal) I doubt anyone will question large deposits.

I've had the "whispers" thing happen to me before... it was never a problem though, they always took the check in the end.

Money is money. If you are earning your money in a legit way (which you should be) then any bank is going to want to have you as a customer.