> Mercury itself is not FDIC insured. If Mercury collapses, your money is not insured.
How is it not false advertising on the part of Mercury to describe their accounts as FDIC-insured if this is the case?
How is it not false advertising on the part of Mercury to describe their accounts as FDIC-insured if this is the case?
Regarding regulators and obligation -- in any of these relationships the bank is ultimately responsible/liable for any AML/TFL, money, etc... irregularities. A BaaS provider can effectively do everything wrong to the point its underlying bank is shut down, and switch to a different partner bank.
Ugh. The bankruptcy court has to bring in forensic auditors, they try to reconstruct who owns what, and it takes a long time to sort things out. The bank's responsibility is only to have the total amount on deposit available to the bankruptcy court.
This is a really good argument for not using such a service.