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Yahoo
20-05-2025
- Business
- Yahoo
Never mind ‘extra' paycheck that state employees got
PIERRE, S.D. (KELO) — There's an old saying that you shouldn't spend unexpected money in one place. For thousands of South Dakota state government employees, they better not spend it all. That's because a test run by a vendor for the bank that electronically transfers paychecks to South Dakota state government employees went haywire last week. The result: Erroneous payments showed up in thousands of their personal accounts. First PREMIER Bank, which currently has the contract for state government's account, planned to recall the unplanned payments on Monday afternoon, according to Jim Terwilliger. He is commissioner for the state Bureau of Finance and Management. First PREMIER Bank performs the payment service, known as an ACH or Automated Clearing House transaction, for the South Dakota Office of Treasurer. The federal Consumer Protection Benefit Bureau on its website describes an ACH transaction as an electronic money transfer made between banks and credit unions for all kinds of purposes, including direct deposit of paychecks. State Treasurer Josh Haeder explained to KELOLAND News why state government employees wound up being mistakenly paid twice for the same pay period. 'A vendor who processes ACH transactions for First PREMIER Bank performed a backup and recovery test, which resulted in a duplicate file posting. This impacted many banks across the country. First PREMIER is working with the vendor, who expects the transaction errors to be reversed later today,' Haeder said Monday morning. Terwilliger outlined the payroll process that state government uses. He said employees enter timesheets, then the supervisors approve them. From there the timesheets go to the state Bureau of Human Resources and Administration or the agency's human resources staff be be processed. After those time records are authorized, they're submitted to the State Auditor's office, where the payroll is run. State Auditor Rich Sattgast explained the next steps. 'Once we run payroll, which includes verifying and correcting all payroll data sent to OSA (Office of State Auditor) by BHRA, we send the bank file to First PREMIER, who then sends it to their vendor for payment,' he said. According to Sattgast, the vendor that services the payment process through the state bank performed a test on Thursday, May 15, to ensure that their backup system was working properly. He said the test caused a glitch that resulted in the erroneous duplicate payment. 'It affected 9,238 employees, which affected 12,136 deposits as many employees have their pay going to more than one bank account,' Sattgast said. He gave the example of two married state government employees having their pay going to one joint account, as well as to a separate account for personal use. Sattgast said that neither he nor his staff could recall such an event in the past stretching back at least 39 years — that's how long the most senior-member of his payroll staff has been with the office. Terwilliger said that First PREMIER had notified the Office of the State Treasurer and the expectation was that the duplicate transactions would be reversed late Monday afternoon. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Business Wire
08-05-2025
- Business
- Business Wire
First Internet Bank and Increase Receive American Banker's
FISHERS, Ind.--(BUSINESS WIRE)--First Internet Bank and Increase were named a winner in American Banker 's inaugural 2025 Innovation of the Year awards, achieving victory in the Payments category. The awards honor the most influential technology-focused innovations. First Internet Bank and Increase joined forces to deliver High-fidelity ACH – a tech solution that brings greater speed and reliability to Automated Clearing House (ACH) transactions. 'Innovation doesn't have to mean disruption; it can mean simply improving our execution of the basics. Our customers look to us for reliability, transparency and flexibility,' noted Darragh Buckley, Founder and Chief Executive Officer for Increase. 'Little details, like showing network events together in a timeline, give operators end-to-end visibility, so that payroll, rent and bill payments arrive exactly on time. We're lucky to work alongside First Internet Bank, who share our obsession with customers.' 'From the introduction of branchless banking services more than 25 years ago to our current innovations in electronic funds transfer, we've always been at the forefront of change,' said Nicole Lorch, President and Chief Operating Officer at First Internet Bank. 'Our partnership with Increase demonstrates our commitment to delivering new products and services that can – and will – continue to revolutionize the banking industry.' The High-fidelity ACH project provides end-to-end visibility for users to know precisely when payments are submitted and funds are available, providing complete transparency and improved ACH reliability for scaled platforms. For more information about First Internet Bank please visit To learn more about Increase, visit About First Internet Bank First Internet Bank opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. With assets of $5.8 billion as of March 31, 2025, the Bank provides consumer and small business deposits, consumer loans and specialty finance services nationally. The Bank also offers commercial real estate loans, commercial and industrial loans, SBA financing and treasury management services. Additional information about the Bank, including its products and services, is available at The Bank is a wholly-owned subsidiary of First Internet Bancorp (Nasdaq: INBK). First Internet Bank is a Member FDIC. About Increase Increase is an API-first banking core and issuer processor built from the ground up for software developers. Founded in 2019 by Darragh Buckley, Increase provides financial technology companies with direct connections to the Federal Reserve, Visa, Check21, and The Clearing House. By offering network-level visibility and granular control over money movement, Increase enables customers to build more reliable, transparent, and programmable financial products. Banks work with Increase to power innovative programs for leading companies such as Ramp, Gusto, and Pipe.
Yahoo
08-05-2025
- Business
- Yahoo
First Internet Bank and Increase Receive American Banker's Innovation of the Year Award
FISHERS, Ind., May 08, 2025--(BUSINESS WIRE)--First Internet Bank and Increase were named a winner in American Banker's inaugural 2025 Innovation of the Year awards, achieving victory in the Payments category. The awards honor the most influential technology-focused innovations. First Internet Bank and Increase joined forces to deliver High-fidelity ACH – a tech solution that brings greater speed and reliability to Automated Clearing House (ACH) transactions. "Innovation doesn't have to mean disruption; it can mean simply improving our execution of the basics. Our customers look to us for reliability, transparency and flexibility," noted Darragh Buckley, Founder and Chief Executive Officer for Increase. "Little details, like showing network events together in a timeline, give operators end-to-end visibility, so that payroll, rent and bill payments arrive exactly on time. We're lucky to work alongside First Internet Bank, who share our obsession with customers." "From the introduction of branchless banking services more than 25 years ago to our current innovations in electronic funds transfer, we've always been at the forefront of change," said Nicole Lorch, President and Chief Operating Officer at First Internet Bank. "Our partnership with Increase demonstrates our commitment to delivering new products and services that can – and will – continue to revolutionize the banking industry." The High-fidelity ACH project provides end-to-end visibility for users to know precisely when payments are submitted and funds are available, providing complete transparency and improved ACH reliability for scaled platforms. For more information about First Internet Bank please visit To learn more about Increase, visit About First Internet Bank First Internet Bank opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. With assets of $5.8 billion as of March 31, 2025, the Bank provides consumer and small business deposits, consumer loans and specialty finance services nationally. The Bank also offers commercial real estate loans, commercial and industrial loans, SBA financing and treasury management services. Additional information about the Bank, including its products and services, is available at The Bank is a wholly-owned subsidiary of First Internet Bancorp (Nasdaq: INBK). First Internet Bank is a Member FDIC. About Increase Increase is an API-first banking core and issuer processor built from the ground up for software developers. Founded in 2019 by Darragh Buckley, Increase provides financial technology companies with direct connections to the Federal Reserve, Visa, Check21, and The Clearing House. By offering network-level visibility and granular control over money movement, Increase enables customers to build more reliable, transparent, and programmable financial products. Banks work with Increase to power innovative programs for leading companies such as Ramp, Gusto, and Pipe. View source version on Contacts Contact Information: Investor Relations:Paula DeemerDirector of Corporate Administration(317) 428-4628investors@ Media for First Internet Bank:PANBlast for First Internet BankRyan Heckerfirstib@ Increase Media Relations: press@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-03-2025
- Business
- Yahoo
Banks say court's ‘novel' ruling upends wire transfer business
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. A New York federal court's recent ruling that a wire transfer can be cleaved into component parts – with consumer transfers subject to the Electronic Funds Transfer Act – has alarmed banks, which are seeking a quick review by a federal appeals court. The banks argue the court's finding that consumer-initiated transfers fall within the EFTA, and not a less-stringent regulation they've been using, introduces uncertainty that could require costly changes to their operations or cause banks to restrict consumers' access to online wire transfers. District Judge J. Paul Oetken ruled Jan. 21 on Citibank's motion to dismiss the complaint filed last year by New York Attorney General Letitia James. He granted parts of the motion, but upheld the state's view that the EFTA covers consumer wire transfers that use a bank's electronic platform. Citibank and a half dozen industry groups have asked Oetken to allow for a review of his ruling and central questions of law in the case before it proceeds further. Oetken has set an initial conference for March 13, according to court documents. Banks have operated for decades under what the industry's brief calls a 'settled legal regime' that wire transfers do not fall under the EFTA's purview. That law, for one thing, would impose greater regulatory burdens and costs on the industry. 'The Act specifically requires financial institutions to provide lengthy written disclosures to certain customers, investigate and resolve allegedly unauthorized electronic fund transfers, and, in many instances, assume liability for the bulk of consumer losses stemming from such unauthorized transactions,' attorneys at the law firm Katten wrote last month in a client advisory. The New York AG sued Citibank in Jan. 2024, alleging that the bank failed to impose robust data security and anti-breach practices, costing bank customers millions of dollars in losses to fraudsters. The bank also had inadequate monitoring systems and did not properly investigate fraud claims or respond quickly to customer complaints, according to the lawsuit. The suit seeks to collect restitution for fraud victims over six years, penalties and disgorgement. The Consumer Financial Protection Bureau filed a brief last May supporting the state's legal position. Wire transfers involve a financial institution sending funds to another financial institution on a wire network like Fedwire or the Clearing House Interbank Payments System (CHIPS), unlike traditional electronic fund transfers to or from a customer account, the Katten lawyers wrote. Citibank and its peers argue that the EFTA doesn't apply because of a provision within the Uniform Commercial Code, Article 4A, governing wire transfers. The court's finding 'would require banks to upend their wire-transfer programs or risk additional legal liability for the thousands of consumer wire transfers that they execute every day,' Citibank said in its Feb. 18 motion for appellate review. 'At a minimum, appellate guidance is warranted before Citibank and the entire financial-services industry are forced to make such a drastic change based on the NYAG's novel reading of the statute.' The 1978 EFTA limits consumer liability for unauthorized electronic fund transfers to $500 or less if a customer notifies their financial institution of the suspect transaction within 60 days. In his order, Oetken agreed with the state's contention that a wire transfer is composed of three separate and independent fund transfers, including the consumer's initial instruction on a bank's electronic platform to transfer funds from his or her account. The case holds 'profound consequences for an industry that has organized around what has been understood for decades to be a settled legal regime,' six banking industry groups wrote Feb. 25 in their amicus brief, supporting Citibank's effort to have the district court allow an immediate appeal to the Second Circuit. 'The Court's decision has prompted significant uncertainty and will impose steep costs on Amici's members as they consider whether and how to reorganize their online funds transfer offerings in the face of precedent that now conflicts across jurisdictions.' Banks will face further costs if the court's view is reversed 'years from now' on appeal, according to the brief, whose filers include the American Banking Association, the Clearing House Association and the New York Bankers Association.
