Every eCommerce business needs a safe, reliable way to manage cash flow and ensure the longevity of their company. That’s why keeping funds in an FDIC-insured bank is such a crucial part of any growing business. Here, we’ll cover what FDIC insurance means and how it can benefit your eCommerce business.
FDIC stands for Federal Deposit Insurance Corporation, an organization created by Congress in 1933 that ensures cash deposits at banks are protected up to $250,000 per depositor. In other words, if a financial institution fails due to certain reasons outside of your control (such as fraudulent activities or bankruptcy), you won’t lose access to your money–though some areas may be considered “higher risk” than others. This is especially important for the many businesses involved in eCommerce, since the inherent digital interface of the internet often brings risks that require caution when it comes to managing finances.
When you deposit money into an FDIC-insured bank account, you’re putting trust in the bank and its ability to protect you against any unexpected losses due to fraud or insolvency. It’s not just about protecting yourself from fraud—having access to secure funds also prevents minor cash flow issues from becoming major headaches later on down the line. When running a small eCommerce business or startup, cash flow is often tight and having access to reliable ways of managing funds are important features that cannot be ignored.
FDIC insurance also gives eCommerce businesses peace of mind when it comes to moving money around. Generally speaking, moving funds between two different banks takes time (usually two days or more) while transfers inside the same financial institution can take only 1 day or even hours. Having access to secure funds removes some of this worry as money moves because any transactions will be protected against accidental theft or loss due to unforeseen circumstances.
Viably’s mission is to ensure that the funds from your eCommerce business remains safe by partnering with an FDIC-insured bank, Piermont Bank. With this added layer of protection comes an increased sense of security and peace of mind that eCommerce business owners can give themselves one less thing to worry about when managing their finances.