Thursday, September 04, 2014

Uber direct deposits are delayed due to bank holiday

September 4, 2014

As Uber Partners probably know by now, direct deposits were delayed and won't enter bank accounts until Friday morning. This delayed deposit will likely cause Partners overdraft issues such as returned checks on previous agreements, NSF fees and unpaid bills. It really depends on their bank policies.

One Partner submitted a check to be cashed on Wednesday for car repairs. Because this check is set to clear today, this driver will struggle to get on the road.

ActiveHours learned of this delayed deposit and will debit Uber drivers for borrowed funds on Friday. No account holders will have access to additional funds. Requested deposits against earnings tomorrow won't enter bank accounts until Monday morning. For the most part, deposited funds don't post on weekends. Traditionally, funds would be deducted on Thursday morning and Uber members could submit a request by 4pm PST and pm EST for funds to be deposited on Friday morning.

This notification could have come sooner to warn Partners that direct deposits would be delayed until Friday morning. However, Partners were informed on Wednesday morning via text of this deposit delay. It's understandable that bank holidays create a domino effects, but one day can makes a huge difference.

In this case, the one day delay in deposits will keep drivers off the road. They can't receive ActiveHours deposits until Monday morning. Their accounts will accrue fees. Checks and credit card payments will either get returned or cause bank accounts to go negative. Unfortunately, drivers who are on empty will have to wait until tomorrow to drive.

Proper courtesy is to notify Partners on Tuesday of this direct deposit delay. It's easy to send a text message a day before to tell Partners to wait another day. Nevertheless, it is not easy to inform creditors and banks that a delayed deposit has overdrawn a bank account and bills won't get paid. We're sure many Partners have rent payments, car payments, credit card payments and other bills. They require gas to transport clients, as well.

Because of this delayed notification, some Partners will have to endure additional NSF fees. If these fees are covered, this delay still creates banking issues where account holders must enter another challenge with their bank accounts, similar to the last time funds were stated to be in bank accounts and were mistakenly not.

Think about the rides that Partners gave on Monday-Wednesday of last week. These rides won't be paid out until the following Friday. In our opinion, this makes ride app driving an extreme challenge. Any new ride app company who can speed up the payment process will capture the driver market.

Unfortunately, Partners are without their earnings. We suppose Labor Day is the reason the delay occurred during this recent pay period. However, proper notification on Tuesday could have better prepared Partners to withstand this delay. Sending out a text message a day before a direct deposit is not enough time to make immediate adjustments. That's life we guess.