Statement from Aberash Asfaw, President of Cachet Financial Services

On Friday, October 25, 2019, Cachet Financial Services ceased processing ACH payments through our sponsor bank. We are diligently searching for a new processing source and remain committed to helping our clients through this difficult time. I sincerely apologize to all parties who have been affected by our crisis.

Following the fraudulent activity perpetrated against Cachet Financial Services, Cachet began planning for and implementing additional stringent security measures. Our goal was to stop any unauthorized activity and adhere to bank oversight requirements. However, these requirements were contrary to standard processing required by the industry and placed unreasonable demands on our payroll providers.

On Wednesday, October 23, 2019, the bank decided to discontinue processing payroll via ACH for Cachet. With that sudden news and considerable negotiation, we arrived at a short-term agreement to process payments already in the bank’s possession or prefunded transactions until the end of the current week.

More importantly, the end-of-service notification from the bank created an impasse during which we could not immediately secure a new sponsor bank to service our clients and resume business. In addition, the bank refused to enact Cachet’s dual entry reconciliation process. This was their demand for last week’s activity and is not a system or personnel issue.

We hope to rectify this situation as soon as possible and are diligently working to reconcile our clients’ accounts over the coming weeks.

We will continue to update all interested parties on Cachet’s news as soon as it becomes available.

To our clients: Our deepest apologies for the inconvenience this has caused each of you. We are here to assist in your search for other processing methods or partners during this transition period, as well as to furnish documentation and reporting as needed.

To our employees: You have truly gone above and beyond to serve our clients. I offer my sincere thanks for your unwavering dedication and service.

ACH Direct Deposit Payroll, Reconciliation & Fedwire Transfer Services