I want to thank all of you for your patience and support over the last few days as we worked out an issue that impacted many of you, and take a minute to explain what happened.
Monday morning, some of you began noticing that your available balance and the balance listed as available in your list of transactions were not matching up. The difference was caused by preauthorization funds not being released once a transaction cleared.
Here’s an example of what “preauthorized funds” means, and how it impacted your account: if you went to a restaurant on Saturday night, there would have been a hold on the funds until the transaction was processed a few days later. Once the transaction cleared, the hold should have been released. The error we were experiencing was that they were not released, even though the transactions were clearing.
This resulted in some of you being unable to spend even though there was money in your account. The initial fix implemented on Tuesday corrected the problem for half of the impacted customers, and we created a manual solution until the problem was completely resolved Wednesday evening.
We are all extremely sorry for the confusion and anxiety this caused. We take the responsibility of holding your money very seriously, and we deeply regret the severe impact it had on your lives. We also recognize it created concern, even if your account was not one of those impacted.
While it is impossible for everything to work all of the time, it took too long for us to get the word out to those impacted. We anticipated a solution sooner than it was available, and we should have immediately alerted all customers prior to when we did. While our processing partner worked to resolve the underlying problem, we should have been faster in creating a manual solution.
The lessons we have learned from this will be used to improve the speed and methods we use to communicate issues with our customers, and to target areas to improve in our incident response. We are working out a plan to make things right for customers for whom this was more than an inconvenience and will be following up with many of you individually.
We started this business to better serve customers and you’ve put your trust in us. Day by day we do our best to deserve this trust and to make your lives better. We appreciate you giving us the chance to reinvent banking.