CHASE, N.Y. — As Chase announced its decision to close its small business account and shutter a large-format business in October, it was unclear what impact the move would have on its existing customers.
Now, the bank says the closure of the account will not impact those accounts.
The account opened in September was created to provide a way for customers to send checks to their bank accounts.
But Chase has been struggling with low returns on those payments, and customers were concerned about how the account would be used.
As of October 6, Chase said it was not paying out a single dollar of the small business accounts account.
The account, however, has been closed as a result of its high levels of fraud, which included at least one case of money laundering, according to a company blog post.
As the company stated in its post, the account had not been opened for more than three months.
Chase says it has already suspended the account for the next three months, but that it will reopen it as soon as it can.
The company did not provide a reason for the suspension, and it’s unclear if the suspension will be extended.
Chase’s decision came as part of a broader review of the business account that was launched last year to help customers avoid the fraud risk associated with checking their credit cards.
The bank said in a statement that it has “completed the review of this account that resulted in the closure, which was necessary to identify the best way to move forward with the business as we continue to improve customer service.”
The bank noted that its business account is one of the best in the country and the largest account it has in its portfolio.