REDWEEK Has NOT Paid Me

[Radmoo52]

I posted a rental on REDWEEK and received and accepted on offer to rent. The contract was signed by renter and by me and confirmed by REDWEEK. Rental period was Feb 28-March 7. Payment was to be issued March 3rd. I received a notice from REDWEEK that fund transfer was initiated on that date. The postings section says to click here to view check but all I see is FORBIDDEN error message. Apparently they now use a third party payment platform. The customer service department is quite useless. I do have an open ticket but no resolution as yet. How is this even legal?

 

[DeniseM]

It may come in the mail, I wouldn't worry about it yet. [Depending on what payment method you signed up for.]

 

[dioxide45]

Don't they use Stripe? Did you create a Stripe account and connect it to your bank account?

 

[echino]

Redweek has been having technical issues with its payment processor leading to payment delays up to a week or so.

 

[rickandcindy23]

Mine have been delayed a few days but I get payments just fine. Same with Koala. They come a few days after the rental begins, usually 4-5 days. I have them deposited directly to our checking account.

 

[DeniseM]

I would never give them access to my bank account. YMMV

 

[andre10056]

I would never give them access to my bank account. YMMV

As far as I know, all "they" (Redweek, koala etc.) can do is DEPOSIT into your account. They could never do a withdrawal. So giving them "access" is only one way access.

Sorta like giving your relative (or whomever) a deposit slip and cash for him/her to hand a bank teller. He/she might be able to deposit (don't need any ID or proof of account ownership to do that), but the bank would never then allow him/her to withdraw.

 

[jp10558]

As far as I know, all "they" (Redweek, koala etc.) can do is DEPOSIT into your account. They could never do a withdrawal. So giving them "access" is only one way access.

If they have ACH access and your routing number and account number - that's all they need to do a withdrawal. There's no "permissions" for ACH - it's not like the Bank knows about PayPal or whoever - you don't authorize them. The bank MIGHT claw money back if you notice it pretty quick and say it wasn't authorized, but it depends on the bank from what I know.

Sorta like giving your relative (or whomever) a deposit slip and cash for him/her to hand a bank teller. He/she might be able to deposit (don't need any ID or proof of account ownership to do that), but the bank would never then allow him/her to withdraw.

Yea, in person the banks usually require some ID or the like to withdraw money from an account. I have had banks require ID to deposit money too, which I thought was strange, but I guess there were deposit scams or something too... There's always some scammer out there.

 

[needvaca]

As far as I know, all "they" (Redweek, koala etc.) can do is DEPOSIT into your account. They could never do a withdrawal. So giving them "access" is only one way access.

Sorta like giving your relative (or whomever) a deposit slip and cash for him/her to hand a bank teller. He/she might be able to deposit (don't need any ID or proof of account ownership to do that), but the bank would never then allow him/her to withdraw.

Their payment processor is now checkbook.io. Redweek rented my timeshare out and I recently had to set up an account. It is an ACH, and they did a test of depositing .02 in my account and then withdrawing.02 to make sure it worked. I’m very uncomfortable with this but going to see if I get paid correctly in a couple weeks after the rental date. Then I’m going to shut it off and go back to receiving a check.

 

[andre10056]

Their payment processor is now checkbook.io. Redweek rented my timeshare out and I recently had to set up an account. It is an ACH, and they did a test of depositing .02 in my account and then withdrawing.02 to make sure it worked. I’m very uncomfortable with this but going to see if I get paid correctly in a couple weeks after the rental date. Then I’m going to shut it off and go back to receiving a check.

Then that's something new. And I 100% agree with you. I wouldn't like that either.

Or open a bank account for strictly Redweek transactions....and withdraw the 100% balance as soon as your payment hits.

 

[dioxide45]

I receive direct deposits from multiple different vendors, some use Stripe others are direct ACH payments received from them. So far none of them have tried to steal my money by withdrawing funds from my accounts. The risk of Redweek somehow pulling money back from a bank account is nearly zero. Why would someone do business with a company they can't trust to pay them and not steal from them?

 

[andre10056]

I receive direct deposits from multiple different vendors, some use Stripe others are direct ACH payments received from them. So far none of them have tried to steal my money by withdrawing funds from my accounts. The risk of Redweek somehow pulling money back from a bank account is nearly zero. Why would someone do business with a company they can't trust to pay them and not steal from them?

Ultimately, the concern is that the renter voices some concern about his/her having been lied to, or the unit was not as described, or something similar. After the owner has already been paid. And theoretically that Redweek would then respond by refunding all or some of the renter's money. Would they ever do so? I wouldn't think so, but if they could, it's not beyond the realm of possibility that they might.

 

[dioxide45]

Their payment processor is now checkbook.io. Redweek rented my timeshare out and I recently had to set up an account. It is an ACH, and they did a test of depositing .02 in my account and then withdrawing.02 to make sure it worked. I’m very uncomfortable with this but going to see if I get paid correctly in a couple weeks after the rental date. Then I’m going to shut it off and go back to receiving a check.

The fact that they can deduct the small deposits they make for verification is evidence enough that they can both deposit and deduct funds via ACH. That said, the risk of them taking money from your bank account is near zero. These companies aren't in the business of fraud and theft.

 

[Ken555]

Their payment processor is now checkbook.io. Redweek rented my timeshare out and I recently had to set up an account. It is an ACH, and they did a test of depositing .02 in my account and then withdrawing.02 to make sure it worked. I’m very uncomfortable with this but going to see if I get paid correctly in a couple weeks after the rental date. Then I’m going to shut it off and go back to receiving a check.

FWIW, I've been using checkbook.io for years to pay vendors, and it's a solid platform with decent support. My vendors never share their bank info with me, but only with checkbook.io. It's very similar to bill.com in this manner, yet much less expensive. Once Redweek authorizes the payment, it will take a few days for the funds to get to checkbook.io, and then checkbook.io will send the money to your account, which also takes time.

 

[dioxide45]

Then that's something new. And I 100% agree with you. I wouldn't like that either.

Or open a bank account for strictly Redweek transactions....and withdraw the 100% balance as soon as your payment hits.

Withdrawing the money won't really do anything. An ACH withdrawal is treated the same as a check and can cause your bank account to go into a negative balance. It is up to the bank if they want to honor the check or return it NSF. This is different than a typical debit card transaction which would simply be declined at the point of sale. Now the issue is between you and your bank and making them whole along with any overdraft fees.

 

[andre10056]

Withdrawing the money won't really do anything. An ACH withdrawal is treated the same as a check and can cause your bank account to go into a negative balance. It is up to the bank if they want to honor the check or return it NSF. This is different than a typical debit card transaction which would simply be declined at the point of sale. Now the issue is between you and your bank and making them whole along with any overdraft fees.

I don't know if it won't do "anything". Redweek wants their $3000 back to refund the money to the tenant/renter. You've now transferred your $3000 to another bank account, one not at all "ACH approved" for Redweek. Your Redweek account has a zero balance. You haven't authorized their withdrawal of $3000 from your zero balance account nor can the bank or Redweek show any such evidence. 99.9% certainty that your bank will not pay that "check" (if they do, they're stupid). Would your bank send $5000, $50,000, $100,000 (all similarly unauthorized) against your zero balance account?

I'd say it would be between your bank and Redweek. Cuz you don't have a dime in the account (and will never use that account again) and that transaction was very much unauthorized..

Could the bank then sue you? Under that fact pattern!!!??? Good luck to them. I'd say the bank should be more concerned about your suing THEM for punitive damages.

 

[rickandcindy23]

I am not worried, and our bank will not allow these companies to claw back money. I get a text with every transaction and I have to okay anything unusual.

The older we get, the more we worry about this stuff. The younger generation probably has more trust in the system.

 

[andre10056]

I am not worried, and our bank will not allow these companies to claw back money. I get a text with every transaction and I have to okay anything unusual.

The older we get, the more we worry about this stuff. The younger generation probably has more trust in the system.

I've never had such concerns myself. But now that it's been brought to my attention, I might be concerned about Redweek. If only because I've seen on this board horror stories about Redweek prioritizing renter/tenant's alleged concerns to the detriment of owners.

 

[dioxide45]

I don't know if it won't do "anything". Redweek wants their $3000 back to refund the money to the tenant/renter. You've now transferred your $3000 to another bank account, one not at all "ACH approved" for Redweek. Your Redweek account has a zero balance. You haven't authorized their withdrawal of $3000 from your zero balance account nor can the bank or Redweek show any such evidence. 99.9% certainty that your bank will not pay that "check" (if they do, they're stupid). Would your bank send $5000, $50,000, $100,000 (all similarly unauthorized) against your zero balance account?

I'd say it would be between your bank and Redweek. Cuz you don't have a dime in the account (and will never use that account again) and that transaction was very much unauthorized..

Could the bank then sue you? Under that fact pattern!!!??? Good luck to them. I'd say the bank should be more concerned about your suing THEM for punitive damages.

That isn't how it works though. You've given Redweek access to your account through checkbook.io. The ACH works just like a check. No additional authorization is needed to allow them to withdrawal funds. The withdrawal could actually be authorized based on your agreement with Redweek to list your timeshare for rent. I've never done that so I don't know what the agreement looks like, but if there is a dispute then perhaps you've granted them authorization to claw back funds simply by using their platform.

Most banks would likely return the ACH if there are not enough funds, but that isn't a guarantee. It is really up to the bank if they want to pay or return the ACH withdrawal.

 

[andre10056]

That isn't how it works though. You've given Redweek access to your account through checkbook.io. The ACH works just like a check. No additional authorization is needed to allow them to withdrawal funds. The withdrawal could actually be authorized based on your agreement with Redweek to list your timeshare for rent. I've never done that so I don't know what the agreement looks like, but if there is a dispute then perhaps you've granted them authorization to claw back funds simply by using their platform.

Most banks would likely return the ACH if there are not enough funds, but that isn't a guarantee. It is really up to the bank if they want to pay or return the ACH withdrawal.

And, if they pay it, they wouldn't be paying it out of my $3000 now safely sitting in another bank. They can thereafter bill me until the end of time.

 

[BingoBangoBongo]

I posted a rental on REDWEEK and received and accepted on offer to rent. The contract was signed by renter and by me and confirmed by REDWEEK. Rental period was Feb 28-March 7. Payment was to be issued March 3rd. I received a notice from REDWEEK that fund transfer was initiated on that date. The postings section says to click here to view check but all I see is FORBIDDEN error message. Apparently they now use a third party payment platform. The customer service department is quite useless. I do have an open ticket but no resolution as yet. How is this even legal?

I have a renter checking in on Saturday and am anticipating payment next week. I went on the RW website to figure out how it would be paid and found:

How will I get paid?​

We send payments electronically. Using digital checks eliminates the expense of paper, printing, and mailing of a conventional check, and provides more cashing options for the recipient. Digital checks are very secure, with features such as authentication, digital signatures, and encryption.

What are the options for depositing my funds?​

Once you receive the email with your payment details, you can choose how to process your payment:

• EASIEST: Direct bank deposit. Connect your bank account for direct deposit. Your funds will be available within 3 business days (US banks only).
• QUICKEST: Print at home and use your bank's mobile app or an ATM to deposit your check. Takes 1-2 business days (US banks only).
• NOT SO QUICK: Receive a traditional paper check by mail. Checks are sent via USPS First Class and take 4-10 days for US addresses, 2-6 weeks elsewhere.

It appears to me that you should have control how/where the payment gets processed through the email.

YMMV

 

[andre10056]

I choose the "print at home" option. Quickest but also safest (not possible to claw back).

 

[dioxide45]

And, if they pay it, they wouldn't be paying it out of my $3000 now safely sitting in another bank. They can thereafter bill me until the end of time.

But that can cause problems with opening new accounts in the future or even maintain existing accounts. Even accounts with different banks. If your name is in the Chex System, other banks know that you may have bounced checks or unsatisfied over drafted accounts at other banks.

I still say this is a big nothing burger. It simply doesn't happen. Yes, Redweek in the past cancelled reservations in favor of renters. Mainly because they didn't have great contracts. After covid they strengthened contracts. Realize if Redweek refunds a customer, they also lose the 10% booking fee. They are in the business to make money and don't want to lose revenue due to providing refunds. The scenario is also mostly hypothetical because we haven't seen a situation where they've withdrawn funds from an owners bank. People are jumping through hoops for something that has a near 0% chance of actually happening.

 

[dioxide45]

I have a renter checking in on Saturday and am anticipating payment next week. I went on the RW website to figure out how it would be paid and found:

How will I get paid?​

We send payments electronically. Using digital checks eliminates the expense of paper, printing, and mailing of a conventional check, and provides more cashing options for the recipient. Digital checks are very secure, with features such as authentication, digital signatures, and encryption.

What are the options for depositing my funds?​

Once you receive the email with your payment details, you can choose how to process your payment:

• EASIEST: Direct bank deposit. Connect your bank account for direct deposit. Your funds will be available within 3 business days (US banks only).
• QUICKEST: Print at home and use your bank's mobile app or an ATM to deposit your check. Takes 1-2 business days (US banks only).
• NOT SO QUICK: Receive a traditional paper check by mail. Checks are sent via USPS First Class and take 4-10 days for US addresses, 2-6 weeks elsewhere.

It appears to me that you should have control how/where the payment gets processed through the email.

YMMV

This sounds a lot like Deluxe Checks eChecks. I've used this with clients and I think companies like DVC Rental Store also use it. Perhaps checkbook.io works much in the same way. I know Deluxe Checks charges a fee for direct deposit (Easiest Option) and there is no paper check by mail option. Given they are using this process, I would have zero concerns using direct deposit since Redweek doesn't have direct access to your ACH or bank account. It is all through the third party processor.

 

[jp10558]

I will also point out this is why my Paypal only has my credit card in it - too many horror stories about them mucking with people's checking accounts.