Customers are reporting significant issues with the merger of Warrnambool-based South West Credit and Beyond Bank.
There have been reports of long lines or disgruntled customers after the merger took effect from Monday.
The Standard has contacted numerous businesses and it's been reported that on Monday there was a long line of customers queuing at the bank trying to resolve their issues.
One woman, a long-time customer, was heard to be demanding the $80,000 from her account, saying she would not continue banking with Beyond Bank.
On Tuesday security guards were at the bank to keep order, due to the issues and unhappy customers.
Beyond Bank Australia has been contacted for comment and a spokeswoman said it was usual for there to initially be issues to work through after a merger.
A more expansive comment is expected to be released soon.
One business owner reported receiving a payment of more than $50,000 which was rejected by Beyond Bank.
That meant National Disability Insurance Scheme service providers, including carers, food providers and nurses could not be paid and they have started to withhold their services to NDIS participants because they have not been getting paid.
"That was the first day of the merger. Not a great start. We want to support the locals, but we will be reviewing the service we are being provided by Beyond Bank," the businessman said.
"We are trying to put in place a work-around but that's had to go up the chain of command at Beyond Bank and that all takes time.
"We've had these systems in place for 18 months, but it failed on Monday.
"Clearly there were plenty of other businesses in the same situation as us going by the number of people in the bank this week.
"On Monday the queue was out the door."
The businessman said he had spent 18 months building his business' reputation.
"That's been dented by the service provided by Beyond Bank," he said.
Beyond Bank chief executive officer Robert Keogh said the bank was aware of "rare" instances of customers receiving a 24-hour delay on some transactions.
"We are sorry for that," he said.
He said the final elements of the merger happened last weekend when all data, including online and app banking was :centralised safely and securely" onto the Beyond Bank platform.
"To ensure the best possible outcome, we communicated regularly with Warrnambool customers prior to the weekend and have doubled our staffing levels in our Warrnambool branch to handle any customer concerns," he said.
"We apologise if, during this process, some of our customers have been inconvenienced."
Mr Keogh said the safety and security of customers and their financial data had been and "will always be our highest priority".
"We remain committed to local communities, investing in them, keeping regional branches open and creating local jobs," he said.
"We are pleased to advise that all systems are working effectively and efficiently and if there are any customers who require further assistance with their banking, we look forward to helping."
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