Carding Forum
Professional
When will Payoneer customers access their accounts?
The Wirecard situation shocked the fintech community around the world. But it turned out that the bankruptcy of the company is not the end. Last week it became known that money on Payoneer cards was frozen due to the fact that against the background of the situation with Wirecard, the British regulator Financial Conduct Authority (FCA) suspended the activities of Wirecard Card Solutions. And the latter issued cards and provided accounts to Payoneer customers. What is known today on this situation - read on.
The main purpose of the requirements was to protect consumers' electronic money in secured accounts. This resulted in consumers being unable to withdraw funds and make payments with these funds. The FCA's agreement means Wirecard can now resume e-money and provide payment services to its customers, and customers can use their cards as usual.
Financial Conduct Authority
What if you still have difficulty accessing your account? The Financial Conduct Authority advises in this case to contact the card provider directly or call the FCA Consumer Hotline for more information.
We have proudly served our clients in over 200 countries around the world for 15 years. We have always been by your side - our clients - and you have always been by our side. From the moment the FCA decision was made public, we knew for sure: no matter what happens, we will do our best not to let you down. We have worked tirelessly to find solutions. We had to contact millions of clients and strategic partners around the world to ensure sufficient liquidity and publicly voice this position. I would prefer to contact you on Friday and make this statement earlier, but due to the significant amount of funds raised, we had to make sure that we can provide a refund. We're working on the details and working out a plan to get you all your funds back.
Payoneer
Following the news from the UK regulator, Payoneer posted an updated press release on the website. According to him, since the FCA has removed the freeze of cards, users will be able to access the money within the next 24 hours. The delay is due to the fact that the company is working with Wirecard and Mastercard to remove technical restrictions, Payoneer explains. Users will be able to withdraw funds from cards at ATMs and spend them online.
And from July 6, users will be able to withdraw funds to local banks again, as well as use the Make a Payment and Manage Currencies features. Until that date, Payoneer will waive fees for ATM withdrawals.
All future payments will go to your current Payoneer balance, not your card. Payoneer will also soon offer users a new bank card issuer.
And on June 25, Wirecard filed a lawsuit to declare the company insolvent. All company accounts were frozen. The next day, the British regulator Financial Conduct Authority also froze the activities of Wirecard AG's British subsidiary, Wirecard Card Solutions. The latter issued cards, including for the well-known payment system Payoneer. For several days, Payoneer customers were unable to access funds in their accounts.
The Wirecard situation shocked the fintech community around the world. But it turned out that the bankruptcy of the company is not the end. Last week it became known that money on Payoneer cards was frozen due to the fact that against the background of the situation with Wirecard, the British regulator Financial Conduct Authority (FCA) suspended the activities of Wirecard Card Solutions. And the latter issued cards and provided accounts to Payoneer customers. What is known today on this situation - read on.
Financial Conduct Authority Position
Yesterday, June 29, FCA officially agreed to unfreeze Wirecard's activities, that is, to resume the issuance of electronic money and provide payment services. The restriction was lifted at 00:01 today, June 30, 2020. Thus, customers will be able to use their cards and accounts as before. At the same time, the regulator continues to monitor the situation with the parent company, Wirecard AG.The main purpose of the requirements was to protect consumers' electronic money in secured accounts. This resulted in consumers being unable to withdraw funds and make payments with these funds. The FCA's agreement means Wirecard can now resume e-money and provide payment services to its customers, and customers can use their cards as usual.
Financial Conduct Authority
What if you still have difficulty accessing your account? The Financial Conduct Authority advises in this case to contact the card provider directly or call the FCA Consumer Hotline for more information.
What restrictions will remain in effect?
According to the FCA, the requirements for Wirecard regarding where the company stores clients' money, as well as restrictions on the transfer of its own assets, remain in force. This should not concern users.What Payoneer is saying
The company sent out a letter to all clients, in which it announced that it would not wait for the FCA's decision and even in the event of a shortage of funds, it intends to return 100% of its clients' funds.We have proudly served our clients in over 200 countries around the world for 15 years. We have always been by your side - our clients - and you have always been by our side. From the moment the FCA decision was made public, we knew for sure: no matter what happens, we will do our best not to let you down. We have worked tirelessly to find solutions. We had to contact millions of clients and strategic partners around the world to ensure sufficient liquidity and publicly voice this position. I would prefer to contact you on Friday and make this statement earlier, but due to the significant amount of funds raised, we had to make sure that we can provide a refund. We're working on the details and working out a plan to get you all your funds back.
Payoneer
Following the news from the UK regulator, Payoneer posted an updated press release on the website. According to him, since the FCA has removed the freeze of cards, users will be able to access the money within the next 24 hours. The delay is due to the fact that the company is working with Wirecard and Mastercard to remove technical restrictions, Payoneer explains. Users will be able to withdraw funds from cards at ATMs and spend them online.
And from July 6, users will be able to withdraw funds to local banks again, as well as use the Make a Payment and Manage Currencies features. Until that date, Payoneer will waive fees for ATM withdrawals.
All future payments will go to your current Payoneer balance, not your card. Payoneer will also soon offer users a new bank card issuer.
What happened to Wirecard
Recall that in June this year, the audit company EY, during the audit, announced the loss of 1.9 billion euros from the accounts of the well-known provider of payment services Wirecard. During the check by the prosecutor's office, a version appeared that this amount did not initially exist and that it was indicated in the reporting in order to look more attractive to investors and clients. After that, former Wirecard CEO Markus Braun was arrested in Munich on suspicion of falsifying company reports and manipulating the market.And on June 25, Wirecard filed a lawsuit to declare the company insolvent. All company accounts were frozen. The next day, the British regulator Financial Conduct Authority also froze the activities of Wirecard AG's British subsidiary, Wirecard Card Solutions. The latter issued cards, including for the well-known payment system Payoneer. For several days, Payoneer customers were unable to access funds in their accounts.
