Payoneer wirecard ag insolvency is the buzzing news on the internet especially within the Internet Marketers (IMERS) circle. So this is what you need to know and how it affect you, what you should be doing an alternative ways of wielding on this development…
On Thursday, 25th June 2020, Wirecard AG, a German payment processor, and financial services provider, listed on the Frankfurt Stock Exchange, filed for insolvency. This is due to a missing $2 Billion on-going scandal.
The massive accounting scandal has resulted in its now-former CEO Markus Braun being arrested. The repercussions from Wirecard AG’s crash has extended all over the globe.
Payoneer Prepaid Mastercard® Cards is issued by the German Company’s subsidiary, Wirecard Card Solutions Limited (WCSL), in the UK.
The United Kingdom’s Financial Conduct Authority (FCA), which oversees WCSL, decided to limit WCSLs activities to protect its customers. As a result, a temporary freeze on all prepaid card activities is in effect.
Wirecard UK is authorised and supervised by the UK’s FCA to provide payment services and issue e-money services like, issuing e-money onto prepaid cards.
The FCA has imposed some requirements on Wirecard UK including, that the firm:
- Must not dispose any funds or assets
- Must not carry on any regulated activities
- Must issue a statement on its website and communicate to customers that it is no longer permitted to conduct any regulated activities.
What does this mean?
This means, until the FCA completes its investigation, all cards issued by Wirecard including your usual Payoneer cards will remain inactive. This could be seen as a welcome development even though it is coming as a news to Payoneer users.
It is not clear if Payoneer have at some point made this known to their customers that their cards was being issued by another company, this could probably have been included in Payoneer’s terms of service.
It is not clear whether this was at any point communicated to its customers.
But the reality is that your funds might be kept for so long the investigation last.
But the good news is that if you have customers who pay you with Payoneer, you don’t need to stop them as the any further inflow would go straight to your Payoneer balance, just like PayPal.
So Payoneer wirecard ag is not the end of business but a development that could be favorable or not depending on how you view it.
Any funds that are over the maximum balance of your card are held by Payoneer and are, as always, available for withdrawal. These funds are not affected by the FCA’s temporary freeze.
When will I be able to access my funds?
According to WCSL, they are working closely with the FCA to address their concerns so that this temporary freeze is lifted as soon as possible, and your card can resume its normal service to you. But when, is not something that we can predict!
What about the pending payments on my card?
Until your card is unfrozen, any pending payments will go to your Payoneer account, where they’ll land in your virtual currency balance and are withdrawable into your local bank account.
This also means, as an IMER in Nigeria, you may be using your usual means of sending your funds to your Nigerian bank. The only difference is that your withdrawal option is now short of one.
You can still send funds to exchangers or withdraw to your bank. What also you cannot do is to withdraw your funds with Transferwise.
When will my virtual balance be available?
Your virtual balance is already available. Log in to your Payoneer account to view it.
This means you can continue to receive payments from clients, platforms and marketplaces without an issue and withdraw these funds to your local bank account.
Please make sure that you have an approved bank account, in your name, linked with your virtual account.
How can I get paid during this period?
Any future payments that you receive from clients, platforms and marketplaces will not be affected by the freeze.
You can sign in to view your funds, and you can now add your bank account for withdrawal of your future incoming payments.
To read more in the words of Scott Galit, CEO of Payoneer, click here
Have you been affected by this? Luckily, I only received $100 credit into my card for a job, and it is something not disastrous, how much are you waiting to be cleared by Payoneer?
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