PaySystems Dumps Customers

[DVHost]

I just received this email:


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IMPORTANT NOTICE : myPaySystems Forced to Terminate its Internet Billing Account (IBA) Services Effective Immediately


Dear myPaySystems merchant,

Due to circumstances beyond our control, we must terminate our myPaySystems Internet Billing Account (IBA) services. This unfortunate situation is due in part to, restrictions imposed by the VISA/MasterCard association on processing of Internet credit card transactions by third party billing companies, and, our acquirer Pago eTransaction Services GmbH/Deutsche Bank, suspending our accounts and accelerating the termination of our IBA processing capabilities.

All merchants currently processing through an IBA will no longer be able to process transactions and we are forced to give notice that effective immediately, August 9, 2004, your myPaySystems IBA Agreement is terminated. Further, as per section 9.3(e), notice is given that all funds must be held pending risk review of each account. At this time no release schedule is available, as each case attracts its own risk profile. There are also external factors which require final determination. Once we ascertain the resolution of your risk scenario, your funds may be released in the normal course.

As we valued your business, we pursued all possible alternative processing options for our merchants and had implemented a transition plan to migrate all of our qualified merchants from a myPaySystems IBA to their own merchant accounts. It was due to the sudden actions of Pago eTransaction Services GmbH/Deutsche Bank that we were unable to complete the migration. If you continue to require online payment processing services you may contact other payment processors that provide similar services. Searching for “process credit cards online” in any search engine will provide you with possible alternatives.

At this time PaySystems will only accept written communication concerning this matter, addressed to:

myPaySystems
attn: Legal Department
1500 University Ave., Suite 920
Montreal, Quebec
Canada H3A 3S7


We would like to extend our sincerest apologizes for any inconvenience this may cause to your business. We thank you for your patience and understanding during this difficult time.


Sincerely,
myPaySystems Management

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What a mind blower! This is most unfortuante and untimely. If you are a PaySystems Customer and have not received this mailing, be aware and take appropriate steps to arrange for another payment processing provider.

[cambodia]

hmm so bad , so you going to looking for new pay system ? any cheaper pay system and worldwide ? i wanna get one too

[DVHost]

The fact is, I have two hosting companies. I used PaySystems for my other co. and I use e-OnlineData/Authorize.Net for my H-Sphere/Vortech side.

Opening a new merchant account is a hassle and thus I will be migrating my clients over to e-OnlineData/Authorize.Net.

But this doesnt change the fact that money I have tied up in PaySystems may or MAY NOT come back to me. And if it is destined to be returned.... when?

This is disconcerting.

[Vixen]

Damn!! That sucks. Talk about no notice at all.

[Brangwyn]

Truly sucks! man am I glad now I stuck with 2Checkout through all their problems rather than moving to PaySystems.

[TheDesigners]

Doesn’t seem right, especially freezing funds to review your “risk” scenario. How long has this company been in business?

[jmbeach]

how timely. Just today I was looking at myPaySystems as an option for the company I work for. That was close!

Sad thing is they must have known this was coming. And no notice at all... that's okay, karma will get them in the end.

[generic]

im guessin that goes for their other company paysystems.com too which I just signed up as an agent for today. guess Ill take a pass.

also, their sign up forms still work and no indication of this on their site..

[DVHost]

I am not 100% sure how long they have been in business. I checked that out 4 years ago when I signed up with them. At the time they were called Revecom.

Out of the blue this notice hit my inbox today. The CP lists a technical error by which no payment processing was possible since Thursday of last week. I've seen this in the past and the problem had been resolved. Business moved forward. This time though it appears to have been a smoke screen.

Freezing funds is not very nice at all. I am very concerened about not receiving monies due to me. I was so thinking about leaving them recently and consolidating everything under Authorize.Net. Wish I would have acted upon that.

There is a rapidly growing thread on WHT discussing this drama. Peoples are not happy and many are much more out of pocket than I am; some hundreds of thousands, some only hundreds. Regardless of the amounts frozen, its the principle.

I wonder if a class action suit would be in order.

Trace, definitely take a pass on them. Speed away in fact.

I'm (insert violent offensive verbiage here)!

What I need to do now is get setup to handle billing with Authorize.net. All of my accounts on the other service are billed annually.

The problem with Authorize.Net is that, while they have ARB Automatic Recurrent Billing, you must manually enter all transactions and they can only exist for 3 years. To boot, its a $40 setup fee and $20 monthly. Bah!

I have already written the full CP and management system for my other hosting company. So now I guess I will have to write a billing module and I have little time to get it up and running. No problem, I can do it. I just hate the pressure not to mention getting the customers to update their billing information so it is in the new system. I can prolly pull it off in a week. In the end, it will behave like H-Sphere and submit new billings daily. It'll be sweet.

Well, off to work!

[generic]

cc processing, USING Hsphere, was a breeze to set up. works great for me.

Also how is e-online data, heard good things so I signed up for a partnership with them too today. Looking for a more reliable option for my clients outside of payquake if they want better support, etc.

Just tough to pay the gateway/statement fees, but you definitely get the service you pay for, so I may have to do it.

[jmbeach]

class action actually doesn't sound very far off if they've been collecting for days while not actually intending on honoring payments.

I guess you'll just have to see if they actually do the right thing and honor all those payments. Let's hope they do, otherwise they'll certainly have a mutiny on their hands.

Best luck, DV

[mresell]

Wow....man you have to really check people out...even then. Class action will get you nothing. Only lawyers get money in class action. That is a fact. If you are gonna have to take legal action then just sue.

[DVHost]

Originally Posted by tracewebspace

cc processing, USING Hsphere, was a breeze to set up. works great for me.

Also how is e-online data, heard good things so I signed up for a partnership with them too today. Looking for a more reliable option for my clients outside of payquake if they want better support, etc.

Just tough to pay the gateway/statement fees, but you definitely get the service you pay for, so I may have to do it.

Yeah, H-Sphere is really easy and does what it is supposed to do. It hasn't always been like that. Search the forums in the past and you will get the willys.

e-Online data is not bad as long as you do not have to communicate with them. They are not very pleasant to talk to and they do not readily return phone calls. I've been left with that uneasy "You are a slug and I have another call to give the same impression to" feeling.

Of course I only contact them to update my information etc. Authorize.Net on the other hand still feels kinda rushed on the phone but they take care of you and respond in a timely fashion.

In a nutshell, together they do what they are supposed to do. Lots of extra charges for fluffy features from Authorize.Net though.

mresell, its possible that a class action could yield results. It seems to have worked for the PayPal fiasco. Participants in that suit may not get all they hoped for but someone is getting a portion of that 9.25 mill.

I just hope they do the right thing. PaySystems has a presence as a processing provider and scores of companies were using them. This event will send ripples far and wide. Alot of noise has yet to be made.

I just want my money!

[Spirited]

What service does e-online offer?

When I read the marketing hype on these sites like e-online, they bath your dog, change the oil in you car, ad infinitum.

Is e-online truly a one stop service?

Do they provide your merchant account for the credit cards?

Do you simply signup with e-online? Then direct HSphere to transfer a customer to e-online?

Does e-online collect, take out their discount rate, and send the remainder to the bank account number we provide?

I see a 2.15% Discount Rate VISA/MasterCard. But, they are sort fuzzy on the others, i.e., "Discover and American Express upon request"?

[jmbeach]

What ever happened with this? I don't see any difference in their offerings on their site. Are they still taking on new customers?