myPaySystems Forced to Terminate its Internet Billing Account (IBA) Services

[Stewart]

I think this has been posted on WHT but it seems that Paysystems merchant accounts have gone belly up!

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

and got this this morning:

MYPAYSYSTEMS IBA TERMINATION UPDATE –August 11th 2004

Dear Merchant,

I would like to update you on the situation regarding the termination of the myPaySystems IBA Services. We have been communicating with many of our affected merchants and we have been monitoring online postings. We are deeply sympathetic to the undue hardship this situation may be causing to your business. Like our merchants, we have been prejudicially affected by the sudden termination of our accounts by Pago eTransactions Services and are suffering its consequences. We are committed to assisting you through this situation and plan to issue updates. As of now, these are the most frequently asked questions on a regular basis.

July 29th and August 5th Settlements

myPaySystems did not receive the last two scheduled merchant settlements. We have been informed that all funds are being held pending account risk review. We are making every effort to accelerate the release of these funds in order to settle all merchants that have outstanding sums due to them. As soon as funds are released to us, we will begin releasing them to our merchants. We expect this process to begin within the next few days.

Rolling Reserves

As well, Pago eTransactions Services has not yet released any merchant reserves. We are also working to have these funds released to merchants on their scheduled release dates. Your funds are not being forfeited and will be released in due course.

Future Processing Capabilities

At this time we can only offer Internet merchant accounts to U.S. based merchants. We are working at establishing alternative payment processors than can process for non-U.S. merchants. We expect to be able to communicate possible alternatives by tomorrow. We will be sending a detailed email with alternatives to all merchants that may require ongoing services.

Processing Refunds & Chargebacks

You will continue to have access to your online MCC portal to view all of your historical transactions. While account termination does not allow you to process refunds, consumers may still be able to chargeback any unfulfilled order. We will not be levying any fines against your account for accrued chargebacks after the date of termination. Transactions which have been subject to a chargeback and are unfulfilled may be reprocessed through a new processing account should your client wish to still receive the goods.

I would like to thank you for your continued patience in this matter. We are working around the clock to resolve all issues affecting our merchants.


Sincerely,

Philip Fayer
President and CEO
PaySystems Corporation

Now im going to have to look for a new CC processor... real shame as i found paysystems usfull.

 

[SLH*]

You might look at http://www.emaxhosting.com/merchant.php
(no affiliation) They might be able to help you

 

[country-tyme]

i use(d) paysystems, but never had any clients signup with it. In fact, all emails from them stopped in August, and I just thought it was because there were no transactions. NEVER received any notification about the IBA contracts.