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Send to a friendPaysystems, a popular online third-party credit card processing company has suddenly closed all IBA accounts without prior notice to their customers affecting many online businesses. We have received the following notice from Paysystems.
"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."
If you are not located in the US then they can't provide you with a real merchant account and no other solution is available with Paysystems.
Here is a small list of other payment processors available to those who are looking for some answers.
2CheckOut
PSIGate
Internetsecure
CDGCommerce
Paypal
What one can learn from this experience.
The reason paysystem was shut down is because Duetche bank with whom they were processing pulled the rug from beneath them.
They only had one bank on their back end.
This episode shouldnt condemn all the other 3rd party accounts, however if you are thinking of signing up with another 3rd party, make sure they have more than one bank to process with.
There are a few out there, though not many.