Payoneer blocks funds to thousands of users
Hundreds of hosts worldwide reported they are unable to access the funds in their Payoneer accounts. Many hosts reported that accounts, prepaid cards, all types of withdrawals and funds are currently frozen by Payoneer. Login to Payoneer user account was temporary restricted, now users are able to access their virtual accounts.
Update From Payoneer
As you may have seen on the news, Wirecard AG filed for insolvency on Thursday. Your Payoneer Prepaid Mastercard® Card is issued by its subsidiary, Wirecard Card Solutions Limited (WCSL) in the UK. Today, the Financial Conduct Authority (FCA) which regulates WCSL, issued requirements on WCSL, freezing all prepaid card activity for the time being. We believe that cardholder funds are properly safeguarded and that the freeze will be temporary.
What does this mean?
The FCA has communicated that they have taken these measures with the primary objective of protecting the interests and money of Wirecard customers. Pending further actions from the FCA, you will temporarily be unable to withdraw the funds on your card, nor receive new payments onto your card.
Any funds that are in excess of the maximum balance of your card are held by Payoneer and are therefore not impacted by the FCA’s temporary freeze.
How can I get paid during this time?
Any future payments that you receive from marketplaces, platforms and clients 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.
We are actively working on offering additional options for you and your patience and understanding are highly appreciated. We apologize for any inconvenience this may cause and we’ll update you with more information as soon as we have it.
Quick Facts about Payoneer funds getting frozen.
- Wire Card is a company which is providing master cards etc for many companies like Payoneer and individuals.
- Wire Card’s Former (not current one) CEO is arrested for vanishing around 2 billion euro (not sure how much) from its customers(either individual or companies) in Germany.
- There is a regulatory body in the UK called FCA which regulates Wire Card, so to protect our money from being misused by Wire Card, FCA has frozen all the transactions being done by Wire Card.
- Payoneer has not done any fraud. So No need to worry. It’s not only Payoneer who is using Wire Card. Many other companies are using Wire Card services and are frozen now.
- Our money is safe, once the investigation is done, all the money from Wirecard will come back to Payoneer and we can use that fund thereafter.
- Suppose if your card’s limit is 5k USD per day which is mine… that means if I have 20K USD in my payoneer.. only 5k USD is frozen as 5000 USD is only amount inside Wire Card Master card.. not the whole amount. that means I can transfer the remaining 15 k to any Payoneer user or do bank withdraw.
- If you receive any future payment it can be sent to other Payoneer users as payment or can be withdrawn to the bank account.
- Payoneer might tie-up with other card processors and provide you master cards/visa cards from those processors soon. Because it’s not a small case..it has affected billions USD of transactions done every day.
Wirecard in the news: Funds on your Payoneer card are safe and secure
By the main time, this is the FAQ provided on Payoneer’s blog
1. Are the funds held on my Payoneer Prepaid Mastercard® Card issued by Wirecard safe?
Yes. Funds held on your card remain secure as they are held in safeguarded accounts at regulated credit institutions in the UK and EEA and designated as your funds.
2. What is the relationship between my card issuer, Wirecard Card Solutions Limited, and Wirecard AG which is at the center of this story?
While Wirecard Card Solutions is a subsidiary within the Wirecard group and shares the same brand, they are an entirely independent entity with their own board, their own regulatory and capital requirements and are subject to regulatory oversight and accounting standards in the UK. Wirecard Card Solutions Limited is profitable and sound, according to Companies House Filings, and the money they hold for you is totally ringfenced.
3. Now that Wirecard has filed for bankruptcy, what happens to my Payoneer Prepaid Mastercard Card issued by Wirecard?
Your Payoneer Prepaid Mastercard Card is an e-money product issued by Wirecard Card Solutions Limited, an independent subsidiary of Wirecard AG, and regulated in the United Kingdom by the FCA. The card service continues without interruption. As an authorized e-money issuer, Wirecard Card Solutions Limited complies with the requirements of UK Electronic Money Regulations 2011, which are designed to ensure the safety of the funds stored on your card.
4. If my Payoneer Prepaid Mastercard Card issued by Wirecard becomes unavailable, what options would I have?
This is a very unlikely outcome, but if it were to happen, you could still get paid into your Payoneer account, and hold funds in your EUR balance. From there you can withdraw your funds to your local bank account, make a payment and utilize other Payoneer services. Furthermore, we are currently looking at contingency plans to ensure you would be able to continue to use your Payoneer Prepaid Mastercard Card without interruption.