Industry bank payment issues – What’s behind?

Industry bank payment issues – What’s behind?

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Many of you already know about issues regarding one of the most popular payment processor among live cam content providers, Payoneer. From one day to another, the company cut the opportunity of bank transfers, which temporarily paralyzed some adult businesses, as they need to look for new opportunities to access their money. But how this happened so sudden, and what is the real reason behind the whole fiasco?

Have you ever heard of PacNet? We neither. But this almost unknown Canadian company is in reality a huge one and little you did know, they affect your payments, as Payoneer used them as a third-party payment processor for some of its transactions towards live cam businesses.

But since PacNet was recently marked as one of the most illicit criminal organizations in the whole world by the U.S. Government, things got a but stirred up.

PacNet’s story started 20 years ago when a former bank employee found a great financial opportunity seeing a lot of companies let down by banks because of their suspicious income sources. Her idea was to create a company, that would help these businesses to still access bank accounts, so they can function properly. It is important to highlight however, that not all these companies are necessarily funded from criminal activities, simply banks sometimes have higher sensitivity when it comes to staying away from fraud.

Blacklisted PacNet execs posted by the Treasury Department

The business worked great, life was peachy at PacNet. So much, that president Day owned several homes, and the company could afford expensive trips for their employees at ski resorts or a floating hotel ship at Gibraltar. Also the company had a private plane which was used to transport employees, but according to authorities, also to haul huge amounts of cash.

However now the good life is over at PacNet as they got accused of covering for several companies whose main portfolio was mail scamming. Mainly from elderly people they cheated out enormous amounts of money with all kind of scams. Fake lotteries, phony psychics, you name it. And according to the Iowa attorney general, 75% of these checks were cashed out via PacNet.

While PacNet categorically refuses all kinds of accusations, stating that they are actively working against fraudulent activity, several former employees admit they knew about these suspicious actions. The investigation is still going, but for sure, PacNet has made it to the U.S. Governments blacklist, where they are on the same page with terrorists and drug cartels.

This is what affected Payoneer as well, and while they are still able to process payments on MasterCard credit cards, bank transfers are not possible, which mainly affects businesses, as for legal accounting, money has to arrive on company bank accounts. What will be the outcome of this whole situation is unsure for now, but these events affect the adult industry on its whole scale.

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