Freelancers who use Payoneer as their primary method to make and receive payment have a reason to smile again after Financial Conduct Authority (FCA) completed its audit and lifted the freeze on the Payoneer prepaid Mastercards after 5 days in dilemma.
This means that users can start withdrawing funds on their cards from an ATM or spend them online and in-store. While people may want to withdraw funds very quickly, FCA has assured users that no further problems are expected.
Users who would wish to withdraw money to their local bank account and use funds to make payment can do so starting July 2020. Until then, ATM fee will be waived.
Receiving Payments to Your Card
Unfortunately, following the scandal Payoneer all future payments will be only appear on Payoneer account balance and not users card. This is following payoneers plan to offer new card issuer soon ensuring long term safety of Freelancers earnings.
Using Your Card to Transact And Withdraw Cash
Although Payoneer hinted on their plans to issue a new card, users can still use the current card to make purchases and withdraw money from ATM’s. However, the card holder now has the option to decide how much money they want available on their card. In my opinion, this is a good move by Payoneer. You can always top up your card directly from your payoneers account.
What Had Transpired That Led to These New Moves?
The Freeze that was effected on thursday 25th June 2020 was following the Financial Conduct Authority (FCA) which regulates WCSL, issuing requirements on WCSL, freezing all prepaid card activity for the time being.
This action was taken to ensure cardholder funds was properly safeguarded.
What it mean’t to payoneer Mastercard Holders?
The FCA had communicated that they had taken these measures with the primary objective of protecting the interests and money of consumers who use Wirecard.
Pending further actions from the FCA, Payoneer users were temporarily unable to withdraw their funds on to their cards, nor receive new payments onto the card.
What Happened to the Money in Payoneer Accounts?
If the Payoneer card limit is $5000, then, users were only able to transfer the funds in excess to their bank accounts. $5000 were be frozen pending FCA further action.
Getting Paid during the Period
Any payments that freelancers received from marketplaces that they operate in was not be affected by the freeze. The funds, and any others already on their virtual currency balance, were available for bank withdrawal.
- Its good to understand that Wire Card’s Former and not the current CEO was arrested for failing to explain the missing $2 billion for it’s customers in Germany.
- There is a regulatory body in UK called Financial Conduct Authority (FCA) which regulates Wire Card.
- FCA has freezed all the transaction being done by Wire Card to protect the money of their customers.
- Payoneer has not done any fraud. So No need to worry. Its not only Payoneer who is using Wire Card to process payments. Many other companies who use Wirecard as their payment processor was frozen.
- Your money is safe, and once the investigation is complete, all the money from Wirecard will come back to your Payoneer Mastercard and you can start using that money thereafter.
- If you receive any future payment, it will not be affected by the freeze. You can send them to other Payoneer users as payment or can be withdrawn to a bank account.
- Payoneer might tie up with other card processors and provide you with Mastercards or Visacards from those processors soon. This is because the case in question might take a while to resolve. It has affected billions of dollars in transactions done every day.
And that is.
Let me know what you think of this blogpost in the comments below.
Until next time, take care.