LAKE KATHERINE, N.Y. – Digital distribution center Payaah.com will no longer process customer transactions, according to Abe Cherian, managing partner.
“We had too many problems with chargebacks, and Visa and MasterCard were no longer able to carry us,” said Cherian.
The company sent a letter to customers explaining, “We have pursued all possible alternative processing options for our vendors and to keep Payaah services, but unfortunately the Visa/MasterCard restrictions apply to all merchant banks in the United States.”
Payaah had been online for a year, but Cherian said chargebacks were costing the firm too much money. The company was urged to terminate all vendor service agreements by its bank, BB&T Bank of Virginia.
“It’s an unfortunate situation, but this is the only way we could solve the problem,” Cherian said.
Cherian added that Payaah will continue to release payments owed to affiliates in a timely manner.