DOLLARD-DES-ORMEAUX, Canada — Paxum, the payment processor that companies use to pay their affiliate invoices worldwide, has decided to discontinue servicing U.S. personal accounts. Business accounts will not be affected.
Ruth Blair, who leads Paxum’s marketing efforts, said that the company will be closing the U.S. personal accounts on Friday at 10 a.m (EST).
“U.S. business account holders will NOT have their accounts closed,” Blair told XBIZ. “No other clients are affected.”
Blair said that any payments sent to a closed account will be bounced back to the payer, so no payments will get stuck in closed accounts after Wednesday.
“U.S. personal account holders can withdraw their funds without paying any fees if they initiate the withdrawal themselves prior to account closure,” she said.
“If no withdrawal is initiated by the client, then we will automatically send the funds to the bank information listed in the account.”
Blair emphasized that U.S. personal account holders who have a registered business can apply for a Paxum business account if they wish.
“Paxum bank is also open for applications if any clients are interested,” Blair said. “It's business as usual for all other Paxum clients.”
In a statement to customers, the company said that were several factors involved in the decision, including an expectation of more regulatory compliance in the U.S. and the growing cost of complying with expanding rules.
The company noted that U.S. personal accounts represent a small percentage of its revenue but that its yield is comparatively low.