MONTREAL — In response to the collapse of European fintech bank Wirecard, Paxum has announced it will return its clients’ frozen Paxum branded prepaid Mastercard funds, at the company's own expense.
The decision, according to the company, will allow an immediate return of the available balance to card-holders.
“Following last Friday’s foreclosure of Wirecard Card Solutions Limited, regulatory activity was suspended by the Financial Conduct Authority (FCA),” the rep explained. “This action unfortunately resulted in the immediate forced suspension of Paxum Branded Prepaid Mastercards and of any funds already loaded to the card.”
In response to Friday's news, Paxum consulted with its lawyers to determine any options available to assist clients in regaining access to their card funds.
After what a rep described as “a busy weekend of consideration and discussion with its lawyers,” Paxum’s CEO Moise made the “extraordinary decision” that Paxum itself will return its clients' frozen prepaid card funds.
“We know our clients would eventually get their funds back from Wirecard Card Solutions Limited,” explained Moise. “But we don't want our clients to have to wait and suffer, especially considering how difficult life is for everyone right now with the COVID-19 pandemic. It might take weeks, months or even longer for this situation to be resolved and for FCA to release card-holder funds. That's why we are stepping in to make this right.”
The company says it is in the process of issuing email instructions over the course of the next few days to all affected clients explaining how to get their funds back.
“Once the funds are returned to their Paxum ewallet account, clients will be able to withdraw their funds through one of Paxum's other options such as WIRE, EFT (local bank transfer), withdrawal to external card, or to the Paxum Unionpay Card,” the rep clarified. “Clients that do not yet have a Paxum Unionpay Card can apply for the card directly inside their account.”
Moise compared the refund method to the company’s general brand and reputation. “Just as Paxum allows you to pay with ease, we've also made this refund method as easy as possible for our clients,” he said. “Simply follow the instructions in the email and the available balance on your card will be returned to your Paxum account within approximately 48 hours so you can access or withdraw it in another way. Every affected client will receive an email with directions over the next few days.”
Paxum stressed the company “always guarantees that no client will ever lose money when working with Paxum.”
“All requests for Paxum Branded Prepaid Mastercard balance refund will be honored, and the company invites its clients to use the support ticket system for more information if needed,” the rep added.
