Wirecard AG, a German payment processor filed for insolvency on Thursday amid ongoing scandal of a missing $2 billion. The huge accounting scandal has led to Wirecard AG’s ex CEO, Markus Braun’s arrest, which has shocked and majorly impacted Payoneer card owners. As they are issued by its subsidiary, Wirecard Card Solutions Limited (WCSL) in the UK.
Furthermore, Wirecard UK, a subsidiary of the German payment processor and financial service providers, have been given the directive to stop all its operations until further notice by the United Kingdom’s Financial Conduct Authority (FCA). The firm has been ordered to not dispose any of their assets, funds or ensue regulated activities. Besides this, they have to issue a statement pertaining to the fact the firm isn’t permitted to conduct any regulated activities. The FCA’s decision to ensue this revolves around the primary fact to protect interest and money of Wirecard UK customers.
The repercussion of the FCA’s decision has led to increasing concerns with people unable to withdraw their own funds and asking Payoneer to return their hard earned money. Regarding FCA’s decision all prepaid card activities are frozen. They have issued a statement, which says:
‘the fca has communicated that they have taken these measures with the primary objective of protecting the interests and money of wirecard customers. pending further actions from the fca, you will temporarily be unable to withdraw the funds on your card, nor receive new payments onto your card.
any funds that are in excess of the maximum balance of your card are held by payoneer and are therefore not impacted by the fca’s temporary freeze.’
However, Payoneer has assured cardholders that their funds are totally protected and that the freeze is only temporary. Also, any future payments that the cardholders receive via marketplace or clients will be processed and not be affected by the freeze. Furthermore, consumers can add their bank account details for future payment withdrawals.