The Paypal Crisis. Can Someone explain?

[rpsmith]

Hi,

I have been reading about the "paypal crisis" in some of these threads. These threads are alo stating that many are switching to Payza. I have a few questions about all of this. Can someone tell me what this "Paypal crisis" is all about? Secondly, I was of the impression that Payza was being investigated as a fraud or scam. I admit this info may be a little old, but I would like to know what happened and what is going on. Can someone shed some light on this?

[Guest mrclean0325]

The "PayPal Crisis" started soon after Traffic Monsoon was shut down by the SEC. PayPal was their payment processor. In the Zeke Rewards case, which was also shut down by the SEC, the payment processor was ordered to pay back the money processed which was AlertPay (Now Payza). This was the start of AlertPay/Payza's recent problems. The name change was in trying to avert the court order from what I heard. Not sure if that plan is working or not as the whole thing is still being litigated as we speak and depending on the final settlement, Payza maybe out of business.

 

The courts had a problem since AlertPay was not a US based company. PayPal is US based and under the courts jurisdiction and it probably scared the bejeezus out of them at the thought of paying back all the money they processed since the US court ordered it in the Zeke Rewards case (which is a similar case). PayPal has had a provision in its TOS to not do business with multi-tiered commission structures.

 

PayPal has, in fact, processed payments for a LOT of programs that they shouldn't have based on their own TOS and a lot of dodgy programs. This was either through laziness or greed, doesn't really matter at this point. Right now they seems to be cleaning things up in their house. Whether to hope to show the courts they are conscientious or what, if and when, the time comes for them. Not that PayPal is an angel as it also has had a history of poor customer support and service. At least they did work most everywhere.

 

Many of the TEs and Mailers are seen as multi-tiered commissions now by PayPal; they were always on the "kinda iffy" ledge with PayPal anyway (Traffic Monsoon was a TE, so I guess this is why they started here). So PayPal started to clean house of any business they thought was a multi-tier commission or thought shady (anything that was against their own TOS they are now deciding to uphold). A lot of TEs and mailers had their accounts shut down, frozen, or limited and many of the others dropped PayPal before they dropped them in a preemptive move.. Everyone has seemed to go to Payza. Yes, Payza has it's own problems and doesn't pay like PayPal and has many countries it can't do business in. Many others have no way to get their money out of Payza if they could get it into it. Many are leery of connecting a bank account to them from their past history of just customer care and not just the legal problems they have right now.

 

So where we are today is many people have had their livelihood ripped out from under them from and no way to get their money from many of the programs they were members. Since many of the programs have switched Payza (or another payment processor that may have limits on who and where they can pay) and many people can't or won't get a Payza account to get their money. Many owners are in the lurch since now they owe money to people and they have no way to pay it to them. Most are taking the high road and some, of course, are not. Some sites have disappeared for one reason or another leaving the people owed money in the lurch.

 

Basically it is a mess for everyone concerned. Most are complaining about one site or another not paying them or the site itself disappearing without paying them. It seems there are few sites that have not been hit by this, at least as far as this industry goes. Some see it as the beginning of a new era while others are gathering torches and pitchforks and still others are just not bothering anymore. The "solution" is not readily available and everyone who uses TEs and Mailers for their income are panicking. Mostly because even if they are in a country Payza can payout to and work in, many of their downline who they get commissions from may not be.

 

I think that about sums everything up, just another day in paradise....

[rse2free]

WoW, That's a lot of reading, mrclean0325

 

But, Nice Info

[rpsmith]

Payza used to be Alertpay, huh? And people are joining up with them? That doesn't make much sense. Alertpay was involved in a number of scams. I was of the impression that they went out of business or something after their legal troubles got started. That's why they stopped doing business and started their own "private" operations. I don't remember exactly what they were doing, I just remember that my account was frozen and I lost money with them. I think they were doing some sort of auctions or something like that.

 

I was one of the people that lost my a** with one of the scams they were payment processor for. In that particular case the scammers were on video bragging about how many people they had ripped off. I can't remember the name of the program right now, I just remember being invested with it.

 

If I remember right, Alertpay was then investigated for their own scams, but again, I can't remember specific details. It has been awhile since all of this transpired.

 

If people are joiing them, I think they should be very cautious.

[leiana777]

The case of those paypal  problems is really interesting, most people could be worried, because paypal accept do business with some  advertising companies, and  later they decide to stop and froze accounts. Pp should try to undesrtand the  bussiness they acepting to work with, their risk apartment should be more cautelous.

[cristinz]

Alert Pay, as far as I can recall, wasn't involved in any scams themselves, but they were the payment processor for a large Ponzi scheme (as PayPal was for Traffic Monsson). From memory it was 12 Daily Pro that was shut down by the SEC. Because of the amount of money involved I think Alert Pays own bank accounts were frozen. They were also fairly loose with applying their TOS etc. so this wasn't the only scam they were processing payments for. They lost their ability to process credit card transactions etc. Alert Pay froze members accounts while its own funds were frozen. The business was restructured and came back some time later as Payza.

 

PayPal is a much bigger company, but they are trying to manage their risk exposure. Unfortunately they aren't doing this in a particularly sophisticated way, so lots of legitimate TEs and mailers have been effected. They now seem to view the industry as high risk.