The recent fraud scandal by electronic payments company Wirecard AG has put Venezuelan Payoneer’s customers on edge because their cards are frozen.
Like Deutsche Bank, Volkswagen, BMV, Daimeler and SAP, the German-based Wirecard AG also committed business fraud. Its CEO was arrested for a $ 2.1 billion dollar tax fraud.
In Venezuela, many freelancers use the Payoneer service to issue and receive payments globally. The prepaid card given to its customers is issued by its subsidiary, Wirecard Card Solutions Limited (WCSL), therefore it has frozen all prepaid cards.
In this vein, Payoneer explained in a statement that they expect it to be temporary: “As you will have seen in the news, Wirecard AG was declared insolvent on Thursday. Your Payoneer Prepaid Mastercard is issued by our subsidiary, Wirecard Card Solutions Limited (WCSL) in the United Kingdom. Today, the Financial Conduct Authority (FCA) that regulates the WCSL, issued requirements freezing all prepaid card activity for the time being. We believe that the funds of the cardholders are properly protected and that the freeze will be temporary.”
However, clients with a Venezuelan address cannot yet use their money without the card because Venezuela is not on the list of countries approved for bank withdrawals directly from their bank accounts.