Paymex paygo paypal paywhatever

The battle for payments in NZ is on. Or is it? We have a plethora of wannabe players, but nobody seems to get it.

Paypal doesn’t care – after all eBay isn’t around and why support Trade Me?
Pago is just woefully bureaucratically crippled, and they can’t spell
Paymex looks ok, but who the heck are they anyway?
Paymate is a bunch of aussies who need to learn about web usability.

And there are probably others out there – the fact I cannot find them (or even these guys) with a cursory Google is not a good sign…

Wannabee payments monopolists – here is some free advice. If you want to crack the New Zealand market then it is very very simple – copy what PayPal did when they launched.

Give us money. $5 or $10 when we join.

And how much are you spending on advertising? oh right – nothing. Don’t think for a moment that PayPal succeeded without advertising (and giving away money). An occasional self laudatory press release isn’t going to get you anywhere (aside from inclusion in a blog rant).

Also spend effort (and pay money to usability professionals) to make your website easy to use, be local and never forget that our bank to bank personal transfers are dead simple, so you’d better be pretty good.

That said – those bank transfers cost far too much, and have considerable room for improvement in usability (are you listening BNZ?). Why are they not instant instead of overnight? The banks have a window of opportunity to shape up, or one of these guys or someone that gets it will take their business away.

Scoopit!

Published by Lance Wiggs

@lancewiggs

26 replies on “Paymex paygo paypal paywhatever”

  1. Maybe DPS should have done something. People would probably recognise the brand from topping up their Trade Me accounts. They look pretty cool to work for, their ads on Seek say they give all staff Dual 19″ monitors!

    All I get is a 15″ :(

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  2. Do you know about whois? Or NZ Companies register? To find out about any business/company in New Zealand, one only needs to seek and you shall find.

    Paul, Kerrin and Ryan, the major part of the paymex team have initiated a concept that we as kiwi’s should be proud of!

    Dont knock it til you try it! Lets support kiwi businesses, regardless how similar or dissimilar they maybe in regards to paypal, paymate, e-gold, stormpay and all others. Kiwi’s now have another option, when it comes to secure online payment methods.

    ==============================================================
    It is said that ‘No problem can be solved by the same consciousness that created it. We need to see the world anew’ Albert Einstein

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  3. Word on the street is Paymex is dead and gone as of 27/9/2008 =-( We had just finished integrating their system for our new site. I’m now searching again for another closer to home, simple service.

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  4. Yes Paymex is gone, taking my money with it, supposedly its now caught up with BNZ, will cross fingers and hope they had their systems right so I don’t lose all my money.

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  5. A Kiwi Business That Needs Our Patience & Support!
    Paymex is no longer operating… BUT… Like many NEW businesses, patience is required to allow changes to made.

    Contact Ryan, Paul or Kirren to alliviate any of your concerns. I’m sure they are more than willing to assist you.

    I strongly believe that Paymex will have their system and legal issues resolved and let’s not forget, (quote) ….”and also apologise for any inconveniance this has caused.”

    ===================================================================
    It is said that ‘No problem can be solved by the same consciousness that created it. We need to see the world anew’ Albert Einstein

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  6. I would be wrapped to see Paymex make a come back, things sounded more positive by Friday afternoon which is great.

    After trying to find a payment provider that didn’t look like some scam, I was fretting a bit about how I was going to replace Paymex on short notice.

    We do have PayPal built in too, but it really is a last resort.

    =-)

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  7. We should support them?

    You say I should contact them? These are the people who I left messages on cellphones for thursday and friday last week, then the website was down completely, and just an answering phone message left to inform people with no details of who to contact.

    They were still taking payments on the day then stopped trading?
    Then handed everything over to BNZ to make payments or sort?

    Its a nice wait for those of us who are waiting on items that we purchased in good will, and now are unsure if we will get them.

    How can a company be accepting large sums of money on the day they are going insolvent?
    I for one will not be using any payment system again that is third party, especially with the current financial market where we are going to see more companys going under due to market/finance pressure.

    Sam

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  8. It appears paymex has $35,000 in the bank but owes $50,000 in total…. Ouch. Spoke with Liquidator Friday. Those caught up in the issue (me) not likely so get all there money – at best a percentage.

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  9. Stevo – that is astonishing. They have been dipping into customer funds to run their business perhaps? Or maybe they invested those funds in CDOs.

    That’s why we have bank regulations…

    I see no reason to support these guys. Perhaps if BNZ entered the game as owners, then trust coulf be there. But even then I hope they don’t pay anything for the company – this sort of thing will generate a lot of negative brand equity.
    Meanwhile there are too many players in the game – and they are all lousy. I like the idea of seeing a competitor to DPS – if their service is that lousy then a new entrant should do well.

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  10. Hey Lance… In this case… no. The guys at paymex have not been doing anything naughty. It was due to a large fraudulant transaction. Paymex had to reverse a large transaction.
    It goes like this…..
    Paymex merchant puts through large value sale. Money comes from credit card company to paymex and then is withdrawn out from paymex system to suppliers bank account.

    Transaction get revesrse from credit card end….. Paymex has to return funds to credit card company – now unable to get it back from paymex supplier….. so basically one of its own users/customers screwed it over.

    The issue is there is only ONE merchant account (held by BNZ). Funds for users are NOT held in a trust so there is no security / legal responsability on Paymex’s behalf.

    It is up to BNZ to decide what to do. Best case situation is people with funds owing may get 70%-80%. Worst case is – ZIP!!! NOTHING.

    Mine is only $150 – apparently there are some 250 people out of pocket – most under $200. There are a couple of large ones at $8K & $10k.

    Paymex could offer cheap transactions etc because we all shared the same merchant account. Generally for a business to receive payment via Credit card you need your own merchant account and we all know the fees that go with that.

    Hope new paymex guys do not try the same thing again….

    Single merchant account exposes all uses….

    Lets see what happens..

    Stevo

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  11. Well my transaction is 3000 dollars, on the day they went under.

    This in itself is not only a poor business model, in my opinion the company has misrepresented itself.

    Putting the money in a bank account and not a trust is fraud in my opinion for this type of business.

    If my money is not forthcoming I will be looking into legal action.

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  12. My question is,
    If a payment was made to paymex for an item, and the merchant didn’t get the money, who has lost the money?

    The merchant? or the person who paid for the item.

    Sam

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  13. Just had another update from my merchant.

    Supposedly they have word that paymex will be reopening this week.

    Boy there is some cross signals going on about this.

    This is a case where perhaps paymex should be forthcoming without some details, rather than leaving us to work off rumours and conjecture.

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  14. Hi Sam,
    Yes another company (Enform)has taken over the systems and clients (but not the debts of course).

    I have spoken with both Enform and the liquidator (but not this week)
    If you wanted to know exactly yourself what is happening contact enform – they have a website http://www.enform.co.nz and they will give you the liquidators phone number – his name is Kim.

    When I spoke with Kim on friday (via cellphone) he was just sitting down with the BNZ lawyers trying to find a way forward….

    He gave me a quick outline of the situation (as he would for you also) as of Friday.

    Certainly the Enform people who are taking over are not liable for previous transactions/debits.

    I for one will be very cautious about using paymex again – what ever form it take…..

    Stevo

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  15. Sam, from what I understand Credit Card company clawed the money back from PAYMEX and returned it to the actual credit card owner. Paymex has not been able to claw funds back from actual Paymex subscriber.

    I guess once we withdraw the funds out of the paymex system paymex can not go into our personal/business acount and take the funds back as required. Looks like paymex got left holding the baby. We, in return, all pay the price….

    Does that make sense…?

    Stevo

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  16. Latest update from my merchant.

    Merchants will be unlikely to get anything from the liquidator.

    All money is being frozen for charge backs.
    Sounds like it is up to the purchasers to attempt to get their credit card company to claw back anything they can through charge reversals.

    I have sent in my paper work and will be awaiting the results over the next few weeks.

    In my opinion buying a companys clients out, and their systems but not taking on any of the debt… I would be higly dubious about using that company again, even under new owners.

    What kind of customer service is that, oh we are the new owners we don’t take responsibility for any of the past problems but please trust us and use our services in the future..

    That could make a great tui add,

    Yea right…

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  17. Direct Payment Solutions, (DPS) are offering to sponsor the setup fee for any merchants left without payment processing when the Paymex company went under.

    i think that is pretty cool of them isnt it.

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  18. So does anyone have any other options?

    From what I read about PayPal, they can freeze your account when they feel like it, meaning you most likely never see it again.

    That is a kind offer by DPS.

    Thanks,

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  19. Oh, and as for Paypal shutting down accounts whenever they feel like it, yes that definitely happens. You just need to do a search for “hate paypal” or “paypal crooks” or “paypal sucks” etc and you’ll find lots of people that have been burnt by Paypal.

    Although I must admit that in my experience I haven’t had any problems with them and have done several thousand worth of business through PayPal in the last few months.

    BUT! You can be pretty sure that just about every credit card processing company in the world has a condition in their Terms and Conditions that they can pull the plug on you at any time and for any reason that they see fit.

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  20. Taking over a business that is bankrupt without taking on the debt?
    You have to ask then have they paid anything to the liquidator for the business?

    If they have indead taken anything off the liquidators hands ie the customers/the name/ the whatever.

    That is indeed an asset that belonged to that business.

    If they have got those things for free (by not taking on debt of the company or putting money into paying someone) then it seems a bit fraudulent to me.

    What money has the new company “taking over” paymex paid to get the customer accounts/contacts/ the name/ the business model etc etc.

    Sam

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  21. We were burnt in this whole mess by around $500. There have been some very valid points mentioned above, and I like many of those hurt by this are not willing just to sit back and watch my hard earned money be flushed down the toilet.

    Firstly, what is happening to the client of Paymex who committed the original fraud. The big transaction that brought Paymex down had two sides, and someone still has all of the money.

    There is no way that OUR money should have been used to pay back the credit card (i assume visa). The %$%^&% that did the transaction should be tracked down and made accountable.

    I just had a look at the paymex website now, and have a strong feeling that it has not actually been bought out, but it is the same people starting it up again…. but I could be wrong. But all the same, as mentioned above, how much was paid for the company, and where did this money go? Legal fees no doubt!

    I am not happy with any of this and someone other than the innocent hard working parties caught up in this crap needs to be held accountable

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  22. Any business that goes under because of a single bad customer is obviously is such bad financial shape they would have gone under anyway, given time. Bad debts are part of any trading business, and good businesses manage their exposure to bad debt carefully.

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