Yesterday we warned the readers about a new set of regulations regarding the Payza payment processor, a system very similar to PayPal or Skrill since it enables direct payments and withdrawals without having to exchange currency separately.
Also, we were considering the results the changes will have on the HYIP industry since, as we know now, they decidedly limit setting up accounts by HYIP administrators or MLM businesses. Another issue worth is whether the decision to alter the exisiting rules was in fact designed to get rid of such problematic - though lucrative - clients.
One may think that the previously existing acceptance of MLM and HYIP endeavors proved problematic to the owners of Payza (Alertpay) - in fact its former CEO, Firoz Patel, had been repeatedly accused of enabling cybercrime as well as child *****graphy and the problems with accepting credit cards followed. Thus, appointing a new CEO might have been perceived as clearing the air surrounding Alertpay and making room for a "brand new" Payza. It seems that it wasn't enough. The admendments of Payza's User Agreement exclude companies that offer "a literal rate of return". One may wonder, whether itís really the end of Payza's affair with such lucrative enterprises? Apparently not.
Actually, its seems that Payza simply closed one door and secretly opened another. A new service emerged and it's called EgoPay.
Closely connected to Payza (even the registration process and the design of the website seems the same) since - as one can read in their "About Us" section -
"[t]he EgoPay team members are all highly qualified and experienced in the online marketplace business, some from having worked for former AlertPay, now Payza."
Payza also endorse this payment system to hyip admins. This is a part of email sent to some hyip administrators:
This email is to notify you that your industry is no longer supported by Payza.
Due to an increasingly stringent regulatory environment associated with your industry, which has been reflected in an update to Section 6.02 of Payzaís User Agreement, we can no longer process payments for your business industry. Because Payza is a licensed money transmitter agent, Payza must conform to the standards and regulations imposed by the U.S.A. and its individual state regulators. As a result, your industry has been included as one of the industries Payza can no longer support.
As of July 20, 2012, we will be required to conclude our business relationship with you and terminate your current Payza account. Please be sure to close your Payza account and withdraw all of the remaining funds. After July 20, 2012, your account will be automatically closed or restricted. If you are not able to withdraw your funds before this date, you must contact us for an assessment of your fund withdrawal eligibility.
As it is not our intent to hinder your business, we would like to suggest EgoPay, one of our most recent authorized e-currency exchangers, to help with your transition.
For additional details on how Payza can help you with this transition, or if you have any questions or concerns, please contact our Business Development Team at [email protected].
Thank You for your understanding,
The Payza Team
This helps the unexpectedly troubled HYIP industry, but EgoPay still goes by the same laws that services like that usually abide by: gambling, child po**, pharmaceutical sales, replica, hate, bestiality, tobacco, alcohol sales
are still illegal. EgoPay is registered in Belize, an offshore haven, but that does not give room to the above mentioned forbidden fruits. This Belize paradise, as it's usually true with those kind of deals, has its own limitations - the exotic jurisdiction makes direct bank payments and withdrawals impossible (the rule applies to credit and debit cards equally).
That is one of the differences between Payza and EgoPay.
Are there more? Hereís the list:
- instead of making direct deposits from your credit card or bank account you can deposit/withdraw your money from EgoPay directly to your Payza account;
such a deposit costs 3.9%
per transaction and withdrawal is 2%.
- no account verification is needed,
regardless of its status (private or business) - the only rule that applies is that you should give them the correct personal information.
- no reversible transactions:
all actions are permanent and final and no resolution center exists.
- the fees
are diversified and depend on the type of your account: personal or business.
Personal account EgoPay transfers are cheaper than Payza (only 2% and $0.25
), while business account transfers are more expensive (3.5% and $0.5
). But that's the future, since the percents will be lower until the 5th of October.
- contrary to Payza,
you cannot send money to a not yet set up account.
- a new security feature: upon registration you choose your security color
which will appear whenever you're trying to log in.
- an affiliate program with which you can earn 1%
of all deposits from one's referrals.
In the nearest future (July 20th) all HYIP administrators will be obliged to transfer all their money to an EgoPay
account. But that's not all: investors will also have to adjust and start using the EgoPay
system in order to deposit/withdraw
money to/from all HYIP businesses. If you are one of the avid investors, you should not procrastinate this decision and set up an EgoPay
account in a timely manner.
All in all, it may seem that Payza's owners found a way to have a cake and eat it at the same time. Payza
is now following the footsteps of PayPal
while the newly founded EgoPay
will become the expert of "problematic" enterprises. While Payza
family is eating their cake, all of us have to worry about the new costs and difficulties, especially when it comes to business accounts on EgoPay and the obligation to transfer money from and to Payza.
The next few days should be crucial: we will probably witness the way the most important players react to this new regime. Will you take a bite of the new Payza cake and become an EgoPay
Credits to the site money-monitor.com