Nigerians, Other Freelancers in Trouble as FCA Freezes Payoneer MasterCard

payooner card

Payoneer MasterCard Freezed by Financial Conduct Authority, UK

Payoneer, an online payment service provider for global freelancers, suffered a heavy blow to its service following the decision of the Financial Conduct Authority (FCA) in the United Kingdom to freeze all the prepaid MasterCard issued by its subsidiary, Wirecard Card Solutions Limited (WCSL) based in the UK.

In a statement issued to Payoneer Prepaid Mastercard users across the world and received by one of its million users in Nigeria on Friday, the online payment service provider said “As you may have seen on the news, Wirecard AG filed for insolvency on Thursday. Your Payoneer Prepaid Mastercard® Card is issued by its subsidiary, Wirecard Card Solutions Limited (WCSL) in the UK.

“Today, the Financial Conduct Authority (FCA) which regulates WCSL, issued requirements on WCSL, freezing all prepaid card activity for the time being. We believe that cardholder funds are properly safeguarded and that the freeze will be temporary.”

Payoneer explained that pending further action from the FCA Payoneer cardholders will not be able to withdraw funds on their Wirecard issued prepaid MasterCard.

“The FCA has communicated that they have taken these measures with the primary objective of protecting the interests and money of consumers who use Wirecard. 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,” Payoneer stated.

However, funds that were in excess of the maximum balance that can be on a card can be withdrawn via other means like bank transfer as those were held by Payoneer and therefore not affected by the FCA action.

“Any future payments that you receive from marketplaces, platforms and clients will not be affected by the freeze. These funds, and any others already on your virtual currency balance, are available for bank withdrawal.

“We are actively working on other solutions for you and your patience and understanding are highly appreciated. We apologize for any inconvenience this may cause and we’ll update you with more information as soon as we have it.”

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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