Got this email a week ago. Was too busy to post it. Looks like Zombaio is officially owned by Paynet Systems based in Belize. There are a couple of important lines concerning paying their customers. What I understand is that they will be looking at the customer statistics to determine who to pay first, based on if the client send new sales and if their websites are free from compliance issues. This whole thing does not smell good. They still all me money for 2 periods. I will talk to them and post the result later…
Zombaio transfer announcement – 2014-11-07
The transfer of the business to our new owners as previously announced happened as planned on November 1st. A couple of small reporting bugs were identified and have been resolved but other than that there were no major issues and most importantly no disruption in service. If anybody has noticed anything else in the new control panel that doesn”t seem right, or hasn”t been explained elsewhere, please open a support ticket.
Immediately upon taking control, the first priority of the new ownership was to clear our outstanding Acquirer fines and penalties and restore the company”s good standing which has already been completed. This was essential in ensuring that we receive future settlements on time and without deduction and can in turn pay merchants on time. Most merchants have no idea of the huge fines and penalties that can be levied on processors due to mistakes or illegal content on websites they process for and it is fair to say that we as a business have received more than our fair share of these in recent times, eating into our reserves and ultimately causing the cash flow issues that led to where we are now.
The first payment for current transactions will be sent out shortly after we receive it into our bank on the 24th November. This will be in respect of the 3 day first processing week 1st to 3rd November with settlement weeks thereafter running from Tuesday to Monday. For this first period, the payout information will not appear in ZOA until the day the settlement is actually created, however this will soon be changed so that the settlement is created and can be found in ZOA the day after the settlement period closes to make it clearer and create less confusion.
As we have previously mentioned, and is customary when purchasing a business, Paynet will be releasing funds to clear outstanding balances to us in accordance with an agreed schedule and we will be using those funds to settle amounts owed in batches starting next week. Although we would like to be able to clear everybody at the same time, that is simply not possible the way the deal is structured but I re-iterate that it is our intention to resolve all accounts as soon as we can and ask for just a little more patience while we work through this.
Again, as mentioned previously, a number of factors will be looked at when determining the order in which these settlements are made. These will include but not be limited to whether the amounts owed are new sales, re-bills or a mix, whether the merchant is actively sending new sales, whether the account is in good standing generally and whether all websites are free from compliance issues.
Unfortunately, one of the things that original Zombaio did wrong with hindsight is that we set the barrier to working with us too low which created a lot of small merchants, with a lot of small payments, and in truth managing these accounts has quite often not been profitable.
This is one of a few things that we will be looking at as we try to strengthen the business going forward. Paynet have already told us that they plan to be more selective about merchants and sites accepted going forward and have started a merchant evaluation exercise and compliance checking process as the first part of this. This does not mean that low volume, low value businesses will automatically be blanket removed, but it may mean that in some cases there will need to be changes made to certain aspects of the relationship but if necessary, these will be discussed on an individual basis and any account that needs to be renegotiated or is marked for closure will be allowed a reasonable time to make alternative arrangements.
There is still a lot of work to do, but this will be a lot easier with our new stronger foundations, and I just want to give a huge THANKS to all merchant that have been understanding and supportive throughout what was a very difficult time. It really is appreciated. I cannot say this enough.
Paynet Systems Inc.
Suite 508 Marina Towers
Newtown Barracks Road
Belize City, Belize
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