Instabill
In late June 2020, Wirecard filed for insolvency. This has had a dramatic impact on the high risk payment processing space, in which Wirecard was a significant brand. Although the specifics of the situation are still unknown and new details keep emerging, many businesses are looking for Wirecard alternatives to help secure their processing capabilities into the future.
The Wirecard Insolvency
For years, Wirecard has been a well-known brand in the payment processing space. In particular, it was known for its high risk accounts that helped merchants in certain industries get access to processing capabilities. The company was founded to serve gambling and adult-content websites that were being rejected by more traditional providers.
In 2019, a Financial Times article described some irregularities in Wirecard’s accounting. This was the most salacious of a string of controversies and rumors that had plagued the brand since almost the beginning.
On June 18, 2020, things took a surprising turn. The company was expected to publish audited numbers for 2019. However, it ended up announcing that around $2.1 billion of deposits were missing. Whether this money was mishandled or never existed is unclear. This resulted in the resignation and arrest of CEO Markus Braun.
Shortly after, the company filed for insolvency. It is not yet clear what will happen, but a sell-off of assets is a likely possibility. More importantly for high risk account holders, it is time to find an alternative that can help them continue operating.
The Importance of Finding an Alternative
This situation represents a significant risk to any organization that is processing payments with Wirecard. Although insolvency does not necessarily mean that services will stop, especially if the assets are sold off quickly, the nature of the problem (possible financial malfeasance) could cause major hiccups.
Interruptions of your payment processing operations could lead to a major hit in terms of revenue. Furthermore, the missing $2.1 billion in Wirecard’s books could spell trouble for anyone who has money held in one of the company’s accounts. This is especially true if governments freeze assets during their investigations, which happened temporarily with the brand’s subsidiary in the UK.
In short, it is prudent to move to another provider as promptly as possible. This will help to ensure that you can feel confident you will receive all the money that should be coming to you via customer payments. Additionally, you will not discover that your account has been sold to some unknown provider.
Finding the Right Wirecard Alternative
As you begin to shop for alternatives, try to move quickly but don’t simply jump on the first provider you find. After all, you most likely want to find a processing partner that can support your long-term success. That’s the whole point of moving away from Wirecard.
The most important characteristic of a good alternative is that the service provider and acquiring bank will work with you. Simply put, high risk merchants have far fewer options to choose from. An excellent merchant services provider may have multiple acquiring banks to work with to help ensure that you can still get favorable terms despite the elevated risk.
Once you have narrowed down your search to providers that will work with high risk merchants, there are still a few qualities that may recommend some over others. Look for the following in a Wirecard alternative:
- Fraud Protection Features: Fraud and chargebacks are two of the most common reasons that an industry may be labeled as high risk. A service provider that offers tools to protect you against fraud will help you to enjoy a more positive payment processing experience.
- Supports Multiple Currencies: If you are doing business internationally, it helps to have a merchant services provider that can support multiple currencies. This feature can help expand your reach significantly.
- Offshore Bank Options: Sometimes domestic banks are reticent to work with high risk accounts. Choosing a provider with offshore and international acquiring banks can help to ensure the best possible terms for your business.
- Industry-Specific Acquiring Banks: Some acquiring banks specialize in certain industries. If you can find one that works with your business type, you are more likely to have a positive relationship. It can be very helpful to find an alternative that can support your specific needs.
Instabill’s High Risk Payment Processing
Instabill offers all the above features and more. We have years of experience working with high risk accounts in industries such as online gaming, adult content, Forex trading, cash advances, timeshares and many more.
We also support businesses that have less-than-perfect credit or that are new to the field. Whatever your circumstances, if you signed on with Wirecard due to the brand’s high risk accounts, you may find the alternative you are looking for with Instabill.
We also have low risk payment processing options for other customers exiting Wirecard. Don’t hesitate to find the right alternative for your business today.
Alternative for Wirecard High Risk Payment Processing from Instabill.