Paymonde Shuts Down

Posted:  12.06.07

MONTREAL - It’s official. Following weeks
of rumors and speculative posts on
webmaster forums, third-party payment
processing company Paymonde has gone out
of business…

MONTREAL — Third-party payment processor
Paymonde has officially gone out of
business, CEO Howard Cohen told XBIZ. The
company’s demise came after its bank in
the Philippines lost acquiring rights to
process Mastercard transactions.
“We weren’t left with much of a choice but
to go out of business,” Cohen said. “We
have not received payment from the bank,
and until we do so, I cannot pay what is
owed out of my own pocket. I’m fed up with
being beaten up on the webmaster boards.
We’re trying to do our best in what is a
shitty situation for everyone involved.”

The bank owes Paymonde three weeks of
payments and had promised him a settlement
Friday, but has still not made good, Cohen
said. Cohen could not offer a timetable
for webmasters to hear about money owed.

“I want to let everyone know I’m not
running away,” Cohen said. “I’d like to
thank all the webmasters that did business
with us over five years for their trust
and support. I feel terrible for all
involved. I’m not a crook. Paymonde is not
iBill.”

Cohen promised to evaluate each one of
Paymonde’s merchant accounts “on their own
merits.” He said the company is planning
to contact every webmaster that is owed
money about their financial status,
including the amount they are owed.

“What I hate about this whole situation is
people on the boards calling me a thief
and a scumbag,” Cohen said. “We tried to
take care of all of our clients. I know
many of them personally. We were at the
shows. We never hid from anybody. We
charged lesser percentage [per
transaction] than others. And also,
everyone should know the big guys like
Paycom or CCBill are not immune to this.
If their processing gets pulled, how can
they pay?”

While the Paymonde website is down, Cohen
said the company will allow clients into
their backend to check on their financial
status if they contact him by email.