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Originally Posted by mrpornlive
Hi, what is : Epassporte ??  |
ePassporte was an online payment processing company that provided electronic wallets and virtual Visa cards. It was founded in 2003 by Christopher Mallick. The service allowed users to transfer money, make online purchases, and withdraw cash from ATMs using their virtual Visa card or physical card. ePassporte was particularly popular in the adult entertainment industry and with freelance workers and small businesses that needed a flexible payment solution.
How It Started
Foundation and Concept: ePassporte was launched by Christopher Mallick in 2003. The company was based on the idea of creating a secure, convenient, and versatile electronic payment system. The main products offered were the ePassporte Account (an electronic wallet) and the ePassporte Visa Virtual Card.
Services Offered:
ePassporte Account: Users could load funds into their account through various methods, including bank transfers and credit cards. The account could be used to transfer money to other ePassporte users or to make online payments.
ePassporte Visa Virtual Card: A virtual Visa card that allowed users to make online purchases anywhere Visa was accepted. This was particularly useful for people who did not have access to traditional credit cards.
ePassporte Visa Electron Card: A physical card linked to the ePassporte account, which could be used to withdraw cash from ATMs and make purchases in physical stores.
Target Market: The service gained significant traction in the online adult entertainment industry, online gaming, and with freelancers and small businesses that operated internationally. Its ease of use and accessibility made it a preferred payment method for these markets.
How It Ended
Regulatory Issues and Visa Suspension: In September 2010, Visa abruptly suspended ePassporte’s access to its network. This suspension meant that users could no longer use their ePassporte Visa cards to withdraw funds or make transactions. The sudden action by Visa was a major blow to the company and its users. ePassporte's main downfall was the fact that all of their funds are held in a bank that is located offshore (not in the USA) and therefore it can circumvent this new law and the USA has no way of making sure the bank abides by the new rules of this new law. This is why Visa dropped the ball on ePass.
Communication and Fund Access Issues: Following the suspension, ePassporte struggled with communication and transparency. Users were left in the dark about the status of their funds, and many experienced significant delays in accessing their money. The lack of clear communication from ePassporte exacerbated user frustration and distrust.
Company Shutdown: In early 2011, ePassporte ceased operations. Users were eventually able to retrieve their funds, but the process was lengthy and complex. The company’s website went offline, and its founder, Christopher Mallick, faced scrutiny and criticism for the way the shutdown was handled.
Aftermath: The collapse of ePassporte left many users and businesses scrambling for alternative payment solutions. The incident also highlighted the risks associated with relying on a single payment processor, especially one that operates outside the traditional banking system.
Legacy and Impact
Reputation: The sudden shutdown and the handling of the situation damaged ePassporte’s reputation and left a lasting impression on the payment processing industry. Users were more cautious about relying on similar services in the future.
Industry Changes: The ePassporte saga underscored the importance of regulatory compliance and the potential consequences of failing to meet the standards set by major financial networks like Visa. It also emphasized the need for clear communication and contingency plans in the event of service disruptions.
In summary, ePassporte was a pioneering electronic payment service that met an untimely and turbulent end due to regulatory issues and poor crisis management. Its story serves as a cautionary tale for fintech companies and their users.
Chris made a last reply on Blackhatworld, and used the words "Money is in motion" Hence you see the comment "money in motion" a lot when it is regarding EP
We at ePassporte are as distressed as you, our valued cardholders, over an action that we did not see coming and as of today we still have received no good basis for it.
First, be assured that your funds are fully safe and protected. You are owed that and it will be fulfilled. The funds are secure.
Second, ePassporte is working with the St. Kitts bank to work out how all payments will be made and when. The details are complicated, because there are funds in motion and where and when they settle requires us to all be careful that we fully and properly account for all those funds and their rightful owner. This issue stems from our processing and reporting ability through the Visa system and their processor.
Third, ePassporte's most important asset has always been our account holder's. We are not going to undermine that asset by treating cardholders in any manner other than the best we can.
Most of us have had the unfortunate experience of dealing with banks and card associations that simply "cut us off" and did not pay us. Those actions were limited to card acquiring (merchant accounts), not card issuing, which is what we do. We can all take some comfort in the fact that this situation is not anything like the acquiring side of the business.
We all fully understand that communication to our cardholders is critical. However, it does not help any of us if we are constantly updating you on the basis of the calls that take place almost hourly. It seems to us that giving you facts, based on agreements we are working on is the best form of communication. This is what we will be doing. When we know something, that is a fact, we will report it, quickly. Our staff is all working diligently to resolve these issues and the many moving and complicated parts of getting the funds returned. Therefore, please do not mistake our silence as "hiding", "avoiding" or "stringing you along". We too have funds that are stuck in the system, as well as massive costs of operation without any income.
Rest assured that when we know, you will know and you will all be satisfied with the results. Again, your money is safe.
For those of you that have been in the industry for many years, I hope you will recall that I have a very strong track record of fighting for the rights of webmasters, program sponsors, billing companies, merchants and the industry; that dedication continues.
Thanks you for your understanding in this difficult time and for your support over the last 8 years of our operations.
Chris Mallick
For ePassporte