ePassporte Just Got Owned (Not Just Another ePass Thread)

[Money Man]

Okay, I know this topic has already been posted on this forum since the news first broke. However, I highly doubt the following two articles (located at the bottom of this post) were included in the previous threads concerning this topic. Many people think it is an issue with Visa. It is not. It is due to a new law that was passed (or rather went into effect) on June 30, 2010.

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.

I can only imagine how many adult webmasters are going completely insane right now, as I would have to guess this is going to be the hardest hit industry. Not so much the adult affiliate programs, but the adult webmasters who literally have tens of thousands of dollars in their ePass accounts that is now virtually untouchable.

I do not see ePass resolving this issue any time soon unless they want to start working with a bank that is located within the USA so the Feds can make sure they abide by the new rules of this new law.

Lastly, I feel sorry for all the webmasters/people who just took a hard hit. My guess is that ePass is either done for good or out of commission for AT LEAST three months (or more). We will see...

http://www.italkcash.com/forum/e-currency-e-gold-e-bullion-paypal-epassporte-etc/245308-breaking-news-epassporte-shuts-down-visa-electron-card-all-users.html

http://krebsonsecurity.com/2010/09/visa-blocks-epassporte/

 

[theviralguy]

I hope you are wrong... please be wrong

 

[almir012]

US Gov. hitting strong recently...

 

[theviralguy]

Well they better not be lying that they will wire my money out I don't care about the visa as long as I can get the cash.. even though I loved that Visa </3

 

[Money Man]

Well they better not be lying that they will wire my money out I don't care about the visa as long as I can get the cash.. even though I loved that Visa </3

The problem with the wire transfer (according to my understanding) is that you cannot currently move funds from your ePass account into your eWallet. I am *assuming* you would need to be able to do this in order to successfully get a wire transfer sent out.

However, I could be wrong. I sincerely wish you the best and please give us an update as soon as you get word on your current situation.

The only problem besides not being able to transfer money into your eWallet is that ePass is probably getting a million wire transfer requests and at the same time they are watching their company crumble right before their very eyes. I mean, let us just hope they have the integrity to wire out people's money without worrying about their bottom line because after all, it was ePass who decided to do business with an offshore bank; that is NOT their customers fault.

Once again I wish you the best success and it would be cool if you could post back with your experience once this issue is [hopefully] resolved. I personally do not use ePass (and have not for a very long time), but I am sure it would help other people out who are franticly trying to get their money out of ePass as we speak.

Cheers!

 

[bobbylove321]

The op is right, and this is why a lot of adult affiliate programs are taking epass out of their payment method and moving straight to wire transfer or ccbill.

 

[theviralguy]

Your right Money Man, I can't transfer funds to my wallet to wire transfer out.. I will be sure to update the thread once... ONCE I get paid out my money.. Got almost 1k in there as I always used my visa for domains, hosting, services or w/e. I never thought that this could actually happen lol.. Thought my money was safe..

Wish me luck

 

[theviralguy]

double post..

 

[theviralguy]

So I patiently waited until 10am est as yesterday was a banking holiday I knew epass business was closed. And called today.. Here is the update..

There is a chance epass will not be carrying visa virtual cards anymore.. He told me that with what is going on that they are petitioning visa international for the accounts to be reopened due to the strict policies epass has it falls in line with the correct standards and reasons for it being closed so rapidly was unjust..

I was also told that this is the reason epass has not transferred funds from the virtual accounts to the wallets is because they strongly beleive by the end of the week everything will be back to normal.

However, in the case that its not funds will be tranferred to the wallets and it will be business as usual with out virtual cards. they will still be able to run with wires and banks etc..

Hopefully this is a positive note that they feel so strongly that they have the right to reopen the virtual accounts. If not again i was informed that funds would just be transferred to the wallet.

Hey hope this helped..

Oh FYI I also asked why we hadnt received updates as to whats going on as it would make sence to keep us in the loop.. And his response was they have no news to really update so instead of creating confusion by sending an email they kept it simple.. So here is the update

URL:

http://www.netpond.com/adult-webmasters-main-forum/161881-epassporte-update-9-7-i-got-some-answers.html

 

[flaktrak]

Similar thing happened to ibill millions were lost by webmasters. Same thing happened to websitebilling, more millions lost. In my long experience of these things. Epassporte is most likely going to go under!

As a side note the movie "Middle Men" is about the guy who started epassporte. He funded the movie! So I wonder if losing 20 mill on a movie has anything to do with this.

 

[turbopugsleylx]

Infowars.com learn the name well and fight back....this is another government power grab...the patriot act under the guise of "saving" us from terrorists effectively eliminated 4 amendments secured under the US constitution....

"Any society that would give up a little liberty to gain a little security will deserve neither and lose both." -Benjamin Franklin

*end of political rant*

 

[theviralguy]

Similar thing happened to ibill millions were lost by webmasters. Same thing happened to websitebilling, more millions lost. In my long experience of these things. Epassporte is most likely going to go under!

As a side note the movie "Middle Men" is about the guy who started epassporte. He funded the movie! So I wonder if losing 20 mill on a movie has anything to do with this.

I want to see it haha, not on tpb

 

[agj32mrgibbits]

I would like to see an article on this new law. The gov has been abusing their power lately and the constitution is supposed to keep them from doing so.

 

[flaktrak]

quote from the movie middle men;

"is it bad that we have a cheque for 20 million sitting under a chocolate bar?"

Well..... it looks as-if it is pretty bad now, eh?

I was in the industry mid to late 90's conversion rates of 1 in10 1in20 were not un heard of. These days I would be happy with 1 in 1k on adult traffic. Money was easy but there was only 1 thing selling on the internet!

 

[spirit bay]

I waited like 3 months went net teller went under but eventually got back all of my money, by check of all things.

 

[TippiE]

3$ left on epass,I'm one of the lucky people that wasted their epass before this happened.
It's a shame that such a big company could let this happen.

 

[Money Man]

I would like to see an article on this new law. The gov has been abusing their power lately and the constitution is supposed to keep them from doing so.

I am not trying to turn this into a political debate, however although a Constitution DOES exist, it really does not. Why do you ask? It is simple. The government can pass any law they want to circumvent what our founding fathers put in place.

So yes, there is a piece of paper that is called the Constitution. However, IMHO it really does not mean much anymore.

I was in the industry mid to late 90's conversion rates of 1 in10 1in20 were not un heard of. These days I would be happy with 1 in 1k on adult traffic. Money was easy but there was only 1 thing selling on the internet!

You are not lying! Man, I miss 1996, 1997, 1998, and maybe even 1999. Then thereafter things just started to get A LOT tougher. But yes, I remember the days when you could literally BANK off of TGPs.

 

[flaktrak]

I am not trying to turn this into a political debate, however although a Constitution DOES exist, it really does not. Why do you ask? It is simple. The government can pass any law they want to circumvent what our founding fathers put in place.

So yes, there is a piece of paper that is called the Constitution. However, IMHO it really does not mean much anymore.




You are not lying! Man, I miss 1996, 1997, 1998, and maybe even 1999. Then thereafter things just started to get A LOT tougher. But yes, I remember the days when you could literally BANK off of TGPs.

TPG's were the BOMB! TheHun was the man.. And Adult Buffet was always looking to put the smack down on you for violating their terms. I got a call from the adultbuffet guy, the smackdown man. His voice sounded like he was a scrawny nerd.. was funny. Oh boy do I miss xpics! I sent them the worst traffic ever and they still paid me 2k a day! and were happy to! ahhh the good ole days!

 

[tsanko]

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

 

[apotheosis]

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.

Was the same thing true in 2008 when you cut thousands of your card holders loose with like 12 hours notice?

Don't mean to rub it in, but i think its a poignant demonstration of the adage "you cant make friends of your enemies by making enemies of your friends."

Therefore, please do not mistake our silence as "hiding", "avoiding" or "stringing you along".

Again -- not trying to come off as a douche, but this is exactly what you did when you pulled out of the gambling market a couple years ago.