Stormpay payment processor

Stormpay has new TOS and they have sent emails to a lot of owners who use stormpay for payment processing for members.
Like autosurf programs, etc.
Basically stormpay says if you use stormpay on your site, then you can not use another processor like paypal, egold, etc.
Here is what they sent me:
Policy Update
31-Jan-2006 14:40
Due to high volumes of fraudulent transactions made to merchants with commission based business models, StormPay can no longer process payments for those type of merchants who choose to accept more than one payment processing solution.

Using more than one payment processor is exactly the situation that "fraud" seeks out. This enables the fraudulent user to set up a fake profile with either of the processors, make a purchase or join the program, and then withdraw their earnings to the other processor where the real identity is used. This sort of activity makes it nearly impossible for either processor, or law enforcement to properly handle the fraud because the "trail" comes to an end. This is the cause for a great many chargebacks to those merchants which can be avoided.

As of 1/30/2006 StormPay must require Merchants with a commissioned based business model who choose to accept StormPay, to only accept StormPay. StormPay certainly does not wish to dictate how our merchants run their business, all merchants are free to choose any processing solution that best suits their needs. We understand you have choices and certainly hope that choice is the online leader - StormPay. However, if another payment solution is used, please immediately remove StormPay from the associated website as a funding option and continue to use the StormPay account funds to finish payments to those members who paid using their StormPay account.

At StormPay we truly care about our merchants' and the overall success of their business and sales and for that reason we have implemented these very necessary changes. Thank you in advance for your understanding in this very crucial matter.

StormPay Inc.

 

Wow.

Whatever merchant base they did have, they just lost them all....

 

I can't believe any company would do that. PayPal just introduced that seamless processing solution. Unless these guys know something that we don't, they are going to go under pretty quickly.

 

Stormpay kills yourself!

 

Seems that StormPay is almost death.
Website was down few times in this few past days.
Transactions are not going through.

With all chargebacks and withdrawals even if they are all clear they will have hard time.

http://www.theleafchronicle.com/apps/pbcs.dll/article?AID=/20060205/NEWS01/602050337/1002

 

Not sure what opine, a few days ago I signed up with a stormclix merchant claiming $1 dollar investment.

As soon as I sent the dollar just tasting the waters, I found it was converted to 24 cents due a obscure administrative fee never mentioned or explained anywhere.

The $1 dollar investment is only valid using egold so if you send $1 stormpay they put your account on hold because to start making money you need to send egold instead, but for any odd (or fraudulent?) fact you are told about until you send any amount via stormpay.

As for the downtime, I believe its related to excesive server load caused by stormclix

 

Part of email I received from 12dailypro relating all their problems, etc with stormpay:
3. We have also become aware of some very disturbing news about Stormpay, including the fact that they have a very negative rating with the Tennessee Better Buiness Bureau, with dozens of claims against them. They company was also issued a cease and desist order by the State of Tennessee for financial related misdeeds. StormPay has also begun randomly seizing funds from user accounts, and are currently not honoring some users withdrawal requests. We believe that this is for the same reason they refused to release our funds, because they do not have the funds.

 

Stormclix is not related with downtime.
Excesive server load is probably caused by members trying to whitdraw their money.
Anyway it is hard to say what is going on now.

 

That is very disturbing news. I've been happy with their service for some time, but not any more. After four days, my money withdrawal request still has the 'pending' (needs to be reviewed) status. I'd really hate to loose that money. What to use instead of them?

 

I am now surfing their stormclix.
Funny, the sites they are banning, are on there!
Funnier still, two showed up with big boxes stating in essence: we no longer accept stormpay! we only use emo from now on!

Plus others show both paypal and stormpay, which stormpay says is against their new rules.

Just wondering how long before stormpay goes down?

 

Nope, I think it was DDOS attacks. As I took a little trip through some forums (MMG,TalkGold) it appears that StormPay made many (bad) people VERY angry by their recent moves.

 

Stormpay has froze all the accounts of all the Autosurf
and HYIP programs. An ABC news station is Utah has
been running stories about 12DailyPro when the story broke
thats when SP started to freeze accounts.

http://www.abc4.com/local_news/story.aspx?content_id=BC62B852-E188-4515-880A-94B2F2375B65
http://www.abc4.com/local_news/loca...ntent_id=F881CF96-0CFB-4A70-8A5B-00315A01061E
http://www.abc4.com/local_news/loca...ntent_id=FAFC4B6E-CD07-47AB-80CC-27BDC4253EF0

Stormpay is a sponsored a racetrack in their home town on Jan/20/06
http://stlracing.com/forums/printthread.php?threadid=68059

Articles from the Leaf Chronicle
http://www.theleafchronicle.com/apps/pbcs.dll/article?AID=/20060205/NEWS01/602050337/1002
http://www.theleafchronicle.com/apps/pbcs.dll/article?AID=/20060204/NEWS01/60204003

Last week I received a check from SP last week that bounced.

Timeline:
STORMPAY creates sister company called NETIBA and misleads the public stating their bank will now give them a break on rates, which they will pass on to members, contingent upon "third party verification".

STORMPAY collects upwards of $5M in NETIBA verification fees - almost overnight.

EGOLD Gets Raided by FBI

12 DP, perhaps hastily, denounces EGOLD.

12 DP forms partnership with EMO as an alternative to STORMPAY and for displaced EGOLD users.

12 DP makes a request for a large sum of money to be transferred from STORMPAY.

12 DP waits.

STORMPAY DELAYS

12 DP asks again.

STORMPAY informs 12 DP they are unable to transfer money and must do so "by check or direct deposit".

12 DP waits.

STORMPAY DELAYS

12 DP asks again.

Hundreds of HYIP sites using code by GoldCoders (who created the preponderance of HYIP site scripts on the web) get hacked. The sites may have been non-licensed site using GoldCoders code, hence why they were hacked.

This caused an influx of massive chargebacks by HYIP investors across the net.

STORMPAY informs 12 DP they must drop EMO and use SP exclusively in order to receive funds.

12 DP acquiesces.

12 DP waits.

STORMPAY posts a news release that all HYIP and auto surfs sites must use STORMPAY exclusively if they want STORMPAY to continue managing the risks of chargebacks (never mind that 12DP has probably had little to NO chargebacks since they have a track record of always paying).

STORMPAY DELAYS in paying 12DP.

STORMPAY, without warning or explanation, disables 12 DP account.

STORMPAY does not answer calls or emails.

STORMPAY comes under fire for disabling 12 DP.

STORMPAY disables chat to keep people from discussing the matter.

STORMPAY ignores efforts to resolve the matter from 12 DP and customers.

STORMPAY begins disabling accounts of other surf sites.

STORMPAY takes down their own SURF programs.

STORMPAY takes down all advertising for surf sites and HYIP sites.

STORMPAY refuses to make a public statement in its defense.


It is my opinion that after the offices of egold got
raided by the FBI they found a nice paper trail that
led to SP, then the ABC story broke, and Stormpay
is trying to clean up their act as fast as they can.

What after all these years of accepting these types of programs
SP finally realized there Ponzi. Without the autosurf programs
SP doesnt have too many other customers, its only a matter
of time before they close up shop. Back in 2003 Stormpay
did the same thing to the adult industry they froze everyones
account then tried to start beaverpay, but that didnt last to long.

 

I don't think that this is the FBI thing.

When FBI comes to play they shut the entire thing down until they're over. Stormpay is still active since it's messing with people's accounts and sending cash in and out of peoples online accounts.

If there was FBI there I don't think that they could even fark without asking.

To me, it looks like StormPay has major problems with their bank accounts. I'm not from U.S. but I read somewhere that there is a law in U.S. that banks may not send money to some countries and persons. If account holder tries to they have to froze all accounts involved until investigation.

That might be the reason for all of this nonsense StormPay is playing since there have been reports that members from countries in the list were able to sign up with StormPay anyway and that all checks SP is sending are bouncing.

LOL but maybe finally some people will realise that all that autosurf 'industry' they like to call themselves is just a bunch of Ponzys.

If one website can bring 12% interest every single day, then all the people investing in stocks are just stupid.

And if FBI was not involved yet, I'm sure they will soon have a visit.

 

hmmm...... well i never have any problem and got my payments on time....

 

I"ve also heard very BAD things about StormPay, I've used them about 2 yrs ago, and was looking for a new payment processor as PayPal does not allow one to receive any payments if your from South Africa so I'm looking for something similiar, but at least I'll take StormPay of my list.

 

stormpay always sucks once they reach their big times.

in 2003 they closed accounts of more than 40 country account holders and in reply they said they will refund the amount in 180 days but still no response nothing received from stormpay.

now i seen some-where in the forum that stormpay ran with $400 millions of 12dp investment company.

 

I am going to see how this plays out with them. I am going to stop accepting any payments using their system and see how it plays out in about a month or so.

 

Maybe it's just a safe get-away plan for 12DP ? Most people are smart enough to understand that it's a Ponzi scheme. What happens to Ponzi schemes? According to wikipedia one of the three can happen, and I believe it's the first one: (a) the promoters will vanish, taking all the investment money (less payouts) with them. What would happen if 12DP disappeared overnight? Many lawsuits and angry people I believe, and they wouldn't have a change winning a single one. What is happening now? Everyone's pissed at Stormpay, but Stormpay is clean on this matter, I believe they would have FBI or whatever support, because they are just propagating clean business. Yes, Stormpay looses a lot of it's respect, but at the same time - gains some (for exposing Ponzi schemes and not dealign with them?). Stormpay as a payment processor has no future. Maybe it was all along dedicated to serve this purpose? Provide a clean get-away and bank (launder) some nice cash. It's all just my speculations, I don't know the facts, please, prove me wrong.

 

StormPay could be a good processor, but they are fighting an uphill battle against PayPal the same as everyone else is. Like I said I will wait it out and see what happens for a month.

 

I have read many stories related to FBI seizing HYIP programs, considered as fraud according several sources online.

Cannot opine myself because, like in everything, there are good apples and bad.

However Stormpay was down all monday with a newbie-like message saying the server was down without any other detail or at least emailing members regarding this issue.

At least PayPal emails changes and post on site scheduled and unescheduled downtimes.

Talking about Emo which seems to be a viable solution, another which is smelling a rat is Egold... I lost my pass phrase and I'm still waiting for their reply after 2 weeks :/