WireCard - hope this isnt another SATA

[anotherone]

Dear people check the IBAN of your prepaid card to see if it is not owned by WIRECARD. Wirecard is for instance the european operator of payoneer and the payoneer debit card. So, in the future I guess the euros funds of payoneer could be frozen as it is for epayments.
I tell you so because moody's withdrew the Wirecard notation. German Banks could stop backing up Wirecard or working with Wirecard

So please withdraw your money if you see that your IBAN is owned by Wirecard before it is too late

 

[neweraoffshore]

@anotherone . Deposits are secured by the German "Einlagesicherungsfonds" . As already said, the only problem will be the Visa/Mastercards/JCB licenses as this may result in non working cards. Everything is working as usual and no Wirecard client is experiencing any problems by now. The only people I would suggest to withdrawal are the one with really big amounts like 750k+ € as everything above is not insured. In case of a bankruptcy the German government guarantees a pay out in 2 weeks.

Braun is already free again (on bail), which was obvious. Same day.

However in my opinion a bankruptcy is inevitable.
Aldi, Revolut, KLM, Orange, Orange Bank, Grab and a lot of big companies already announced to switch to different payment processors.
It's even unlikely that some investor will buy Wirecard after the trust is damaged so much and Wirecard is everywhere in the news in Europe. Also it will be quite easy for businesses to change the payment processor. They just need to change API credentials, haha. So Wirecard will loose a lot more of clients which makes it even more uninteresting for investors.

For the guys worried about EPB. Intercash cards are indeed issued by Wirecard. However they removed all links to Wirecard online. One of their card programs was even called "WireCard"

 

[isyet]

Let's write the list of all institutions and cards connected with Wirecard here. Thus, we will be more careful from now on.

 

[ih8socialism]

@anotherone . Deposits are secured by the German "Einlagesicherungsfonds" . As already said, the only problem will be the Visa/Mastercards/JCB licenses as this may result in non working cards. Everything is working as usual and no Wirecard client is experiencing any problems by now. The only people I would suggest to withdrawal are the one with really big amounts like 750k+ € as everything above is not insured. In case of a bankruptcy the German government guarantees a pay out in 2 weeks.

Braun is already free again (on bail), which was obvious. Same day.

However in my opinion a bankruptcy is inevitable.
Aldi, Revolut, KLM, Orange, Orange Bank, Grab and a lot of big companies already announced to switch to different payment processors.
It's even unlikely that some investor will buy Wirecard after the trust is damaged so much and Wirecard is everywhere in the news in Europe. Also it will be quite easy for businesses to change the payment processor. They just need to change API credentials, haha. So Wirecard will loose a lot more of clients which makes it even more uninteresting for investors.

For the guys worried about EPB. Intercash cards are indeed issued by Wirecard. However they removed all links to Wirecard online. One of their card programs was even called "WireCard"

Einlagensicherung is only available up to 100k

 

[neweraoffshore]

Ok, I added the first 7 to the list of 313.000 Wirecard clients, haha.

Don't fall for the panic. Being a Wirecard client doesn't mean that they do everything via Wirecard. Most companies use their payment processing service which can be quickly changed. And if the card programm will go bust they will have new card programms as backup. I already hear that Wirecard competitors are offering quick card programm changes.

I of course approached all Wirecard related companies where me or my clients have accounts.
I almost got the same responses from all of them.
Just one example from Wirex which uses Wirex Singapour for cards but have Ibans via Onpex:
(I was also in shock mode for a few days, as a very very big transfer didn't hit the other account, but all is good again)
"
Hello xxx,

The transfer is shown as successful on our side. I have sent the request to double-check the transfer to our banking partner and will update you as soon as I receive a reply on this case.

There's zero reasons to be worried about the business account, simply because it has nothing to do with Wirecard at all.

That said, even for the retail product (Wirex app and cards), we currently only issue ~3% of our global card stock, only in the APAC region, not in Europe, via Wirecard Singapore. Presently, Wirecard has been approaching all its partners (including Wirex) with an update, and at this stage, we see little external risk to Wirex. We're having a constant dialogue to evaluate any risk and should any arise, we'll take action.

Best regards,
"

//Edit: @ih8socialism :Link: Wirecard Bank AG . That's the "Entschädigungseinrichtung deutscher Banke" for 100k. additional 650k via "Einlagensicherungsfonds".

 

[Martin Everson]

Let's write the list of all institutions and cards connected with Wirecard here. Thus, we will be more careful from now on.

Transferwise
Wirexapp
Pockit
U Account
Xolo
Euro Pacific Bank

 

[Marie Manila]

In case of a bankruptcy the German government guarantees a pay out in 2 weeks.

Where did you find any information the German government will guarantee that?
If you consider the guarantee of the 100.000 €, that is just a LTD (German GmbH), who "guarantees" that amount of money. This GmbH can also get bankrupt.

The available money in each European deposit guarantee scheme can be found here: https://eba.europa.eu/sites/default... data - 2015-2016-2017-2018-2019 (final).xlsx

 

[neweraoffshore]

@Marie Manila " Seit Juni 2016 erhalten Sparer ihr Geld binnen sieben Werktagen zurück. Zuvor durfte das noch 20 Werktage dauern. "
They even reduced it to 7 business days, didn't noticed that.

German Source from "Stiftung Warentest" : FAQ Einlagensicherung - Geld zurück ohne Stress - Stiftung Warentest
And also a good FAQ, sadly also only in German: Einlagensicherungsfonds

That is the satement from boon relating to the "Einlagensicherungsfonds":
"

Liebe/r boon.PLANET NutzerIn,
sicherlich hast du bereits die aktuellen News zu Wirecard aus den Medien erfahren. Wir können absolut verstehen, wenn du nun Fragen zu deinem boon.PLANET Account hast.
Daher möchten wir dich informieren, wie dein Guthaben auf deinem boon.PLANET Account abgesichert ist:

• Deine Einlagen sind über den Einlagensicherungsfonds der deutschen Banken bis 100.000 Euro abgesichert.
• Zusätzlich ist die Wirecard Bank AG Mitglied im Einlagensicherungsfonds der privaten Banken, weshalb ein Mindestschutz von 1 Million Euro für dich besteht.
• Alle weiterführenden Informationen hierzu findest du auf der Website des Prüfungsverbandes deutscher Banken e.V. unter folgendem Link: Einlagensicherungsportal
• Am Produkt und dessen Leistungsumfang – wie beispielweise dem Guthabenzins oder der Gebührenstruktur – ändert sich für dich nichts. Sollten sich Änderungen ergeben, werden wir dich mindestens zwei Monate im Voraus im Rahmen einer Änderung der Allgemeinen Geschäftsbedingungen informieren.

"
important part translated by DeepL:
"
Your deposits are protected up to 100.000 Euro by the deposit protection fund of German banks.
In addition, Wirecard Bank AG is a member of the Deposit Protection Fund of private banks, which is why there is a minimum protection of 1 million euros for you.
You will find all further information on this on the website of the Auditing Association of German Banks (Prüfungsverband deutscher Banken e.V.) under the following link: Einlagensicherungsportal

Translated with www.DeepL.com/Translator (free version)"

 

[BlueMist]

So the WireCard deposit protection is €100k or €1mil? Got confused a bit.

 

[neweraoffshore]

@BlueMist Already wrote that 2 times in this thread here and also sent the links to the official website of the "Einlagensicherungssystem".
Again here : Wirecard Bank AG
Just look at it with Google translate
100k + min. 650k . So a MINIMUM of 750k is save.
Here is a link to ask for the exact sum which is secured: Sicherungsgrenze abfragen
And then i guess they will answer with the 1 mio boon mentioned.

 

[neweraoffshore]

by the way. Wirecard is now halted. Bankruptcy was filed.
I guess cards will stop working soon.
But funds will remain safe.

 

[Mark Rucken]

How affected will be Payoneer? Any word from them as of yet?

 

[Martin Everson]

You will find out how deposit protection works shortly for those that didn't pull their money.

Can't believe they waited this long and more so can't believe anyone kept their money there after scandal broke .

https://abcnews.go.com/Internationa...-spotlight-german-company-regulation-71442933
https://www.msn.com/en-us/money/com...-unit-funds-as-regulator-steps-in/ar-BB15XRza

 

[nitehawk]

What happens to WireCard Acquirer? There must be 1000s of merchants processing with them, I cannot see this subsidiary going bankrupt along with the parent company.

 

[Tax Cow]

@nitehawk

The fate of Wirecard subsidiaries is yet to be decided. Likewise, MC, Visa are likely to announce something within a few days - either a flush, or some conditions and a deadline. The pressure to take heads out of the sand keeps mounting by hour.

I'm all out of WC; not because I knew what they did behind the curtains, but I had a ton of (admittedly undeserved) luck this time.

Now it's just popcorn time !

 

[neweraoffshore]

@Martin Everson bankruptcies in Germany work a little different. Now someone will be appointed to lead the bankruptcy. The insolvency administrator will keep the company running as long as possible to get as much for the creditors as possible. That is also why the payment processing still works. However it is just a matter of time until they will cut it. For the funds, I see no reason why they should be in danger if they are below 750k (or 1 mio as boon says). It's also all over the German news, that bank account holders with accounts from Wirecard are secured.

Anyway, big s**t situation. And I guess some people will get problems, because they will know look at every shady transactions, UBOs, companies etc. ... And we all know that Wirecard was famous for processing shady businesses. It will be interesting, haha.

 

[khinkali]

Depositors are not in the same situation as lenders. I'll eat my hat if I'm proved wrong.

Still, I ask those here who have dealt with these situations in the past. Do card balances (not the same as EMI balances) get frozen? Or do the cards stop working? Or do things continue as the cards are passed to a new issuer? Like many people I use one of Wirecard's customers for day to day use and I have no idea what happens next.

 

[isyet]

Without this forum, I would not have known. The intensity of daily work is high. He said in the news but I couldn't listen. Thanks Offshorecorptalk. So glad that I have you.

 

[Martin Everson]

Not sure what assets Wirecard has....lol. Its a typical fintech bank loaded with debt, with rented buildings, staff to pay and a level of missing (or never existed) cash on its book to scare anyone.

Regulators should have put a pitch fork in this bank and call it a day. It's collapsed with billions in debt.

https://nypost.com/2020/06/25/german-payment-giant-wirecard-in-insolvency-owing-4-billion/

 

[Martin Everson]

Those who invest in shares better check their portfolios for any Wirecard shares. They are worthless now. So is any chance of getting anything back from wirecard. Might want to join this class action below against EY...lol.

---- quote start

"German law firm Schirp & Partner said that with Wirecard now effectively sidelined, it would file class actions against EY on behalf of shareholders and bondholders."

----- quote end