Rumors are spreading that visa and mastercard will pull the plug tomorrow
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WireCard - hope this isnt another SATA
- Thread starter nitehawk
- Start date
I always thought they were processing shady transactions hiding behind fake 3rd party companies.
The insolvency administrator and BaFin plan to decouple the Wirecard Bank from Wirecard, which will result in continuing the banking business as usual.
Imnportant part translate with DeepL:
"
Wirecard informs: In-house bank is exempted from insolvency and decoupled
2.12 p.m.: the overindebted Dax group Wirecard wants to exempt the group's own bank from the announced insolvency application. The bank is "not part of the insolvency proceedings of Wirecard AG", the Group Board of Management declared on Thursday. "BaFin has already appointed a special representative for Wirecard Bank AG. According to this, the Wirecard Bank will be decoupled from the parent company in organizational and financial terms: "In future, the approval processes for all payments of the bank will lie exclusively within the bank and no longer at Group level.
Wirecard AG as the parent company, on the other hand, does not currently see any possibility of continuing operations properly after July 1 due to a lack of funds: "Without an agreement with the lenders, there was a probability of loans with a volume of 800 million euros as at June 30, 2020, and 500 million euros as at July 1, 2020, being terminated and expiring", the notification stated. The company's ability to continue as a going concern was "not assured.
Translated with www.DeepL.com/Translator (free version)
"
German Source: Wirecard-Prüfer EY: Gehen von schwerer Kriminalität in weltweitem Maßstab aus
Who may get into problems? The prepaid card owners. But I guess that won't be a lot and don't think the losses are hard as it is mostly difficult or not allowed to load big sums on prepaid cards. But still, it depends, because for some 1.000€ are a big sum and losing it would hurt them a lot:
Important part translated with DeepL
"
Check the general terms and conditions
Customers often cannot tell whether Wirecard is in the prepaid credit card or not. Only in the General Terms and Conditions the name Wirecard appears.
And what is written there in the contracts could be important in the context of insolvency proceedings. As the financial and stock exchange magazine "Wirtschaftswoche" first reported, customers could actually lose money in the worst case.
The primary question here is where the money for the customer's prepaid credit cards is stored. Is the money parked at a bank or with the two trustees Visa and Mastercard? Then there are hardly any problems.
However, the situation is different if the business is conducted without a bank or trustee and is not protected against insolvency. Wirecard offers such a concept via its subsidiary Wirecard Solutions.
Among the German-speaking providers that make use of this concept are EPay Cards, Blue Cards or the International Student Identity Card (ISIC) with Travel Cash Flex Prepaid. All these cards can still be ordered online, even though Wirecard is currently undergoing insolvency proceedings.
According to the terms and conditions, in the event of insolvency, funds can "become worthless and unusable". You can also find further information here and here.
Translated with www.DeepL.com/Translator (free version)
"
German Source: Wirecard steckt in vielen Kreditkarten drin: Müssen Kunden jetzt Angst um ihr Geld haben?
Imnportant part translate with DeepL:
"
Wirecard informs: In-house bank is exempted from insolvency and decoupled
2.12 p.m.: the overindebted Dax group Wirecard wants to exempt the group's own bank from the announced insolvency application. The bank is "not part of the insolvency proceedings of Wirecard AG", the Group Board of Management declared on Thursday. "BaFin has already appointed a special representative for Wirecard Bank AG. According to this, the Wirecard Bank will be decoupled from the parent company in organizational and financial terms: "In future, the approval processes for all payments of the bank will lie exclusively within the bank and no longer at Group level.
Wirecard AG as the parent company, on the other hand, does not currently see any possibility of continuing operations properly after July 1 due to a lack of funds: "Without an agreement with the lenders, there was a probability of loans with a volume of 800 million euros as at June 30, 2020, and 500 million euros as at July 1, 2020, being terminated and expiring", the notification stated. The company's ability to continue as a going concern was "not assured.
Translated with www.DeepL.com/Translator (free version)
"
German Source: Wirecard-Prüfer EY: Gehen von schwerer Kriminalität in weltweitem Maßstab aus
Who may get into problems? The prepaid card owners. But I guess that won't be a lot and don't think the losses are hard as it is mostly difficult or not allowed to load big sums on prepaid cards. But still, it depends, because for some 1.000€ are a big sum and losing it would hurt them a lot:
Important part translated with DeepL
"
Check the general terms and conditions
Customers often cannot tell whether Wirecard is in the prepaid credit card or not. Only in the General Terms and Conditions the name Wirecard appears.
And what is written there in the contracts could be important in the context of insolvency proceedings. As the financial and stock exchange magazine "Wirtschaftswoche" first reported, customers could actually lose money in the worst case.
The primary question here is where the money for the customer's prepaid credit cards is stored. Is the money parked at a bank or with the two trustees Visa and Mastercard? Then there are hardly any problems.
However, the situation is different if the business is conducted without a bank or trustee and is not protected against insolvency. Wirecard offers such a concept via its subsidiary Wirecard Solutions.
Among the German-speaking providers that make use of this concept are EPay Cards, Blue Cards or the International Student Identity Card (ISIC) with Travel Cash Flex Prepaid. All these cards can still be ordered online, even though Wirecard is currently undergoing insolvency proceedings.
According to the terms and conditions, in the event of insolvency, funds can "become worthless and unusable". You can also find further information here and here.
Translated with www.DeepL.com/Translator (free version)
"
German Source: Wirecard steckt in vielen Kreditkarten drin: Müssen Kunden jetzt Angst um ihr Geld haben?
Whats keeping VISA and Mastercard from pulling the plug on them. Are they stupid or something or just slow....lol.
To make matters worse Wirecards core sector is the airline industry. From what I understand potential buyers are not interested in the bank or the brand but in taking over its customers only. Lets wait and see I guess.
I just bought a plane ticket with Air Baltic, and I had the displeasure to see on the screen that payment is processed by Wirecard. I don't know if there is a risk there.
Oh, and they were/are funded by SoftBank.
I didn't know that and I sincerely hope we will see even more of those unicorn/fintech type of BS going down the drain.
BTW for anyone who following VC/PE industry I think the whole mess about SoftBank invested in Wirecard is also very "fishy". Those guys are raising extraordinary rounds from Saudi Arabian "investors", and probably from other shady entities and somehow loose a couple of billions without any consequences on WeWork, WireCard, and this go on and on.
I have never used Wirecard services so I cannot comment on their usefulness but I am just a little bit sad that I've I exited my CFD short position too early.
I didn't know that and I sincerely hope we will see even more of those unicorn/fintech type of BS going down the drain.
BTW for anyone who following VC/PE industry I think the whole mess about SoftBank invested in Wirecard is also very "fishy". Those guys are raising extraordinary rounds from Saudi Arabian "investors", and probably from other shady entities and somehow loose a couple of billions without any consequences on WeWork, WireCard, and this go on and on.
I have never used Wirecard services so I cannot comment on their usefulness but I am just a little bit sad that I've I exited my CFD short position too early.
No rumor. I said early on Mastercard and Visa should pull the plug on Wirecard. Maybe nothing happens but hey why take an unnecessary risk reading through terms and conditions and trying to understand what is protected or not with wirecard. Just run and don't look back. The company is a fraud and who knows what else they have been up too.....run.
https://www.msn.com/en-us/finance/c...card-following-accounting-scandal/ar-BB15YK9q
@HighProfile Sad, I saw the news about Curve.
https://www.forbes.com/sites/barryc...-collapse-drags-down-online-banking-services/
Bad news for EY...lol. Next Arthur Anderson...maybe.
https://www.cityam.com/ey-failed-to-request-wirecard-bank-statements-for-three-years/
---- quote start
It is now reported that EY failed to request crucial account information.
Read more: Softbank plans to sue EY over its role in Wirecard scandal
A report by the Financial Times claims that between 2016 and 2018 EY did not directly check with Singapore’s OCBC Bank to confirm the lender held huge amounts of cash on Wirecard’s behalf.
Instead, the auditor relied on documents and screenshots provided by Wirecard and a third-party trustee.
One person told the FT that Wirecard has no banking relationship with OCBC and that the firm’s former trustee does not have an escrow account with the bank.
Additionally, the lender did not receive any query from EY in relation to Wirecard between 2016 and 2018.
EY is facing mounting legal action after the German shareholders’ association SdK said it had filed a criminal complaint against Wirecard’s auditors.
Japanese company Softbank has also said it will sue EY after it invested in Wirecard last month, according to Der Spiegel.
--- quote end
Imagine relying on screenshots for an audit.......lol.
https://www.forbes.com/sites/barryc...-collapse-drags-down-online-banking-services/
Bad news for EY...lol. Next Arthur Anderson...maybe.
https://www.cityam.com/ey-failed-to-request-wirecard-bank-statements-for-three-years/
---- quote start
It is now reported that EY failed to request crucial account information.
Read more: Softbank plans to sue EY over its role in Wirecard scandal
A report by the Financial Times claims that between 2016 and 2018 EY did not directly check with Singapore’s OCBC Bank to confirm the lender held huge amounts of cash on Wirecard’s behalf.
Instead, the auditor relied on documents and screenshots provided by Wirecard and a third-party trustee.
One person told the FT that Wirecard has no banking relationship with OCBC and that the firm’s former trustee does not have an escrow account with the bank.
Additionally, the lender did not receive any query from EY in relation to Wirecard between 2016 and 2018.
EY is facing mounting legal action after the German shareholders’ association SdK said it had filed a criminal complaint against Wirecard’s auditors.
Japanese company Softbank has also said it will sue EY after it invested in Wirecard last month, according to Der Spiegel.
--- quote end
Imagine relying on screenshots for an audit.......lol.
Last edited:
TransferWise is not in the list, check their tweet:
We worked with Wirecard for a short time between Feb 2017 and Sep 2018 as a debit card issuer. We ended the partnership in September 2018 and since then we obtained our own issuance license for cards through Mastercard. We have no business ties to Wirecard today.
lol...The chief accounting officer at Deutsche Bank is Andreas Loetscher who when working for EY oversaw Wireacards audits for 2015 through to 2017. I am sure Deutsche Bank have made very good use of his accounting skill set 
.
https://www.msn.com/en-us/finance/c...d-is-target-of-wirecard-complaint/ar-BB160vWX
P.S Time to short Deutsche Bank
.https://www.msn.com/en-us/finance/c...d-is-target-of-wirecard-complaint/ar-BB160vWX
P.S Time to short Deutsche Bank
Wirecard is done!
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I just received an email from WireCard. It seems the credit card processing might live on.
" We do not expect any disruptions to our operational processes for payment processes for our commercial partners. We are in extremely close communication with our partners such as Visa and Mastercard. "
and regarding protected deposits it mentions 100k and 19.7m per customer.
"We would like to point out again that deposits at Wirecard Bank AG are protected by two schemes: EUR 100,000 in deposits from private individuals as well as from partnerships (Personengesellschaften) or limited companies (Kapitalgesellschaften) are protected per customer by the legally prescribed Compensation Scheme of German Private Banks (Entschädigungseinrichtung deutscher Banken; EdB). This does not include deposits from, among others, credit institutions and institutional depositors such as insurance funds, financial service providers, or the public sector.
As the second level of protection, Wirecard Bank AG is a member of the Deposit Protection Fund (Einlagensicherungsfonds; ESF) of the Association of German Banks (Bundesverband deutscher Banken e.V.; BdB) as a voluntary deposit protection fund. Since 1 January 2020, the ESF’s protection of deposits at a bank per customer amounts to 15% of the bank's own funds pursuant to Article 72 CRR. For you, this means that your relevant deposits with us are protected up to an amount of EUR 19,700,000 (in words: nineteen million seven hundred thousand) per customer.
This information is available on the BdB’s Website (www.einlagensicherungsfonds.de). The amount has recently been confirmed to Wirecard Bank AG in writing once again by the Auditing Association of German Banks (Prüfungsverband deutscher Banken e.V.; PdB). "
" We do not expect any disruptions to our operational processes for payment processes for our commercial partners. We are in extremely close communication with our partners such as Visa and Mastercard. "
and regarding protected deposits it mentions 100k and 19.7m per customer.
"We would like to point out again that deposits at Wirecard Bank AG are protected by two schemes: EUR 100,000 in deposits from private individuals as well as from partnerships (Personengesellschaften) or limited companies (Kapitalgesellschaften) are protected per customer by the legally prescribed Compensation Scheme of German Private Banks (Entschädigungseinrichtung deutscher Banken; EdB). This does not include deposits from, among others, credit institutions and institutional depositors such as insurance funds, financial service providers, or the public sector.
As the second level of protection, Wirecard Bank AG is a member of the Deposit Protection Fund (Einlagensicherungsfonds; ESF) of the Association of German Banks (Bundesverband deutscher Banken e.V.; BdB) as a voluntary deposit protection fund. Since 1 January 2020, the ESF’s protection of deposits at a bank per customer amounts to 15% of the bank's own funds pursuant to Article 72 CRR. For you, this means that your relevant deposits with us are protected up to an amount of EUR 19,700,000 (in words: nineteen million seven hundred thousand) per customer.
This information is available on the BdB’s Website (www.einlagensicherungsfonds.de). The amount has recently been confirmed to Wirecard Bank AG in writing once again by the Auditing Association of German Banks (Prüfungsverband deutscher Banken e.V.; PdB). "
and so it ends:
Holvi Business Mastercard use temporarily suspended
Dear Holvi Customers & Community,
Your Holvi Mastercard is temporarily suspended due to recent events in connection with the insolvency of Wirecard AG. We’re now actively working on a solution to restore card usage as soon as possible.
How did this happen? The UK Financial Conduct Authority (FCA) has suspended service for Wirecard Card Solutions Ltd (WDCS) earlier today. WDCS is a subsidiary of Wirecard AG and issues the Holvi Business Mastercard. This decision was taken by the FCA without any prior notice. Holvi is not related to these events but relies on WDCS’ services.
What does this mean for you? All other functions of your Holvi account are still fully available. You can still invoice, receive and transfer funds. Rest assured that all Holvi customer accounts and funds remain safe, secure and accessible at all times. This is because all Holvi customer funds are segregated and held in separate accounts in European banks in Finland, Sweden, Denmark, the UK and France. No customer funds are held by Wirecard AG. Your money and Holvi account are safe.
What happens next? We wanted to contact you as soon as possible and share all the information we have. Since we learned about this, our team has been working to understand the implications and find solutions. We’re in contact with the WDCS and relevant authorities.
You and your company come first This is an unfortunate event, and we’re truly sorry it happened. At Holvi, we have systems in place to make sure you and your company’s money always stay safe – but we understand that card payments are a daily essential. While we figure out a solution, the rest of our service will remain unaffected. We’ll be in touch soon with more information.
If you have any questions, please contact us via this support form. Our team is standing by to answer your questions as soon as possible.
You can find more answers to your questions in our Help Centre, under ‘Frequently asked questions’.
Kind regards,
Your Holvi Team
Holvi Business Mastercard use temporarily suspended
Dear Holvi Customers & Community,
Your Holvi Mastercard is temporarily suspended due to recent events in connection with the insolvency of Wirecard AG. We’re now actively working on a solution to restore card usage as soon as possible.
How did this happen? The UK Financial Conduct Authority (FCA) has suspended service for Wirecard Card Solutions Ltd (WDCS) earlier today. WDCS is a subsidiary of Wirecard AG and issues the Holvi Business Mastercard. This decision was taken by the FCA without any prior notice. Holvi is not related to these events but relies on WDCS’ services.
What does this mean for you? All other functions of your Holvi account are still fully available. You can still invoice, receive and transfer funds. Rest assured that all Holvi customer accounts and funds remain safe, secure and accessible at all times. This is because all Holvi customer funds are segregated and held in separate accounts in European banks in Finland, Sweden, Denmark, the UK and France. No customer funds are held by Wirecard AG. Your money and Holvi account are safe.
What happens next? We wanted to contact you as soon as possible and share all the information we have. Since we learned about this, our team has been working to understand the implications and find solutions. We’re in contact with the WDCS and relevant authorities.
You and your company come first This is an unfortunate event, and we’re truly sorry it happened. At Holvi, we have systems in place to make sure you and your company’s money always stay safe – but we understand that card payments are a daily essential. While we figure out a solution, the rest of our service will remain unaffected. We’ll be in touch soon with more information.
If you have any questions, please contact us via this support form. Our team is standing by to answer your questions as soon as possible.
You can find more answers to your questions in our Help Centre, under ‘Frequently asked questions’.
Kind regards,
Your Holvi Team
Well today I got this email from Payoneer. But thanks to this forum I withdrew 80% of my funds there on Monday "just in case" haha.
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Good news with for Wirex but bad news for Payoneer users and the WireCard Mastercard - It's going to be interesting to see where this end and how it ends. It's unbelievable that such a big and trusted German company had such activity 
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