Guest EverythingWeb Posted January 11, 2007 Share Posted January 11, 2007 Hello, For those companies using Velocity Merchant Services as their payment provider, please be aware that as of 5.30pm this evening, that company has been put into Liquidation. The following was released to customers today. Dear Customer, It is with great regret that I must inform you that Velocity has ceased trading and will shortly enter into insolvency proceedings. During the summer of 2006 Velocity was contacted by the Met Police with regards to two Merchants on our books who were alleged to be selling non-existent holidays. A Met Police briefing can be found at: http://www.met.police.uk/fraudalert/news/h...ud_08_11_06.htm. Due to the size of the fraud Velocity is simply not able to refund all the amounts requested by consumers under the chargeback scheme. All attempts have been made to find a solution but there simply is not one at this stage. The payment systems will be kept running for as long as we can legally run them in order to give you as much time as possible to find a solution. The phones at the Teddington Office will not be answered from this point on. A notice will be published once the courts have appointed an Insolvency Practitioner. Yours, Velocity Support I would suggest that anyone who has an active VMS account, stops allowing transactions being placed to your account. You wont be paid. Please keep this discussion free of 'Oh dears'. Anyone that has genuine questions relating to this, please feel free to post. Kindest Regards, William Quote Link to comment Share on other sites More sharing options...
Al Brookbanks Posted January 11, 2007 Share Posted January 11, 2007 THAT.... sucks. I'm suprised velocity have to refund the customers from the holiday companies. I would have thought their T&C's would do that. Quote Link to comment Share on other sites More sharing options...
Guest EverythingWeb Posted January 11, 2007 Share Posted January 11, 2007 Chargeback Scheme. When purchasing anything - always use a Credit Card - you can charge it back should anything go wrong/not materialise etc. Debit cards = no such luck. :dizzy: Quote Link to comment Share on other sites More sharing options...
Al Brookbanks Posted January 12, 2007 Share Posted January 12, 2007 Ah of course. Completely sucks. I see their site is down now. Quote Link to comment Share on other sites More sharing options...
Guest EverythingWeb Posted January 12, 2007 Share Posted January 12, 2007 As an update to those who may be affected by the Velocity issues: - Velocity have ceased trading and their site/systems are down/going off. - Pago & Deutsch Bank who did the actual processing behind Velocity have terminated their contract with Velocity and will stop allowing any transactions being placed through Velocity's system as of midnight tonight. - All rolling-reserve balances will be paid as & when they fall due and any transactions recently put through will be paid in accordance with the normal terms. If anyone is directly affected by this and isn't receiving the updates they should be, please PM me and I'll give you some more details. Thanks. Quote Link to comment Share on other sites More sharing options...
Guest nochex_uk Posted January 15, 2007 Share Posted January 15, 2007 not entirely true - users holding debit cards with a visa/mc card scheme logo will be able to put in a chargeback. Chargeback Scheme. When purchasing anything - always use a Credit Card - you can charge it back should anything go wrong/not materialise etc. Debit cards = no such luck. Quote Link to comment Share on other sites More sharing options...
Guest Brivtech Posted January 16, 2007 Share Posted January 16, 2007 This is pretty scary stuff. (Not an oh dear) I thought the chargebacks were paid from the actual merchant? If Velocity are the merchant service provider, why are they having to pay out? Are they not simply a go-between between the credit card company and the merchant? What can be learned from this? Quote Link to comment Share on other sites More sharing options...
Al Brookbanks Posted January 17, 2007 Share Posted January 17, 2007 Well velocity had two kinds of accounts. Full merchant accounts and a system where by you can use their merchant account if you like. It was accounts using their merchant account that committed the fraud and velocity had to pay it back. So.... you best bet it to make sure you have your own independent merchant account with your bank. Correct me if I'm wrong peeps. :) Quote Link to comment Share on other sites More sharing options...
Guest EverythingWeb Posted January 17, 2007 Share Posted January 17, 2007 Exactly as Al said :) Quote Link to comment Share on other sites More sharing options...
Guest Brivtech Posted January 17, 2007 Share Posted January 17, 2007 I see, that's a big relief to know that! I see their website is still up and running like nothing has happened. :) Quote Link to comment Share on other sites More sharing options...
Al Brookbanks Posted January 17, 2007 Share Posted January 17, 2007 I think all the staff walked out at velocity so everything is in place. Apparently new accounts will be given to MetaCharge. DISCLAIMER: I may not be right so please don't put your full faith in my comments or quote me on them. Quote Link to comment Share on other sites More sharing options...
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