Payment processor Payaah.com ceased customer transactions February 1, citing Visa and MasterCard restrictions on third-party billing. Payaah said they made the move on the advice of their acquirer bank, BB&T Bank of Virginia.
"We have pursued all possible alternative processing options for our vendors and to keep Payaah services," said a letter from Payaah's legal department that circulated on the Web late February 1, "but unfortunately the Visa/MasterCard restrictions apply to all merchant banks in the United States."
The letter said vendors now distributing products and services through Payaah will no longer be able to process transactions, "and we are forced to give notice that, effective February 10, 2005, your Payaah Vendor Agreement will be terminated. This unfortunate decision was made due to circumstances beyond our control."
The company said funds and reserves would be released on time and at their normal schedule.
Those who have further questions should contact the company in writing only, at 34 Vans Terrace; Lake Katrine, NY 12449; to the attention of Payaah's Legal Department.
