Another NETeller Crisis?

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Unconfirmed reports suggest that non-US card users now have a problem

NETeller card users could be in for a tough time if an email received around the world and ostensibly emanating from the Isle of Man-based e-wallet is genuine and correct.

The email, addressed to "Dear NETeller Merchant" advises merchants that NETeller's third-party provider for the NETeller Card has recently advised that under the rules relating to the Cirrus/Maestro Network, it can no longer support the cards.

"Consequently," the email goes on to explain, "...members with NETELLER Cards will be affected. This should not affect you as a NETELLER merchant."

Users of the card around the world will be affected, however. The email advises that effective immediately members will not be able to withdraw funds from their e-wallet to their NETeller Card. Users will have until May 2, 2007 to use the funds that are presently on their Cards.

The email advises merchants that NETeller will be communicating with card holders "....encouraging them to use the funds on their Cards before this date. After May 2, we will credit remaining funds on their cards back to their NETELLER e-wallets."

The email ends with an apology to merchants and an assurance that NETeller is working hard to provide new card services as quickly as possible.

As we went to press it was not clear that the email was genuine, and NETeller had not responded to emailed requests for confirmation and clarification.

Many users who for unknown reasons received this email to merchants were outraged that the e-wallet has not yet contacted users as a priority or given them a reasonable window of opportunity to move their funds. Nor has the company displayed any indication on the website that there is a problem, why and what the company is doing about it.

In a trial on the site, players found that their attempts to transfer funds from the e-wallet to their NETeller card went smoothly until the final confirmation, when the transactions were denied with no more explanation that "An error has been encountered"

The lack of notification and communication with users on the current issue - if true - will do nothing to improve NETeller’s already dim image in the marketplace following its activities in freezing US funds and suspending dealing in its shares on the AIM.

STOP PRESS:

The report is true - Casinomeister owner Bryan Bailey reports that he managed to contact a NETeller source and the report is confirmed. Bailey reports:

"I just spoke with them over the phone and the card is no more. They said they are scrambling at the moment to update the website and to notify all customers. They found out about this yesterday.

"All funds in the card will be transferred back over to the ewallet section. They aren't sure how long this will take after the 2nd. Could be hours; could be days."