Money Wirecard scandal: 150,000 French prepaid card customers penalized
shock at Wirecard - auditors refuse certification
The balance sheet scandal about the payment processor never ends. Now the Dax group has to postpone the presentation of the annual figures again - and sees itself as the victim of a "gigantic fraud". The share price crashes. © Reuters / W. Rattay Provided by Deutsche Welle Wirecard boss Markus Braun faces a heap of rubble: The company that he has built over the past two decades from a startup to a global payment processor has come into distress.
The 150,000 French holders of Transcash prepaid cards can breathe. As of this Tuesday, they will again be able to use their cards to pay, withdraw or transfer money. Since Friday, all operations were prohibited after the bankruptcy of the German giant of online payments Wirecard.
Suspected of having inflated its accounts with fictitious funds in the Philippines, the German group which employs 6,000 workers filed for bankruptcy on Thursday, creating "a scandal without equivalent in the world of finance" by the admission of the German government . This scandal, already compared to that of Enron in the United States in 2008, led to the suspension on Friday of the activities of its English subsidiary, which issues prepaid cards from Transcash (company MF-Tel). And at the same time the suspension of its 150,000 prepaid cards in circulation in France.
Wirecard's ex-boss Braun has to sell pledged shares
(Bloomberg) - Wirecard AG boss Markus Braun, who has just been exchanged, is, according to informed circles, selling off a large part of his share package to the payment service provider, which is deeply involved in a balance sheet scandal. These are share certificates that he deposited in 2017 as security for a loan of 150 million euros. After Wirecard admitted that a billion dollars could not be found, the company's share lost 72% in value last week.
A commercial gesture?
“We are happy to inform our customers that after three and a half days of audit, the FCA ( Editor's note: the financial control authority in Great Britain ) authorizes since Tuesday midnight the English subsidiary of Wirecard to resume its payment activities, which should quickly unblock our cards, ”says Rémi Domenge, marketing and communications manager at Transcash. As of this Tuesday, the 150,000 holders of prepaid cards should be able to use it again.
"We continue to closely monitor Wirecard's activities and certain requirements remain in effect," the FCA said in a press release. This should not, however, affect the services that Wirecard provides to its customers. This means that customers can use their cards now or very soon if necessary. ”
Wirecard's main customer in France since 2018, Transcash is now considering changing providers or "expanding to other card issuers to limit the risk of blocking in the future," says Rémi Domenge. Aware of the embarrassment linked to the impossibility of using its cards at the end of this month, the company "is thinking about a commercial gesture" for its 150,000 prevented porters.
browser maker Opera buys European fintech .
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