What does Visa’s suspension of WaveCrest’s membership mean for FuzeX?
VISA recently, and rather suddenly, announced that they will be suspending their membership relationship with WaveCrest forthwith. This ultimately means that WaveCrest has been required to “immediately close all Visa cards” as a result.
This move has resulted in companies with cards issued via WaveCrest (TenX, BitWala and Cryptopay to name a few) having a very busy weekend, with some holidays being cut short at TenX to deal with the issue.
Visa informed the media that the cards had been suspended due to “continued non-compliance with our operating rules”, and stated that other Visa issued cards, not issued through WaveCrest, would have no issues:
“Visa has other approved card programmes that use fiat funds converted from cryptocurrency in a number of jurisdictions. The termination of WaveCrest’s Visa membership does not affect these other products. Visa is committed to the security of its ecosystem and compliance with Visa’s operating rules is critical for ensuring the safety and integrity of the Visa payment system. Our issuers’ card programmes must comply with our membership regulations, as well as all applicable laws.”
What about FuzeX?
But does this have an effect on the FuzeX Card, you ask? Well, the short answer is: No. But rest assured, we will be keeping a close eye on the situation.
We were in the very initial stages of talks with WaveCrest regarding the issuing of our FuzeX Cards, but we decided that they weren’t the right fit for us moving forward. Instead, we began talks with other issuers which have proven to be more fruitful, and a much better fit with FuzeX and our vision for the future.
Although we would absolutely love to tell you who the issuers are, until negotiations are finalised and contracts executed we, unfortunately, cannot say very much. But we will tell you as soon as we can (Expected Announcement Q1 2018).
Why is this not a problem for FuzeX?
To echo Visa’s sentiments, when talking about their other approved programs, this does not effect all “crypto-cards” just the ones issued through WaveCrest. Basically speaking, there are other issuers out there besides WaveCrest that can, and are currently, being used.
Additionally, Visa stated explicitly that this was to do with “continued non-compliance issues”, and as they said in their statement (we quoted through CNBC), “Our actions were not specific to cryptocurrency — but rather reflect the issuer’s failure to comply with Visa’s policies that ensure the safety and integrity of our payment system.”.
Basically, WaveCrest has not been compliant to Visa’s terms and TenX, BitWala, Cryptopay and all of their customers are now paying for it (or not paying for it, or anything for that matter, with WaveCrest issued cards for the foreseeable future).
Got some more questions?
If you’ve got anymore questions about this, feel free to drop in to our Telegram group for a chat.