Plimus Shuts Down Vendors and Affiliates Without Warning
California based online goods payments processor once popular with affiliate marketers, has shut down many of their vendors, and affiliates, in certain markets. While that in itself wouldn’t be a problem, Plimus shut down these vendors without warning! Not even 24 hours notice, so no time to find an alternative payment and affiliate platform to sell their wares. In addition they are withholding payments owed to vendors for up to 3 months, and plimus affiliates up to 30 days.
In an email to vendors just yesterday, Plimus explains “The credit card associations (including Visa and MasterCard) are increasing their scrutiny of merchants selling products within a number of online segments. Affected market segments include, but are not limited to, the following:
- Online auctions
- Foreign Exchange (FOREX)-related products
- Media
- Poker chips and other virtual currency
Next the complete lack of notice, the second scariest part of the plimus statement above is the “market segments include, BUT ARE NOT LIMITED TO….” portion. Basically, if you’re using PLIMUS for products/services in ANY market, they are saying, “dear valued customer, Plimus may have plans to screw you too, in the near future.”
If you sell affiliate products, either your own as a vendor, or someone else’s as an affiliate, I highly recommend you steer well clear of Plimus, as they clearly DO NOT have their clients best interests in mind. Any company who would just shut down vendors with no warning after years of problem free service, clearly have another hidden agenda. It’s rumored Plimus shut down these vendors and affiliates, and suspended outstanding payments owed indefinitely, due to a cash crunch on their part. That is, Plimus doesn’t have enough cash to meet the payments they owe their vendors and afffiliates. Is this true? I certainly have no way of knowing. Is it possible? Definitely, as they decided to spring this sudden suspension just 4 days before they were obligated ot make payments to their vendors and affiliates. Coincidence? I’ll let you decide.
As an affiliate, this webchicklet only stands to lose $1200. Vendors, on the other hand, stand to lose much, much more. In addition, all their recurring payments with existing clients are lost forever! Shame on you Plimus. This incident shows a complete lack of any kind of professional conduct on Plimus’ part, as well as a complete lack of business ethics.
Here’s two different letters sent to vendors:
“Dear Vendor,
We are writing at this time to notify you we are exercising our right to suspend your account and payment as your business is in violation of the Plimus Prohibited Items Policy under this section: Financial services and of any type including and not limited to financial advice, all types of trading, insurance, currency exchange, trading signals, payment services.
Should there be any reference to Plimus on your web site, we ask that you remove it at this time.
In order to cover potential refunds and chargeback as well as any legal costs incurred to Plimus any payments due to you from Plimus are held for a period of three months and fifteen days starting from the last day of the month of your account suspension date; after which funds will be released to you per a monthly ongoing review and based on refund and chargeback impacting your account. In case of a negative balance in your Plimus account, Plimus will invoice you for the balance amount and expect payment within 30 business days.
We would like to take this opportunity to wish you success for the future and thank you for thinking of Plimus for your business needs.
Please let us know should you have any questions or concerns.”
and the other letter from Plimus:
The credit card associations (including Visa and MasterCard) are increasing their scrutiny of merchants selling products within a number of online segments. Affected market segments include, but are not limited to, the following:
- Online auctions
- Foreign Exchange (FOREX)-related products
- Media
- Poker chips and other virtual currency
As you offer products that fit within one or more of these segments, Plimus must now undertake a detailed and exhaustive review of your account, and its compatibility with the Plimus platform. This review will take approximately 30 days; at its conclusion, we hope to be able to advise you that we can continue to provide e-commerce services to your business.
During the period of this review, we must undertake two steps. First, the payout scheduled for the 15th of this month will be suspended for a period not to exceed 30 days, pending our confirmation that all transactions will be honored by the card associations. Second, your account will be suspended as of Thursday, January 12th, which will mean that no further transactions can take place until further notice.
We recognize that this represents a significant business challenge, and apologize for the inconvenience. If you believe your account should not be considered to be within one of the stated market segments, or if you have any questions of concerns, please contact Vendor Support directly.
And here’s the one sent to Plimus affiliates affected (I got mine at 10:40 ET!!):
Dear Affiliate –
The credit card associations (including Visa and MasterCard) are increasing their scrutiny of merchants selling products within a number of online segments. Affected market segments include, but are not limited to, the following:
- Online auctions
- Foreign Exchange (FOREX)-related products
- Media
- Poker chips and other virtual currency
As you currently are promoting products that fit within one or more of these segments, Plimus must now undertake a detailed and exhaustive review of your account to assess the stability of the products sold via your efforts.
During the period of this review, we must suspend payments for your account for a period not to exceed 30 days, pending our confirmation that all transactions will be honored by the card associations.
We recognize that this represents a significant business challenge, and apologize for the inconvenience. If you believe your account should not be considered to be focused on any of the stated market segments, or if you have any questions or concerns, please contact Vendor Support directly.
Best Regards
The Plimus Team
***
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This just happened to my husband and I and it’s a FREAKIN NIGHTMARE! Our account was suspended and my husband cannot even login to check the money he had made through the site. I am wondering are there any additional steps we can take to recover our funds? Of course I am thinking to first contact The Better Business Bureau and The Attorney General.
Were you a vendor or an affiliate? My understanding is all affiliates can still log into their accounts and see the money that is “SUPPOSED” to be paid out NO LATER than February 15. We will see what happens. I will write an update when/if I get my payment.
I would definitely take any measures necessary to get MY money from Plimus. I think they acted in very bad faith, very unprofessionally, and have not given a lot of access/communication to those affected. It almost seems like they are treating vendors as if they did something bad/wrong/illegal, yet it was Plimus who approved them as vendors and/or affiliates. Suddenly, and without warning, they freeze accounts and money. Wrong, very wrong. And you’ll never see the cowards at Plimus make any public statement or apology. I would advise EVERYONE that you know, NEVER use Plimus as a vendor, or as an affiliate, as you never know when (or why) they will shut you down and withhold funds owed, seemingly on a whim
Best of luck to you.
Update: Plimus sent me an email notifying me of a pending payment last night, so it appears I’ll be getting paid *some* of the funds they owe me. I say some because, they appear to be withholding 35% for a reserve, for future potential refunds. I think based on my previous refund rates, they could have definitely reserved much less. None the less, I’m happy I am getting the money owed to me. Now, if I could just find a new affiliate platform for the product I was selling so well!