Moneybookers
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| Moneybookers Ltd. | |
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| Type | Online Money-Transfer Service |
| Founded | London UK (2001) |
| Headquarters |  London, England / UK |
| Parent | Gatcombe Park Ventures Limited |
| Website | www.moneybookers.com |
Moneybookers is an e-commerce business that allows payments and money transfers to be made through the Internet. It serves as an electronic alternative to traditional paper methods such as checks and money orders. Moneybookers performs payment processing for websites, online auction sites, and other corporate users.
Unlike many competing online fund transfer services (e.g. PayPal), Moneybookers requires identity verification before using their service to minimize fraud and prevent money laundering. Additional verification steps raise the maximum amount transferable to €20,000 or equivalent within a 90-day period. Moneybookers does not usually get involved in merchandise disputes and the availability of credit card chargebacks may be limited.
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History
The moneybookers.com domain was created 18 June 2001. Almost 2 million new users registered with Moneybookers in the initial 1.5 years of operation. Currently (as of March 2008) Moneybookers claims to operate in all countries and handle over 4.2 million accounts.
Business today
Moneybookers allows customers to send, receive and hold funds in 29 currencies worldwide and offers local payments in 30+ countries. Moneybookers also offers escrow payments (for online trading) as well as online SMS and fax sending services. Moneybookers charges its fees directly to the sender of the payment, and not - unlike the alternative PayPal - the recipient. The seller receives the full amount owed to him.
Key features
Moneybookers offers the following services:
- Fee-free online accounts in one of twenty-nine available currencies.
- Instant online money transfer services between users at a nominal cost (1% but not more than EUR 0.50).
- Funds upload/withdrawal using local payment methods (bank transfer, payment card, cheque).
- Transparent fee structure, low funds withdrawal fees (€1.80 typical).
- Integrated web SMS gateway and fax sending service.
- Merchant solutions: free website integration, card processing with full chargeback protection.
- Multi-language website.
Advantages of using Moneybookers include:
- Relative simplicity of use combined with apparent high security of transactions (incl. multiple user verifications).
- Possibility to register bank accounts from different countries under one Monebookers profile (provided they are in the same name) and to transfer funds between them (unlike PayPal where you need a separate PayPal account for every country).
- Options to add funds to the account using a range of methods including bank transfer and payment cards (depending on the payee's country).
- Options of funds withdrawal to a credit card (sometimes processed as transaction reversals), via bank transfer or cheque (depending on the recipient's country).
- SMS-based account updates.
Major drawbacks as reported by users include:
- Lack of multiple currency support - accounts are denominated in a single currency only. What is more, the account currency can never be changed (unless your account has no transaction history), even when you move countries.
- Limit on the number of credit/debit cards registered to an account (currently, four). What is more, once registered, a card can never be de-registered (removed) from Moneybookers - it is only removed when it expires.
- Limit on the number of email addresses registered to an account (currently, five). What is more, once registered, an email address can never be de-registered (removed) from Moneybookers, thus reducing the available limit.
- It is not allowed to open more than one account in the same name, and there is no option to close (cancel) an account. Users are stuck with the same currency and registration details (email addresses) practically forever.
- The address verification procedure (by post) cannot be retaken in case it fails (e.g., due to a letter lost in post).
- Card transactions are charged a 1.9% fee but (unlike PayPal) are processed as cash transactions, resulting in card issuers additionally charging standard cash withdrawal fees.
- Internet forums abound in complaints about poor efficiency of customer service.
Bank status
Moneybookers is registered as a Money Service Business (No. 12115607) with HM Revenue and Customs in the United Kingdom, and is licenced to operate within the EU. Moneybookers is regulated by the Financial Services Authority of the United Kingdom.
