Zombaio Having Serious Problems
 

It will be interesting to see what their policy is when someone chooses weekly or bi-weekly payouts and they still skip/miss payouts on time. Do we get charged the extra fees when Zombaio has the money to pay out or are they waived?

Doubling the reserve and increasing rates 3.5% simply to get the normal weekly payment. Ouch. Seems a little steep.

Not only that, you are still getting paid 20 days AFTER the period ends.

If anyone needs help or advice getting set up with Epoch, CCBill, or going merchant so that you can get your hard-earned cash faster, feel free to let me know. ICQ is 147479144. It's not as hard as one may think.

I presume the only clients who will opt for this option are the high volume clients who need their money faster.

In other words, that extra 3.5% as well as reserve could be used to pay off the low volume clients who opt for bi-weekly or monthly payouts.

wish u guys all goood luck

"Whilst"?

On a positive note I'm glad they're doing this. I thought to myself several times in the past I would much prefer to pay an increase in fees to get my money rather than not getting it at all.

It is easy to criticize, especially when you have no dog in the fight, and just like to play to the mob, but as a Zombaio merchant, I actually found that email to be pretty sincere sounding and moderately re-assuring.

I am not crazy about the 20 days, but I would rather have a 20 day settlement that always arrived on time than a 10 day settlement that arrived after 30 or 40. Of course, time will tell if they can deliver on that, but basing your model on what you think you can deliver rather than what you think people want is a start.

That revised pricing and settlement model where you choose between better rates or quicker payment is very interesting, and maybe a little cruel come to think of it!

Sounds like they are trying to get their shit together. That's good. I hope they stay vocal. This letter probably could have saved them a lot of money and headaches had it been sent off a long time ago.

Ultimately, the proof is in the payouts.

For me its very close to too little to late, I have re-bills with them and they're currently my backup backup processor for basically every site except 1. I'm annoyed with them but i don't hate them I guess.

I believe what they said in the email it lines up basically with everything I've been hearing from people who supposedly talked to Tomas weeks ago, and I've also over the past couple weeks seen a decent number of my payouts come BUT this is an email that a business that has its shit together would have sent out 6 to 8 weeks ago. Instead of the BS they were spewing for over a month about all the missing payments.

I don't mind the 20 day settlement, don't mind price changes, I'm perfectly capable of looking at the options of the different services available and making a choice but Zombaio has gotten to the point where even if they mean well and are sincere (which I sorta think they are) I question if they are competent. And being unable to pay because of bad business decisions, is honestly for anyone expecting payouts is just as bad as a company being unable to pay because they stole money. Either way the end result is me not getting paid or not getting paid on time.

I feel better about them that I did a month ago, BUT they still have a ways to go before I'd recommend them or use them as a primary biller.

When did you get that email? Any other Zombaio users get the same email?

I don't understand!

A processer collects money, does all the transactions, PROCESSES THE MONEY - then the money is.....where? Delayed? What are they DOING with all the monies and cash flow they are collecting every second of every damn day?

Sounds to ME like robbing Peter to pay Paul. When a company does this it's tick tick tick before BOOM it's all over.

Good luck to any Webmasters still using Zombaio but I would get OTHER PROCESSERS SETUP ASAP if I were any of these Webmasters. Don't get fooled again, do NOT wait, setup your backup plan NOW.

Good luck everyone. :)

Reads like a long winded way of saying you're fucked.

British English.

Yes, I received it as well.

What he said....

Exactly.

I got it as well. I'm not worried. Porn is an honorable profession. I'm sure that business will go on as usual.

Agreed. There is nothing wrong with a company raising its prices. Sometimes it just has to happen. They are also offering good choices too by offering a lower rate for slower payout.

Good luck Zombaio.

They know the jig is up and they are just trying to string it out as long as they can. Tomas's explanation is pure bullshit and make absolutely no sense...1-2 month delays...please..lol!!! It makes more sense to pay the mc/visa fees and move on.
People get with Verotel, CCBill,Epoch or anybody else before it is too late, I learned my lesson the hard way...be smart and move on while you can with minimal damage

Can someone please share why there is a Delay?

If Visa/MC settle to their account within 48 hours, why can't they payout then?

I could understand if certain cards too longer to clear that some money might not credit, but wouldn't 90% of the money settle that fast?

Because they are using the money for something else, plain and simple and now they are so far behind...they have come up with new terms to seem like they are paying you on time...but this won't happen for several months or never, since people are pulling their accounts..it is Ponzi 101

Never good when a CC processor is in trouble.....DMR......iBill.........plenty of history.......but lets hope what they suggest works for all the webmasters out there who need to pay bills.

They must be in serious trouble if by default they are moving everyone to once a month payments while decreasing fees 1.2%. That suggests short term cash flow is more vital to them than long term cash flow. If everyone stays on the monthly option that will mean less profit for them over the long term. But this way they get to avoid many payments for almost another entire month.

Or do I miss something?

You got it right and trust me all those monthly payments won't be on time either

From an old post in 01-05-2011:

Full post


Let me get this right. So Tomas said in 2011 that the 5% reserve was due to the Mastercard membership.

Now when Cawen Financial Group AB is no longer a Mastercard Compliant Service Provider, what is the "reserve" then exactly for?

http://www.mastercard.com/us/company...st-1-15-14.pdf

Also "Tomas", care to document that Cawen is/was a legal financial institution?

Because strangely the financial authorities in Sweden (Finansinspektionen) do not seem to include Cawen Financial Group AB on their list of companies who are allowed to provide financial services.

http://www.fi.se/Register/Foretagsregistret/

:2 cents:

tl;dr version: money is in motion

... English not your first language or do you speak "American English?" :p

A 3rd party processor is no different than, for example, you and me launching a site together and you running the site and me doing the billing. In that scenario I am the 3rd party processor, and you are the webmaster.

Now let's assume for a minute that regulations allowed it, and that I was crazy as all hell, I could come out tomorrow and say, "HEY EVERYONE PROCESS WITH POMPOUSJOHN I'LL DO IT CHEAPER THAN ANYONE AND PAY YOU FASTER - YOU DO NOTHING I DO EVERYTHING"

So now suddenly I have to work just as hard as any other ISPS for less money. And who is going to process with me?

1) people who have nothing to lose - already been rejected or shut down by everyone else. Why were they shut down? Most likely for a good reason. Most likely they blame the person who shut them down though cause, you know, dumbasses are never at fault for anything. And most likely they will continue pulling whatever shit got them shut down.

2) people who can't afford to pay what everyone else is charging Why can't they afford it? 1 out of 100 is a fast learning pilgrim just starting down the path, the other 99 are fucking losers who have no business running a business of any kind and if they did they would have a few bucks to invest or at least the good sense not to process with the cheapest shop in town.

3) scammers who are running a risky game and want to mitigate those risks by reducing their buy-in to zero since they know they are going to get busted sooner or later and have to rinse/repeat anyway. The fast payouts make me even more attractive to these types.

So now I've got a nice portfolio of fuckups, noobs and scammers and I am paying out of pocket to set them all up and make them think they have a place at the table. Not only is each of them literally costing me money to get them started, but since I am trying to undercut my competition I am not making even half what my competitors are making per transaction, from their customers.

To top it all of their fuckups are straining my relationships with the acquirers I get my merchant accounts from, the ones who make deposits into my accounts that enable me to pay my clients, and now reserves are being held, processing rates increasing, deposits delayed etc.

WTF was I expecting? I guess maybe I thought I could swoop in and scrape the cream off of the top and leave the "idiots" that had been in the business for years in the dust with my amazing volume. Well a few years down the road, the ends stopped meeting and it was time to change the strategy, so I guess now I'll come in with fewer benefits except this time instead of the new kid on the block who is at least an unknown entity, now the risks of doing business with me are well documented and no one is giving me the benefit of the doubt anymore.

Will it work? Who knows. I guess we'll see.

Personally I'll be the first to admit my issues with Zombaio come from a bad experience I had with them years ago. They shut down my account and told me some bold face and lies about why that even an idiot would not believe.

But, I am very glad that happened, and they did pay me every cent. It was one of the things that got me looking for my own merchant processing accounts and I ended up with private merchant accounts which was immensely better for everyone involved.

Also, having my own merchant processing accounts helped me to understand why Zombaio was so freaked out over my stats and why they did what they did. I still think they are idiots though and I pity anyone who works with them because many would be better off elsewhere and those who really need what they offer and cant get it anywhere else are in a pretty sad state.

In the end, I am better off without them and they are likely better off without me. So it's all good.

/rant

The reserves "should be" (not saying they are) solvent, untouchable funds used to underwrite the account. Not for anything else. I saw nothing in their terms that stated they can use my money, my reserve, to fund anything else. It should literally be illegal for a company to take money, other than their fees.

I hope Zombaio can catch up. With these terms, i am not sure if they can sustain it.

Have a little faith people.

Stop the witch hunt.

Everyone should want them to succeed. If they do, you do.

Drag them down like GloBill and iBill, who does that help? No one.

Chill.

Witch hunt please...Their problems are because of their fuck ups...If they fail it will be their own doing.

Don't loose your mind I speak English good.
(Hah - how many errors in that sentence? LOL)

Whilst I try to explain this to the, let me paint a picture of a world where pretentious nutsuckers don't use words like 'whilst'. This may take awhile...

I said 'the'! I should get points for that right there.

:D

Whilst i have no websites and i edufuckate you

supposed to get payments from them in early June... moving to ccbill soon though..

I get the bashing Zombaio shit. Even by people I don't like and think are cowards on this board.

I bash shitty people here on a regular basis. But I don't do it with mob mentality I do it because they have stole from me or have hounded me, sometimes outside this forum.

I'm just not sure what you Zombaio bashers want to accomplish. If Zombaio goes down because lets say somebody even listened to your retarded shit. What would that accomplish?

You act like youre here to help, I see no help in Zombaio going out of business or being trashed by your fellow webmasters.

Only one way to tell. Did you get your money? I did.

You guys must stay away from them before regretting it.

My advice to ALL of you is CUT your loses and GET OUT NOW!

First of all almost no one is here to help anyone but themselves. I say almost cause just maybe, you know?

Second clearing the playing field of idiots makes it easier for serious players to get the job done.

Finally if Zombaio could be brought down by anything people say here then they put themselves in that position. People talk shit about Paypal, Wal Mart and the Federal Government constantly, none of those are in any danger of going tits up any time soon. Not being an idiot is a good defense against idiots.

What does nearly every biller that is not Zombaio have in common? - No late payments, ever.

Couldn't have said it better

I'm getting flashbacks here. I remember people saying such things in regards to Epassporte too.

https://gfy.com/showthread.php?t=985088

Then there was Steve Lightspeed's famous one:

http://m.gfy.com/showthread.php?t=985348

The way I see it, let those who want to take the risk do so. Let those who want to get out, do so. It's up to each individual what they want to do. Nothing wrong with sharing info or thoughts.

Zombaio said: our issue is scale economy: our business model it would work if we had many more customers. We have too few, so we change business model (a little late).

Response includes:

This will reduce the Zombaio customers. Further changing the business model parameters, less cheap and/or later payments.

At this point there can be 2 trends and 2 outcomes:

Ponzi outcome:

1) This will reduce the Zombaio customers. Further changing the business model parameters, less cheap and/or later payments.
1b) This will reduce the Zombaio customers. Further changing the business model parameters, less cheap and/or later payments.
1c) This will reduce the Zombaio customers. Further .. well can't lower further, it is the famous collapse.


Bro outcome:

2) Payouts and terms it was changed, but coming as promised, so more people keep Zombaio, and new guys use it.
2b) Payouts and terms it was changed again into better and coming as promised, so more people keep Zombaio, and new guys use it.
2c) Payouts and terms it was changed again into better and coming as promised, so more people keep Zombaio, and new guys use it. Zombaio it is stable.

I got the email, too.

I'm still skeptical.

And what about the fact that their LLC is "suspended" in California, as someone on here pointed out a little while ago?

Also, I have to say..I used to have a bank account at a California bank called First Federal. During the time so many banks were failing because of bad mortgages, I remember getting a similar reassuring letter from them, saying their exposure to bad loans was minimal.."we'll be in business for a long time, yada yada"..

Well, First Federal went under not long after that, and got bought out by One West.

Does a normal merchant pay once a month, no. Sign of a bad thing coming.

What is their "normal fee" to begin with?