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1) What bank is issuing the card product
CHOICE BANK of BELIZE. Before people start bashing us for using an offshore bank the answer is simple:
No USA bank will allow to setup MasterCard to non US residents. We spent 2 years in negotiations but none agreed. So we had to fall under MC international jurisdiction for that.
2) What is the method for funds storage at the card product level or a
general ledger account (i.e. is each card a "registered" account for the
cardholder or a number only account attached to a general ledger or wash
account)?
The account is under Paxum Inc. There is separate security deposit account that was setup by us with the bank, as per our agreement with MC and the bank. That is standard way to operate an e-wallet.
3) Does the company's and the bank KYC procedure comply with banking
regulations and is there a positive statement to that effect in the
terms and conditions as well as the cardholder advisements?
We fully comply with KYC requirements set forth by MC and the Bank. We are issuing the cards only to verified accounts since we don't want to play with fake card users. We don't want to be accused of Laundering Money. Better safe then sorry in our opinion.
4) Although we understand that the bank's and the company's joint AML
efforts must remain proprietary, are there clearly defined velocity
limits (amount of transfer, frequency of transfer et al) defined in the
terms and conditions?
Limits for transfers between paxum current accounts are set by us. We are the ones who have the last word on them. Paxum MasterCard has limits set by MasterCard International and the bank. We were negotiating for a long time to get webmasters usable limits. I think we succeeded in that, $2500 per day is way more then Epass and others offer.
5) Does the bank issuing the product have the appropriate measures in
place to support SAR (Suspicious Activity Reporting) for transactions as
required by banking regulations
We are regulated by Belize banking laws. We fully comply with them.
6) If the cards have a direct account attached to them, are those funds
guaranteed by the FDIC or the issuing bank's country's regulatory authority?
The cards are issued by a Belize Bank. FDIC has no jurisdiction in Belize. The funds that are held in the bank by Paxum Inc.
7) Is the bank aware of the nature of the clients utilizing P2P (i.e. adult)
p2p is within paxum ewallet account
card to card (witch will be activated at a later date) is from master card to mastercard and the bank is fully aware and we have no restriction for ADULT. the only restriction we have and don't accept is GAMBLING.
8) Is the company issuing the product and managing the wallets
independently audited and are those audits made public
We have been audited by the Bank and Mastercard. We do plan to get audited at least once a year. Whether it will be made public or not is something that will be decided later.
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