Dear Valued Client:
As you may be aware, MasterCard fined Paycom $1.5 million several weeks ago. Our bank held funds from subsequent settlement proceeds at that time. Paycom has no plans to pass these fines through to you, as our portfolio was not out of compliance nor should we have been subject to a fine under any MasterCard Fine Program.
As you may also be aware, Paycom has filed a lawsuit in Federal court here in Los Angeles against MasterCard for the above and many other issues related to MasterCard's unfair dealings with Paycom.
The $1.5 million fine and the cost of litigation has strained our cash flow. As a result, we must adjust payment days from Tuesdays to Fridays, beginning next week. Payments due today, Tuesday, June 10th are being made today. Payments due next week, on the 17th will be made on Friday, June 20th, a delay of 72 hours. Payments to Resellers will not be affected and Resellers will continue to be paid on Tuesday's. We are projecting that we will be able to return to Tuesday payments as circumstances change. We are not projecting any further delays, nor do we believe that any additional fines should be levied.
Paycom fully understand that delays in payments are problematic to our clients and a reminder of situations in Paycom's past. You can be assured that those days are gone. This issue is related to the MasterCard fine and the costs associated with the lawsuit. Over the past 3 years we have worked diligently to regain your confidence in our ability to pay you on time, or to keep you informed before a delay. This is one of those times that we all dread; yet it is unavoidable. We want to give you as much notice as possible about this delay, albeit only 72 hours.
Clay, Joel and I are asking for your continued support, confidence and loyalty to us and to Paycom. We are working hard and fighting hard for our mutual success.
Thank you,
Chris Mallick
Chief Executive Officer
--The Team at Epoch
As you may be aware, MasterCard fined Paycom $1.5 million several weeks ago. Our bank held funds from subsequent settlement proceeds at that time. Paycom has no plans to pass these fines through to you, as our portfolio was not out of compliance nor should we have been subject to a fine under any MasterCard Fine Program.
As you may also be aware, Paycom has filed a lawsuit in Federal court here in Los Angeles against MasterCard for the above and many other issues related to MasterCard's unfair dealings with Paycom.
The $1.5 million fine and the cost of litigation has strained our cash flow. As a result, we must adjust payment days from Tuesdays to Fridays, beginning next week. Payments due today, Tuesday, June 10th are being made today. Payments due next week, on the 17th will be made on Friday, June 20th, a delay of 72 hours. Payments to Resellers will not be affected and Resellers will continue to be paid on Tuesday's. We are projecting that we will be able to return to Tuesday payments as circumstances change. We are not projecting any further delays, nor do we believe that any additional fines should be levied.
Paycom fully understand that delays in payments are problematic to our clients and a reminder of situations in Paycom's past. You can be assured that those days are gone. This issue is related to the MasterCard fine and the costs associated with the lawsuit. Over the past 3 years we have worked diligently to regain your confidence in our ability to pay you on time, or to keep you informed before a delay. This is one of those times that we all dread; yet it is unavoidable. We want to give you as much notice as possible about this delay, albeit only 72 hours.
Clay, Joel and I are asking for your continued support, confidence and loyalty to us and to Paycom. We are working hard and fighting hard for our mutual success.
Thank you,
Chris Mallick
Chief Executive Officer
--The Team at Epoch
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