DEFINITION of 'Payza'

Payza is an Internet-based payment processing service that allows individuals and businesses to send and receive funds using bank transfers as well as bitcoin.

BREAKING DOWN 'Payza'

Payza is a Montreal-based company founded in 2004. Since 2012, it has been a subsidiary of MH Pillars Ltd. of London, United Kingdom. While not as widely-used as other online payment services such as PayPal, it has become a relatively popular method of sending remittance payments. Similar to other digital payment companies, Payza provides a mobile application that allows individuals to access the service from their phones.

Payza enables individuals to deposit funds into their accounts, with the balance held in an e-wallet. Funds can be used to make payments through the system. Deposits can be made several different ways depending on the account holder’s location, and may include wire transfers, bank transfers, credit and prepaid cards, and bitcoin. Funds can be withdrawn through bank transfers, wire transfers, prepaid cards, and bitcoin.

Payza also supports payments to businesses, with a particular focus on e-commerce. It offers a snippet of code that can be added to a website to create a “Buy Now” button, can integrate with online shopping carts supported by third parties, and can be added to a list of in-page payment options. Customers who already have a Payza account can pay for goods and services using their e-wallet. They can also use a credit card or prepaid card, as well as other payment options available in their geographic areas.

Opening a personal or business account with Payza is free. Funding an account is free for bank transfers over a certain threshold - $200 in the United States – but fees are charged for funding via credit card or bank wires. Account holders can also fund using bitcoin, but Payza sets an exchange rate that is several percentage points lower than the bitcoin spot market price.

Payments sent through the system do not incur a fee. Fees are instead charged to the party receiving funds, with fees varying based on what payment method was used. Most fees include a percentage of the transaction value plus a per-transaction fee. Credit card payments tend to carry the highest percentage fee. Withdrawing funds from a Payza account is free if the eGift card option is chosen. Bank transfers incur a flat rate, while using bitcoin incurs either a mining fee or an exchange rate penalty.

As a service provider, Payza is not regarded as strong as more well-known companies. Customers have experienced significant service disruptions, which often involve funds being unexpectedly frozen without a thorough explanation.

In 2013, U.S. account holders were suddenly prevented from accessing funds, with the company blaming problems with a third-party provider. Some complaints accused the company of locking access to account funds so that it can collect interest. For business owners, this can make Payza an unreliable option when it comes to choosing a merchant account, since businesses need consistent and uninterrupted access to their funds. The U.S. Department of Justice opened a criminal investigation into Payza in 2016.

RELATED TERMS
  1. Returned Payment Fee

    A returned payment fee is a charge a credit card company may ...
  2. Wire Transfer

    A wire transfer is an electronic transfer of funds across a network ...
  3. Prepaid Cards Processor

    A company that processes transactions for prepaid payment cards. ...
  4. Terms And Conditions (Credit Card)

    A formal statement of the rules and guidelines that govern the ...
  5. Bank Card

    A bank card, also known as a physical card, is used to gain access ...
  6. Linked Transfer Account

    A linked transfer account is when accounts held by an individual ...
Related Articles
  1. Tech

    The 4 Best Alternatives to PayPal (PYPL, GOOG)

    Read about four popular alternatives to PayPal, and learn why the online payments industry is too big for one firm to dominate completely.
  2. Tech

    Bitcoin Transactions Vs. Credit Card Transactions

    We provide an overview of the differences between bitcoin and credit card transactions, and the advantages of using one over the other.
  3. Personal Finance

    How Credit Card Balance Transfers Work

    The pros and cons of credit card balance transfers.
  4. Personal Finance

    8 Low-Cost Ways To Transfer Money

    If cost is your primary concern, there are several cheap(er) ways to move funds.
  5. Personal Finance

    How to Transfer Credit Card Balances to a New Card

    Before you read that new credit card's zero percent interest balance transfer offer, see our guide to help save money and pay down your existing debt.
  6. Personal Finance

    Cut Your Bank Fees

    Find out how to get the bank to pay you for using their services, not the other way around.
  7. IPF - Banking

    How To Find The Right Prepaid Debit Card

    Prepaid debit cards are becoming increasingly popular. Here are some tips for choosing the right prepaid debit card.
  8. Personal Finance

    Forget Your Bank Account - Use Your Credit Card

    What if you used your credit card as a bank account? Believe it or not, this strange strategy could actually work.
  9. Tech

    A Look At The Most Popular Bitcoin Exchanges

    The Bitcoin exchanges today claim to have learned from Mt. Gox and present themselves as advanced models with better security mechanisms in place.
  10. Tech

    Are There Taxes On Bitcoins?

    Here is a short guide to the tax implications when using or investing in bitcoins in the US.
RELATED FAQS
  1. What are the advantages of paying with Bitcoin?

    Learn how payments made with Bitcoins offer certain advantages over standard currency, including user anonymity, no taxation ... Read Answer >>
Hot Definitions
  1. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  2. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  3. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  4. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  5. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  6. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
Trading Center