Paymate reviews and complaints

I, too, turned to Paymate after some bad dealings with the jerks at Paypal. Everything was fine until just the past few days. I got an email from them, stating they needed my physical address. Supplied it. Then someone tried paying online, and they were told we didn't have an account! I emailed them and got a reply today, October 11, 2010. Here's what I got:

Dear Valued Paymate Seller:
We understand that you’ve been awaiting funds for your recent activity using Paymate to process your transactions on eBay or your website. As you may know we moved to a new financial partner in September and the new bank required a review of all of our existing accounts. Unfortuneately, we were not able to get your account approved with the new financial partner allowing us to keep processing payments for. If you have transactions that were scheduled for settlement prior to September 17th those payments are being held by our previous bank after an annual review of your account and can be held by them for up to 6 months. Though we are working with them to get them to release the funds as soon as possible they may or may not comply with our requests for payment prior to the 6 month reserve hold they’ve placed on those funds. If you have attempted any transactions starting on September 17th those transactions were suspended, as they were processed through our new partner, so none of those transactions will process, and have either been returned to the buyer already or will be shortly. Going forward if you have provided us with tracking information, and we can confirm shipment, we will work with our previous bank to get those funds released as well, however, as stated above they may choose to hold the funds for up to 6 months on any transactions submitted prior to September 17, 2010.
We are also in the process of speaking a separate partner that may be able to have you approved in the next 2 weeks. If you are interested in this please let us know by writing an email to: [protected]@paymate.com with the Subject line: Account Declined. We will work this through the process and see if we can push you through an exception process. Thank you for the support and patience.

Thank you,

Paymate Client Service

NO reason for the cancellation. And just HOW can they hold your funds for up to 6 MONTHS, with the PREVIOUS bank, yet?!?!? This is basically what Paypal did to me, also.

So, who CAN you trust to handle your online business with?

Do not sign up with Paymate. I have been a member for 3 months now, with more than $500 in lingo somewhere... It has been 4 weeks since they sent me an email that said my funds were being transfered to my bank account as I had requested online. I have yet to receive any of my money. But, I did get two seperate emails asking me to sign and fax back so they could have my physical signature on file. Through all of this, I have called them four times (they have NO live operaters. You only have the option to leave a voicemail message), and emailed them countless times. I have gotten no response on anything I have tried. I am not sure where to go from here exept to start by warning others to stay away from this service. And shame on Ebay for suggesting them.

I'm another Paymate customer that hasn't been paid as promised by them.

I filed a small claims court action against them. Since they have a Ca. address I can sue them in the county I live in. I sued Paymate for the money they never paid me, plus I am asking for damages due to lost sales since they stopped processing customer payments without any warning.

Anyone that has been ripped off by them can do the same thing. There are supposed to have an address for service in each state that they do business in.