top of page

How Intercash Overcame the Railsr Debacle


October 20, 2023 - In the fast-paced world of global payment solutions, unforeseen challenges can sometimes test the mettle of even the most robust and established businesses. Intercash, a leader in payment and card issuing solutions for businesses around the world, recently found itself in the midst of a turbulent storm and we wanted to share our journey with you. In the face of adversity, we've emerged stronger, more resilient and more committed to serving our valued clients.


The Railsr Debacle: A Regulatory Nightmare

Our journey begins with an issue that was not of our own making but one that profoundly impacted us and many other industry players that relied on Railsr for BIN Sponsorship and Banking-as-a-service. One of our partner issuing banks, Railsr, became embroiled in a regulatory investigation by the financial authorities in Lithuania. The investigation uncovered compliance issues and deficiencies in their compliance regime that raised red flags. As a result, Railsr had all its issuing abilities frozen across all their EU business units and clients.


This crisis meant that many of Intercash's clients and cardholders were left unable to use their cards, causing widespread disruptions. The critical point to emphasize here is that Intercash was not responsible for the troubles that Railsr faced. The negligence of Railsr, a failed Electronic Money Institution (EMI), caused this predicament. It was an external issue that threatened to derail the industry, our clients' business operations, and financial well-being.


Collaboration and Patience: Key to Resilience

In times of crisis, collaboration and patience become invaluable assets. The Lithuanian financial authorities attempted to work with Railsr to rectify the compliance issues, but their attempts ultimately led to the revocation of Railsr' license. While Intercash was prepared to migrate our business to a new Issuing partner swiftly, Railsr’s inefficiencies and lack of organization caused further delays. Despite these hurdles, Intercash remained unwavering in our commitment to preserving our relationships with clients and ensuring the safety and security of their funds.


The monumental effort by Intercash, combined with the understanding and patience of our clients, proved instrumental in helping us navigate this potential disaster. Our dedicated team worked tirelessly to ensure we would find our way out of this challenging situation and emerge stronger on the other side.


A Beacon of Trust

After months of uncertainty and hard work, we are thrilled to announce that Intercash successfully transferred our BINs to a new issuing bank based in Belgium. This crucial step allowed us to get back on track and restore normalcy to our business and client’s business operations. Our new partnership reflects our commitment to providing our clients with secure and efficient global payment solutions.


We extend our heartfelt appreciation to our clients, who demonstrated patience, understanding and trust throughout this ordeal. Your unwavering support was pivotal in our journey to recovery. We are grateful for the trust you have placed in us and we remain committed to serving you with the highest standards of excellence.


Industry-Wide Impact

The Rails issue wasn't confined to Intercash alone; It had far-reaching implications across the payment industry, affecting many other businesses. The collaborative spirit and mutual support exhibited during this challenging period highlight the resilience and strength of our industry.


While the Rails regulatory investigation tested Intercash's mettle, it also showcased the strength of our team, operations, policies and the overall resilience of our industry. We emerged from this challenging period with a newfound determination to serve our clients and partners with even greater dedication and an unwavering commitment to excellence.


As we continue our journey, we look forward to writing more chapters of success and innovation, always with our clients' best interests at the forefront of our mission. Thank you for standing by us as we navigated these stormy seas, and we promise to continue providing you with the best global payment solutions in the industry.

Yorumlar


bottom of page