One of our blog advertisers asked if they could pay via MoneyBookers. I had heard about MoneyBookers on Digital Point in the past, but I never had a need for an account. He assured me that it was legit, and the fees were considerably less than with Paypal. After some quick due dilligence, I signed up for an account. The advertiser paid me shortly thereafter.

Here’s where my nightmare began. In order to withdraw my money, I had to verify my account. The simplest way seemed to be via text message. I put in my information, and I was texted a verification code that I entered on their site. Done.

Or not. When I tried to withdraw the money as a paper check (I didn’t want to give out my bank information), it said I needed my address verified, by regular mail. WTF? So a few days go by, and I get a letter in the mail with a verification code. Log into MoneyBookers, enter the code, and now my address is verified!

Now I initiate the withdrawl, print out my confirmation, and start the waiting game. (They say checks could take 8-10 business days to be delivered, even though I got my address verification letter in 2 days!) But the following morning, I receive an e-mail that says:

For Security reasons we have stopped your withdrawal transaction with the following details:

And would like to ask for an explanation about the reason you are receiving funds from user XXXXX.com Please also provide us copies of following documents:
- personal identification document with picture (identity card or driving license or international passport)
- a proof of the address submitted with our system (bank account statement or utility bill)

You can send those scanned to our email address XXXXXX@moneybookers.com or faxed to +XX XXX XXX XXXX.

As soon as we have your feedback and verified your identity your moneybookers account will be operational again and you will be able to request your withdrawal. Please excuse us for any inconvenience caused.

Now I’m getting pissed. I’ve already wasted 4-5 days jumping through hoops, and now they halted my withdrawl because of some random “security” check? I decide to comply, because I’m anxious to get my money. A day goes by, and there’s no response whatsoever. The following day, I get another form letter that’s basically asking for the same information all over again.

This time, I fire off an e-mail expressing my frustration, and resent them the information they requested for a second time. Another day goes by without any response from them – But when I checked my account history this morning, it appears they have finally processed my request.

When I first signed up for MB, I was really impressed with their setup, and thought that they could pose a real threat to PayPal in the US. But after this whole ordeal, I’ll NEVER use MB again. When I had a Paypal issue in the past, I picked up the phone, got someone on the phone within 60 seconds, and had a resolution in a matter of minutes. As much as people like to bash PayPal, I’ve been using them for 10 years now (even back when they were x.com), and I’ve never had an issue with them.

Consider yourself warned..

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