The Luxembourg Financial Sector Supervisory Commission (CSSF) suspended the outfit’s electronic payments license on 25 July.

The regulator said on 27 September that Cyberservices Europe had run afoul of rules “aimed at protecting payment services users”. Specifically the company did not deposit customers’ funds in a dedicated bank account or take out insurance coverage, as required by Luxembourg’s payment services law.

The CSSF said it previously told Cyberservices Europe to deposit the funds in a separate bank account, but the firm “did not correct the situation that was noted. Consequently, the CSSF had to take the decision to temporarily suspend the provision of payment services by the payment institution Cyberservices Europe SA”.

The suspension will remain in effect, in Luxembourg and across the EU, until the company deposits the required amounts into segregated bank accounts, the CSSF stated.

Klik & Pay is a payment system for smaller e-commerce sites that lets customers pay online using Visa, Mastercard, American Express, Alipay, WeChat, wire transfers and other payment methods. In addition to Luxembourg, the company operates payment services in France, Germany, Mauritius, Switzerland and the US.

Customer claims

The CSSF reported that customers had been told to contact the financial regulator in order to release or unfreeze their funds. But the CSSF stated “it does not have such powers vis-à-vis individual creditors of Cyberservices Europe SA and cannot make any refund.”

“A payment institution is, unlike a bank, not covered by a system that guarantees the reimbursement of sums due,” the CSSF observed.

Nevertheless, customers with outstanding claims can lodge a formal complaint with the CSSF by sending the amount pending and supporting documents to [email protected].

Delano has requested comment from the company.