Is Moneybookers a Safe Payment Processor?

Moneybookers Limited is an online payment system that is based in the United Kingdom. Operating much like its American competitor, PayPal, Moneybookers offers an alternative to paper checks and money orders by providing a service of money transfers over the Internet.

Started in 2001 and launched officially in 2002, Moneybookers has over 14 million clients and operates in all countries around the world. Moneybookers announced in the fall of 2010 its name change to Skrill. The United States company, Moneybookers USA, Inc. provides all of the financial services for American customers.

Moneybookers USA has been an official payment provider since 2009 in response to a lawsuit where eBay and PayPal were accused of breaking antitrust laws. While Moneybookers is less expensive with the fees than PayPal, they completely line up on other topics. For instance, Moneybookers also is allowed by policy to freeze any account if they feel there is reason to suspect fraud or if the client has violated the terms of service agreement. Fees can be imposed on clients for breaking the terms of service as well.

Security protection for sellers and buyers with Moneybookers is comparable to PayPal and works on eBay and other ecommerce sites with ease. Buyers can feel confident their information is safeguarded, but they do not typically mediate disputes between buyers and sellers. Credit card charge backs that are rampant on PayPal are very limited with Moneybookers.

Because Moneybookers does not get involved with disputes, they have additional layers of protection in the area of identity verification to lessen the chances of fraud and money laundering practices. The maximum amount that can transferred within a time span of three months is €50,000, or approximately $67,000 USD.

Moneybookers is registered and licensed in the United Kingdom and allowed to operate within the European Union. The Financial Services Authority of the United Kingdom is in charge of regulating Moneybookers.

Like PayPal, there have been many criticisms of Moneybookers security policies and there have even been claims of scams. Moneybookers had been collecting donations for the controversial website Wiki Leaks until summer of 2010 when they blocked all funding. They issued a statement claiming the reason for the account closing was to maintain compliance with the government authorities who were investigating money laundering. There was no court order requiring this action and Moneybookers further stated they had broken off business relations with Wiki Leaks due to blacklists and watch lists.

Many online forums can be found to post questions about Moneybookers and the likeliness of the company being a scam. Overall, it seems that Moneybookers is as reputable as PayPal or any other banking service. The problem is that there are scam artists and thieves all over the Internet and without diligence; you can potentially find yourself taken advantage of. There are lists of ways to keep you safe when conducting business online. Aside from the information you can find at the Moneybookers website, try looking over the tips at ecommerceandpoverty.info. As always, the first line of protection against identity theft and fraud is personal responsibility.