ISignthis (ISX ) confirmed its contract with Visa will be terminated and slammed market operator Australian Securities Exchange for requesting delicate details about its relationship with the card provider. The ASX investigation led to Visa suspending its processing for the fintech.
iSignthis stated in an email to its shareholders that its relationship with Visa will be terminated because of changes in the rules Visa is introducing later this year that would “restrict trade and competition”.
iSignthis said:
The company ceased processing as a principal acquiring member in mid-March and has been engaged since that time with Visa in commercial-in-confidence negotiations.
iSignthis will still be able to process transactions with Mastercard, Diners and China UnionPay but the company stated that Visa’s suspension has caused a decline in March and April revenue.
Visa’s websites shows iSignthis’ suspension was done by done by its anti-money laundering division. The fintech has rejected that it has processed unlicensed operators.
iSignthis added in its letter criticism of ASX and its quiry seeking sensitive details about its partnership with Visa.
iSignthis stated:
The company has advised ASX that it is inappropriate for it to be requesting and releasing information regarding current negotiations and submissions, as it may compromise our ability to reach outcomes of best effect for the company and its shareholders. ASX is insistent, so we have prepared circumspect answers to ASX’s queries for release to the market tomorrow. The directors are trying to do the “right thing” for both ASX and our shareholders, although there is some tension between the twin objectives.
Last month ASX released a damning report on the reasons for the prolonged suspension of trading in iSignthis shares, outlining alleged breaches of the listing rules.
The market operated commented at the time:
ASX remains of the view that ISX has committed a number of significant breaches of the listing rules and that ASX is obliged to refer those breaches to ASIC for consideration of enforcement action.
