Skill, formerly known as Moneybookers, is a popular digital payment system that operates in over 200 countries and supports over 40 currencies. It was launched in 2001 and has since become a popular alternative to traditional payment methods such as credit cards and bank transfers. Skill allows users to send and receive money online, pay for goods and services, and even fund their trading accounts with online brokers. However, in recent years, Skill has stopped allowing forex payments, leaving many traders wondering why.
Forex, or foreign exchange trading, is a popular form of investing in the financial markets. It involves buying and selling currencies in order to make a profit from the fluctuations in their exchange rates. Forex trading has become increasingly popular in recent years, with more and more people looking to take advantage of the opportunities it offers. However, due to the risky nature of forex trading, some payment systems have become hesitant to facilitate transactions related to it.
Skill was one of the payment systems that used to allow forex payments. But in 2018, it announced that it would no longer allow forex payments through its platform. The decision came as a surprise to many traders, who relied on Skill to fund their trading accounts. So, why did Skill stop allowing forex payments? There are several reasons:
1. Regulatory compliance
One of the main reasons why Skill stopped allowing forex payments is regulatory compliance. Skill is a regulated financial institution and is subject to strict anti-money laundering (AML) and know your customer (KYC) regulations. These regulations require Skill to verify the identity of its users and monitor their transactions for any suspicious activity. With forex trading, there is a higher risk of money laundering and other financial crimes. Therefore, Skill may have decided that it was too risky to continue facilitating forex payments.
2. Chargebacks and fraud
Another reason why Skill may have stopped allowing forex payments is chargebacks and fraud. Forex trading involves high-risk investments, and some traders may lose money and then try to dispute the transaction with Skill. This can lead to chargebacks, which can be costly for Skill to process. In addition, forex trading is also vulnerable to fraud, as some traders may use stolen credit cards or engage in other fraudulent activities. Skill may have decided that the risks of chargebacks and fraud were too high to continue facilitating forex payments.
3. Reputation risk
Lastly, Skill may have stopped allowing forex payments to protect its reputation. Skill is a trusted payment system that has built a strong reputation over the years. Allowing forex payments could potentially damage its reputation if traders were to lose money or engage in fraudulent activities. By stopping forex payments, Skill may be protecting its reputation and ensuring that it remains a trusted and reliable payment system.
In conclusion, Skill’s decision to stop allowing forex payments is likely due to a combination of regulatory compliance, chargebacks and fraud, and reputation risk. While this may be disappointing for traders who relied on Skill to fund their trading accounts, it is important to remember that Skill is a regulated financial institution that must comply with strict regulations to ensure the safety and security of its users. Traders who wish to continue using Skill can still use it for other purposes, such as paying for goods and services or sending money to friends and family.
