“The payment-processing merchant for Mac clone maker Psystar abruptly ended its relationship with the company Wednesday after it discovered what was for sale on Psystar’s site,” Tom Krazit reports for CNET.

“Powerpay had been the payment processor for Psystar’s online store until Wednesday, when it yanked its services from Psystar’s Web site. That move sent the store offline for several hours midday Wednesday, halting sales of Psystar’s Open Computer, which comes preinstalled with Mac OS X Leopard in violation of Apple’s licensing agreement for its operating system,” Krazit reports.

“Psystar posted a statement on its Web site Thursday explaining the downtime. ‘Midday yesterday our store was not receiving any orders. This was due to the fact that our merchant gateway, Powerpay, dropped the ball on us and refused to process any more transactions from our company,'” Krazit reports.

“Louisa Deluca, vice president of loss prevention for Powerpay, said on Thursday that her company dropped Psystar because it violated the terms of its agreement with Powerpay. She declined to cite specific violations, but said ‘there are plenty of reasons why we shut the account off. We did not know that’s what he was selling, we learned that yesterday,'” Krazit reports.

“Psystar has since switched merchant services providers to PayPal, who processed my transaction with the company on Wednesday,” Krazit reports.

Full article here.

MacDailyNews Take: Anyone who buys something from that outfit risks making Steve Ballmer look sane.