Payment-processing merchant severs ties with would-be Mac-cloner Psystar

“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.

36 Comments

  1. One big scam if you ask me. To many address changes, no detailed info on there product. Merchants dropping there support, and no one in the area even knows who they are. You people are in for a BIG disappointment! $400.00 wasted on a cheap PC box with no firewire, no iLife software, no keyboard, no mouse. Unsupported hardware which Apple stores will not support at the Genius Bar so you have no technical support what so ever.

    This to me is no deal at all. Just a lot of trouble period.

  2. @Spark
    “Having a pay processor like Powerpay is like having an Escrow company. Psystar would not obtain any of the customer’s credit card info. Companies use pay processors to shield themselves from the liability of having credit card info. Psystar is up to something that won’t go far, but scamming credit card info isn’t one of them.”

    You do not know what you are talking about! with a pay processor, you have access to all the credit card info, you can go into your account, refund charges, charge more ect. that is why they want to know they are working with a reputable company, and have the assets to do business.

    You re correct if you are talking about someone like PayPal, who any one can get an account to collect CC chargers

  3. At reality check and others who feel entitled to use Apple software without paying for it:
    There is plenty of competition out there for your computing buck.
    No one demands you use Apple products-go buy a Sony, HP, Dell, Acer, Asus, BenQ, etc. Install any flavor of windows, Linux, BSD you want on it.
    Just because you want Apple products without paying for them, doesn’t entitle you to have them.

    I may feel entitled to drive a Mercedes, but It’s not ok for me to go take one from a dealership and leave them $400 because I do not feel like paying the $40k+ they want.

  4. 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

    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.

    Um, does anyone see a pattern here?

  5. nekogami13, While what you say is true – $400 vs $40 – I’ve paid that $40 several times for each of my more recent Macs. Even so, just because the total is 1/10th the amount, it’s still the same profit ratio. Hmm … maybe more? I buy the Family Packs. Same “product”, but distributed to up to five different computers (usually just four). It costs Apple about the same to create it but they market it for so much more.

  6. Why do these guys even want to sell hardware? Their value is in the booting code which they could be licensing to DELL, et al for $10 a machine and make a fortune without having to lift a finger.

    If this code is real and works, the ramifications are enormous for the non-western world where wages are low and the cost of Apple computers and support is exorbitant. PCs will pop-up everywhere with a choice of MacOS.

    To combat this Apple needs to drop the cost of the Mac Mini in half, it’s size in half, make the DVD drive a USB external option, keep it limited in graphics/RAM/drive and make it an impulse purchase.

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