Digital River: A Major Merchant Payment Crisis Unfolds! 💸

News & Articles
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Summary:

  1. Payment Failures
    Digital River has stopped paying numerous merchants for software and digital products sold through its MyCommerce platform since midsummer.

  2. Merchant Frustration
    Lee Midgley, managing director of Traction Software, expressed feeling “rug pulled” after experiencing a complete halt in payments and lack of support for over three months.

  3. Continued Sales Without Payments
    Despite not making payments, Digital River continued to process sales from merchants’ customers until the merchants removed them from their order systems.

  4. Leadership Changes
    The company is reportedly under the leadership of new CEO Barry Kasoff, who has a history of managing companies in financial distress, raising concerns about potential liquidation.

  5. Cost-Cutting Measures
    Digital River has laid off a significant number of employees as part of cost reduction initiatives implemented since late 2022.

Read more at: The Register