EUREKA, CA — Humboldt Merchant Services LP — a processor of merchant accounts, including those belonging to a number of so-called “high-risk” merchants in the adult entertainment industry — was carrying on “business as usual” Friday, according to a senior manager.Humboldt Senior Vice President and Sales Manager Hilda Tuel told YNOT the company and its clients have suffered no interruptions in service since the processor was caught in the July 25th collapse of its former sponsoring bank. Tuel, a 12-year employee who skipped part of her vacation to deal with the fallout after the Federal Deposit Insurance Corporation was named receiver for some of the assets of failed First National Bank of Nevada, said the FDIC has been pleasant, responsive and supportive not only of Humboldt, but also of its clients.
“We are committed to all of our merchants, and our high-risk merchants are a top priority,” she repeated Friday, adding that all 85 of Humboldt’s employees remain with the company and it hasn’t lost a single client in any of the categories it serves: retail, restaurant and high-risk merchants.
Tuel said she expects no disruptions in client services while Humboldt seeks a new sponsoring bank.
Humboldt was purchased by First National Bank of Nevada in May 2003, Tuel said. When the Nevada bank was declared insolvent and closed by the U.S. Office of the Comptroller of the Currency, its $3 billion in deposits were purchased by Mutual of Omaha Bank, a less-than-one-year-old subsidiary of 100-year-old insurance company Mutual of Omaha, but the other assets of the bank — including loans and the merchant-account processor Humboldt — have yet to be settled with other institutions.
Humboldt maintains a portfolio of more than 18,000 credit card merchant accounts, Tuel said Friday. She and other Humboldt representatives continue to assure their clients that processing services will not be disrupted.
“I would like to take this opportunity to assure you that our daily ongoing operations and management remain intact,” Humboldt President Ken Musante pledged in a statement published on the service provider’s website. “The Federal Deposit Insurance Corporation (FDIC) assumed majority interest in Humboldt Merchant Services to ensure our ongoing operations and continued growth.
“…[O]ur customers will continue to receive uninterrupted payment processing,” the statement continued. “Additionally, processing of funds have not and will not be impacted. Settlement and customer support will continue to operate as normal with no disruption in daily activities.”
