E-Clear
Encyclopedia
E-Clear is a British payment processing company
handling credit card transactions, presently under an administration order. It provides merchant account
s for companies, allowing them to accept credit card
s as a form of payment.
Formed in 2002 and based in Mayfair
, City of Westminster
, the company is based in Britain, but owned by a parent company registered in Cyprus
, and its chief executive Elias Elia is a Greek Cypriot. E-Clear specialises in the travel industry, and is one of the main four companies handling credit card transactions for airlines and travel agents in the UK.
In 2007, Deutsche Bank
announced the end of its agreement for card processing with E-Clear. As a result, E-Clear began buying shares in NordFinanz, a small loss-making bank in Bremen
. By 2009, E-Clear owned 97% of the shares in the bank, but after failure to provide sufficient evidence that Elia personally and E_Clear as a company were responsible persons, the Germany regulatory authority BaFin
decided that Elia should not exercise E-Clear's voting rights, and ordered a court appointed trustee
.
The company came to prominence in 2009, following the collapse of several of the companies for which it handled credit card payments. In July 2009, Slovakian budget airline SkyEurope
went into administration, claiming it was owed millions of pounds from the company. Administrators for SkyEurope later sued E-Clear for £13.1m of cash they claimed was held back by the company. Concerns over the financial health of E-Clear steadily increased, and in December 2009 it was implicated in the collapse of Scottish airline Flyglobespan
, amid claims that E-clear had refused to pass on £34m of credit card payments made to the company. Administrators PriceWaterhouseCoopers
and Scottish finance minister John Swinney
claimed that E-Clear's failure to pass on the money, which included £20m paid by passengers who had already flown, played a key role in the airline's failure. A few days later, Hertfordshire based Allbury Travel Group, one of E-Clear's major clients also failed and ceased trading. As of December 19, 2009, the company is six weeks behind its deadline to submit its financial accounts to Companies House
, making its financial position difficult to accurately assess.
On January 19, 2010, a High Court
judge granted an administration order following a request from PricewaterhouseCoopers (PWC), FlyGlobespan's administrators. PWC accused E-Clear of withholding £35m from the airline before its collapse in December, and stated after the administrator order was granted that it was now clear that the funds were "no longer there."
Court appointed administrators BDO on initial investigation found that the accounts were missing £100M owed to creditors. BaFin announced the compulsory sales of the share holding in NordFinanz, funds which would be returned to E-Clears administrator.
.
Payment processor
A payment processor is a company appointed by a merchant to handle credit card transactions for merchant banks. They are usually broken down into two types: front-end and back-end....
handling credit card transactions, presently under an administration order. It provides merchant account
Merchant account
A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of credit card and/or debit card transactions...
s for companies, allowing them to accept credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
s as a form of payment.
Formed in 2002 and based in Mayfair
Mayfair
Mayfair is an area of central London, within the City of Westminster.-History:Mayfair is named after the annual fortnight-long May Fair that took place on the site that is Shepherd Market today...
, City of Westminster
City of Westminster
The City of Westminster is a London borough occupying much of the central area of London, England, including most of the West End. It is located to the west of and adjoining the ancient City of London, directly to the east of the Royal Borough of Kensington and Chelsea, and its southern boundary...
, the company is based in Britain, but owned by a parent company registered in Cyprus
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...
, and its chief executive Elias Elia is a Greek Cypriot. E-Clear specialises in the travel industry, and is one of the main four companies handling credit card transactions for airlines and travel agents in the UK.
In 2007, Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
announced the end of its agreement for card processing with E-Clear. As a result, E-Clear began buying shares in NordFinanz, a small loss-making bank in Bremen
Bremen
The City Municipality of Bremen is a Hanseatic city in northwestern Germany. A commercial and industrial city with a major port on the river Weser, Bremen is part of the Bremen-Oldenburg metropolitan area . Bremen is the second most populous city in North Germany and tenth in Germany.Bremen is...
. By 2009, E-Clear owned 97% of the shares in the bank, but after failure to provide sufficient evidence that Elia personally and E_Clear as a company were responsible persons, the Germany regulatory authority BaFin
BaFin
The Federal Financial Supervisory Authority better known by its abbreviation BaFin is the financial regulatory authority for Germany. It is an independent federal institution with headquarters in Bonn and Frankfurt and falls under the supervision of the Federal Ministry of Finance...
decided that Elia should not exercise E-Clear's voting rights, and ordered a court appointed trustee
Trustee
Trustee is a legal term which, in its broadest sense, can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another...
.
The company came to prominence in 2009, following the collapse of several of the companies for which it handled credit card payments. In July 2009, Slovakian budget airline SkyEurope
SkyEurope
SkyEurope Airlines was a low-cost airline headquartered in Bratislava, with its main base at M. R. Štefánik Airport in Bratislava, Slovakia, and another base in Prague. The carrier filed for bankruptcy on 31 August 2009 and suspended all flights on 1 September 2009...
went into administration, claiming it was owed millions of pounds from the company. Administrators for SkyEurope later sued E-Clear for £13.1m of cash they claimed was held back by the company. Concerns over the financial health of E-Clear steadily increased, and in December 2009 it was implicated in the collapse of Scottish airline Flyglobespan
Flyglobespan
Flyglobespan was a British low-cost airline based in Edinburgh, Scotland. It formerly operated scheduled services from 5 airports across the UK and Ireland to destinations in Europe, North America, North Africa and South Africa. Its main bases were Glasgow International Airport, Edinburgh Airport...
, amid claims that E-clear had refused to pass on £34m of credit card payments made to the company. Administrators PriceWaterhouseCoopers
PricewaterhouseCoopers
PricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
and Scottish finance minister John Swinney
John Swinney
John Ramsey Swinney is the Cabinet Secretary for Finance, Employment and Sustainable Growth in the Scottish Government and the Scottish National Party Member of the Scottish Parliament for Perthshire North, having previously represented North Tayside...
claimed that E-Clear's failure to pass on the money, which included £20m paid by passengers who had already flown, played a key role in the airline's failure. A few days later, Hertfordshire based Allbury Travel Group, one of E-Clear's major clients also failed and ceased trading. As of December 19, 2009, the company is six weeks behind its deadline to submit its financial accounts to Companies House
Companies House
Companies House is the United Kingdom Registrar of Companies and is an Executive Agency of the United Kingdom Government Department for Business, Innovation and Skills . All forms of companies are incorporated and registered with Companies House and file specific details as required by the...
, making its financial position difficult to accurately assess.
On January 19, 2010, a High Court
High Court
The term High Court usually refers to the superior court of a country or state. In some countries, it is the highest court . In others, it is positioned lower in the hierarchy of courts The term High Court usually refers to the superior court (or supreme court) of a country or state. In some...
judge granted an administration order following a request from PricewaterhouseCoopers (PWC), FlyGlobespan's administrators. PWC accused E-Clear of withholding £35m from the airline before its collapse in December, and stated after the administrator order was granted that it was now clear that the funds were "no longer there."
Court appointed administrators BDO on initial investigation found that the accounts were missing £100M owed to creditors. BaFin announced the compulsory sales of the share holding in NordFinanz, funds which would be returned to E-Clears administrator.
Board Members
Members of the company's board include Elias Elia, Derek Tullett and Sir Edward du CannEdward du Cann
Sir Edward Dillon Lott du Cann is a retired politician from the United Kingdom. He was a Member of Parliament from 1956–87, and served as Chairman of the Conservative Party from 1965–67, and Chairman of party's 1922 Committee from 1972-84.Du Cann was educated at Colet Court, Woodbridge School and...
.