Important Update: Parallax's Path Forward

Written by
Mika Reyes
Published on
January 26, 2024
Important Update: Parallax's Path Forward

Dear Parallax Community,

Due to changes beyond our control, we received sudden news that Cross River bank is terminating accounts with our partner Fortress effective January 31, which will have immediate impact on how we operate:

  • Effective January 31, you will still be able to login to Parallax but you will no longer be able to receive deposits into your Cross River accounts.
  • Confirmed cutoff time for pausing deposits and withdrawals: 
  • 11:59 PM Jan 31 UTC
  • 6:59 PM Jan 31, EST (Eastern time, NYC)
  • 7:59 AM Feb 1, Philippine time
  • 8:59 PM Jan 31, Argentina time

  • There will be a temporary period (dates below) when you cannot receive any deposits. Please update your platforms and/or clients. 
  • The silver lining: The team is working around the clock to accelerate our efforts with a new, faster, and more reliable payments provider to get new account details and deposits back online ASAP & unlock more benefits for our users.

Our #1 priority: protecting and transitioning our existing active users as smoothly as we can help it. We understand how disruptive this is, and we're here to help you through this shift.

More details below. User action is required. Please read the rest of the announcement thoroughly.

*FAQs are included at the bottom of this page.

Timeline

  • January 26-31: Withdraw your funds. All open bank accounts will be closed on January 31. Do not process anymore ACH or wire deposits.
  • January 29: We will host 2 Town Halls, to share more information about the situation, please check Slack for the links to join.
  • February 1-7: Our team's all hands on deck, accelerating efforts to our new partner and infrastructure to get things back to normal.
  • Account details and the ability to deposit funds will not be available at this time.
  • In the interim, we suggest using services like Payoneer or Paypal
  • February 8 (target date): For existing active users (made a transaction in the last 30 days), you will have brand new account details, with a stronger payments provider. Please note this is our best estimate; the actual rollout could be slightly ahead or behind by a day or two. Additionally, rollout may be implemented in batches to ensure stability. We'll keep everyone posted on Slack.

Immediate Actions for Our Users

  • For All Users: Withdraw your funds from Parallax. Your old account details will not be functional effective January 31.
  • For Active Users: If you were active and made a transaction in the last 30 days, we're sorting out new account details for you. Hang tight, and you'll be back to using Parallax after February 8. 
  • If you haven't been active, we won't be providing new details yet. 
  • Waitlist: We're hitting pause on new sign-ups for now, but we've got a waitlist going. Our priority is getting existing active users set up asap. 

Stay Updated

  • This Blog Post is the source of truth: We will update this blog post with all relevant information, FAQs, any timeline updates, etc. 
  • Real-time updates on Slack: We’re providing real time updates in our Slack community. Head over to your dashboard and hit “Join our community” to stay in the loop—or click here.

Our Commitment to a Stronger Future

There’s a silver lining. Prior to this news, we’d already been integrating with new partners as part of our roadmap, who we’re confident will bring more reliable and efficient services, making this whole transition worth it. This is why, despite the sudden news, our team is able to transition so quickly.

We’re gearing up for a massive upgrade called Thunder ⚡️coming soon. 

This means more solid infrastructure, more secure accounts, quicker and more reliable transfers, and soon, new features like P2P sends, clients sending instantly from Parallax, card deposits, EUR account details, a smoother onboarding experience, a wider selection of ID options for KYC and more.

A Little Something for You

We know updating account details is disruptive.

To show how much we appreciate your patience, we're giving all active, transitioned users reduced transaction fees for a limited time period. More updates on these reduced fees soon.

What's Next

Change is tough, but it's also a chance for growth. We're committed to coming out of this stronger and better. Your support and patience are what keep us going :)

Thanks for being part of our community and sticking with us. We’re working around the clock to get everything back, business as usual ASAP.

Questions or concerns? The best way to contact us is through Slack. Head over to your dashboard and hit “Join our community” to stay in the loop—or click here

Warm regards,

The Parallax Team

FAQs

Q: How will Parallax communicate updates and important information during the transition?

A: We encourage all our users to join our Slack community for real-time updates and information. It's also a great place to communicate with our support staff if you need assistance.

Q: What happens to funds that are scheduled to arrive BEFORE Jan 31?

A: Funds scheduled to arrive before January 31 will be credited to your Parallax account as usual. Please ensure you withdraw these funds promptly.

Q: What happens to the funds if they arrive ON or AFTER Jan 31?

A: Any funds arriving on or after January 31 will unfortunately be returned to the sender. This may take up to 5 US working days after arriving to our system. We advise coordinating with your senders to avoid transactions during this period.

Q: Can I still deposit funds starting Jan 29, Monday?

A: We DO NOT recommend this, because we cannot guarantee that the funds will arrive by Jan 31.

Q: Can the timeline be extended? This feels very sudden.

A: We understand. This was extremely short notice for us, too. As soon as we knew, we wanted to relay the information immediately even as we are still figuring things out, to do right by our customers.

We are continuing to negotiate with our partners to push out ALL timelines.

For more insights into the situation and our discussions with our partners, we invite you to join our upcoming Town Hall meeting. (More details in our Slack community)

Q: I maxed out my withdrawal limit for the month and I can’t withdraw. What happens to my balance?

A: Don’t worry :) We will increase the limits. Our team is working on a fix to temporarily disable the limits until Jan 31. Our #1 priority is to protect your funds and our active users!

Q: Do I get new account details on February 8 if I receive my first payment before January 31st?

A: No, unfortunately not. Only active users who have made transactions in the past 30 days as of Jan 27 will receive new account details on February 8.

Given the extensive infrastructure changes we're implementing, we're currently unable to create new accounts during this period. We recommend joining the waitlist to be among the first to receive updates and access once we resume operations.

Q: What are my alternatives for receiving payments during the downtime?

A: During this transition period, we recommend using PayPal, Payoneer or Takenos (AR) as alternative platforms for your payment needs.

Q: Will there be any changes to the fees or rates with the new system?

A: We anticipate that our fees and rates will remain consistent once we resume normal operations. As a gesture of our appreciation and to say sorry for the inconvenience, active users from the last 30 days will enjoy reduced fees for a week. :) More info soon.

Q: What steps are being taken to ensure a smooth transition for users?

A: Our development team is working round the clock on building new infrastructure to support this transition, as outlined in our timeline. Our priority is minimizing disruption and ensuring a seamless experience for our users.

Q: Will there be any new features or improvements after the transition?

A: Absolutely! We're excited about Thunder, our upcoming major update that will enhance reliability and speed by building our own payment infrastructure. This will reduce our reliance on external partners and, down the line, enable features like peer-to-peer sending and credit/debit card deposits. Stay tuned for Thunder's release before mid-2024!

Q: After I migrate to the new system, can I receive payments from any source?

A: To ensure security and compliance, you'll be able to receive payments only from the sources you've had approved during our verification process. This means if you've confirmed that you'll be receiving payments from your own accounts, or directly from employers or clients, those are the sources we've green-lit for transactions in your Parallax account. Please contact support if you need new payment sources approved.

Q: Will there be any changes to the types of transactions that Parallax can process during the transition to Bridge?

A: Yes, as we transition to our new partner Bridge, we're adopting stricter transaction source approvals to enhance security and compliance. This means we'll primarily support transactions from verified sources such as Gusto, Deel, Stripe, Upwork, and direct first-party payments. We're actively working to expand this list, but please note that third-party payments without a direct business relationship may not be supported during this transition. We appreciate your understanding as we strive to provide a safer and more reliable platform.

Q: Why do I need to verify my personal information again?

A: As we transition to our new partner, Bridge, we're embracing their robust compliance measures to ensure the highest level of security and trust for our community. This means we need to align with their verification processes, even if you've previously verified with us.

We see this as a positive step forward, enhancing the safety and reliability of your transactions on Parallax. It's all part of our commitment to providing you with a seamless, secure service that meets the highest industry standards.

Q: Why does Parallax only support one currency destination for the meantime?

A: Currently, we're working closely with our new partner, Bridge, to bring you a more streamlined and efficient payment experience. Due to the way Bridge's system is set up, each user account can be linked to only one currency destination at this time. This means that, for now, you'll need to choose a single currency for all your withdrawals.

Ready to get started?

Join the waitlist