Making Things Right: Our Commitment to Fully Refund All Users Affected by Legacy Card Provider Issues

The Situation

Over the past several months, the SolCard team has been working tirelessly to address a significant challenge facing many of our users. As many of you are aware, numerous cardholders experienced issues with our legacy card provider, resulting in funds becoming inaccessible and refunds not being processed to card balances.

This situation has been deeply frustrating for all parties involved, especially for the more than 200 users who have had their funds—totaling $54,675.50 USD—effectively stuck in limbo. We recognize the considerable inconvenience and stress this has caused, and we want you to know that we've heard your concerns loud and clear.

Our Initial Approach

From the moment these issues came to light, SolCard's primary objective has been to secure a rapid resolution and ensure that every affected user receives their funds as quickly as possible. Our team initiated multiple rounds of negotiations with our legacy provider, seeking to advance these funds immediately while pursuing a long-term solution.

We approached these negotiations with optimism and good faith, believing that our provider would recognize the urgency of the situation and work collaboratively toward a resolution that prioritized our users' interests. Unfortunately, despite our persistent efforts, these negotiations did not yield the prompt resolution our users deserve.

Taking Decisive Action

After careful consideration of all available options, we've made a significant decision: SolCard will fully refund every affected user within the next 15 days, with payments coming directly from our own fees.

As of writing this, approximately 44%, or $24057.22 USD, of these refunds have already been processed. If you haven't yet contacted support about your refund, please do to make sure your refund gets processed.

This means we will temporarily redirect revenue from our revenue sharing distributions to ensure that all affected users receive complete reimbursement for their stuck funds. While this represents a substantial financial commitment on our part, we believe it's the right thing to do for our community.

What does this mean for $SOLC holders?

As a $SOLC holder and RevShare beneficiary, you're likely wondering about the impact on your weekly distributions. While we can't predict the exact timeline with certainty, we've analyzed our historical data to provide realistic estimates.

Based on simple calculations using different retrospective daily averages of RevShare collections, we project the refund process will take approximately 19-25 days to complete. The conservative estimate suggests about 25 days, while our more optimistic projection indicates around 19 days.

For transparency, we've created a spreadsheet showing the past 60 days of RevShare data in USD terms, along with our basic scenario analysis. You can review this data here: https://docs.google.com/spreadsheets/d/1d8BezXLpVEFhnUX4d13-WEtPguyeEMqhqnFjtwRMbD4/edit?usp=sharing

Regular RevShare distributions will resume in full once the process is complete. We appreciate your understanding as we prioritize making our affected users whole.

Looking Forward

While this isn't the resolution pathway we initially hoped for, we're grateful to be in a position where we can make our users whole in a financially sustainable manner. This experience has reinforced our commitment to building trust with our community and has informed several important changes to our operations:

1. We've implemented more rigorous vetting processes for our third-party card service providers.
2. We're expanding our customer support team to ensure more responsive assistance during critical situations.

Throughout this challenging period, we've been deeply moved by the patience and understanding demonstrated by our community. Your trust in SolCard means everything to us, and we're committed to continuing to earn that trust every day through our actions.

Thank you for being part of the SolCard community. We're excited to put this challenge behind us and focus on building the crypto products you deserve.

With love,

Andrew, founder of SolCard.