Paychex, Brings Payments Back Inhouse — DomainSponsor Dumps

Domain name parking firm hits payment glitches with outsourced provider.

Just a few months following outsourcing its publishers’ payments through Paychex, domain parking firm DomainSponsor has brought its payments back in house.

DomainSponsor had some glitches with the transition to Paychex. Some publishers received their past two payments made out to their contact person rather than the firm name. This was only a problem if the contact was an employee of a larger firm; otherwise it just required two check endorsements for banks to cash the payments correctly. The other problem is if the 1099 record keeping is off, which would mean the contact’s information is sent to the IRS at the end of the year. DomainSponsor ought to be able to adjust accordingly for tax purposes and this shouldn’t be a problem.

ACH payments will also be affected. Clients who moved to ACH will now receive payments as bank wires.

DomainSponsor disclosed the change on its web site:

Moving away from Paychex

As you by now know, we migrated to the Paychex system a few months back to handle publisher payouts. We experienced some issues, as a result of which we have decided to bring the payment process back in house.

In interim, we will switch publishers that were transitioned to Direct Deposit (ACH) method back to ‘Wire’; and the minimum payment threshold will continue to be maintained at $1000.

We would like to continue to offer the benefits of Direct Deposit to our US Publishers (like lower minimum payment thresholds and lower/no transaction fees); and are actively looking for the correct solution of offering ACH.

We apologize for any inconvenience that this may have caused.

Thanks, DSSupport