The Free Software Foundation Europe (FSFE) has reported that its payment processing relationship with Nexi Group has been abruptly terminated, cutting off access to approximately 450 donors. This decision stems from a disagreement over a request for sensitive user data.
Details of the Dispute
According to FSFE, Nexi had requested access to what the charity interpreted as usernames and passwords of its supporters. The organization refused this request, seeking clarification on the necessity and legality of such data. FSFE described the responses from Nexi as vague, citing a general need for risk analysis.
Cancellation of Services
On March 10, FSFE learned that its contract with Nexi had been cancelled on March 7 due to an alleged failure to meet a deadline for the data request, which FSFE claims was never communicated. The termination has left the charity unable to process credit card donations, affecting over 450 supporters who utilize automatic renewals.
Nexi’s Position
A spokesperson from Nexi clarified that the request for user data was part of compliance with Know-Your-Customer (KYC) regulations mandated by the German financial regulator BaFin. They asserted that the request was misinterpreted, emphasizing that Nexi only sought test login details to ensure users could cancel subscriptions effectively, thereby preventing subscription traps.
Future Steps for FSFE
In light of the cancellation, FSFE is in the process of transitioning to a new payment provider. However, they noted that existing supporter accounts cannot be migrated automatically, complicating the situation for their donor base.
This incident highlights the complexities and potential risks associated with compliance requirements in the payment processing industry, particularly for non-profit organizations reliant on donor contributions.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
