lucy banks
A Perth business owner has publicly criticized the online financial service Wise after her business account was blocked from receiving funds for several days. Lucy Banks, 34, had opened the account to manage finances for the upcoming Adult Industry Choice Awards in November, an event recognized as the largest in Australia’s adult industry.
Wise, a financial company known for facilitating international money transfers through various currencies, operates exclusively online. As a working mother of three, Banks chose Wise to avoid the inconvenience of setting up a business account at a traditional bank. She linked her Wise card to Apple Pay and used the account for all business transactions until an unexpected block occurred this week.
On Tuesday, October 14, Banks discovered she was unable to receive payments. Initially assuming a technical issue on Wise’s end, she contacted their support through the app’s live chat. She was informed that her account activity might have breached Wise’s card processing agreement, resulting in a block on receiving card payments.
Impact on Business Operations
The account restrictions significantly disrupted Banks’ operations, particularly affecting her ability to secure sponsorships for the awards. “It is so wild and frustrating because I’m not doing anything illegal and everything is above board,” Banks expressed, emphasizing the distress caused by the limitations.
Banks suspects that her association with the adult entertainment industry and a recent sponsorship payment from a strip club may have triggered the account block. Although she previously worked in the OnlyFans sector, she has since transitioned to a marketing and PR role within the industry.
“It is just really frustrating and it felt like discrimination,” she told news.com.au. “I am five weeks out from an event and I went with Wise in the first place because it was online and really easy for me. I don’t have time to go into a bank and cross my fingers that (account limitations) do not happen again.”
Wise’s Response and Resolution
Following media coverage of Banks’ situation, Wise restored access to her account on Thursday, October 16. In a statement to media outlets, Wise explained, “As a regulated financial institution in Australia and around the world, our dedicated teams must conduct necessary due diligence reviews of account activity.”
“When this happens, we communicate directly with account holders via their registered email addresses, explaining the situation and what information or steps are needed to conclude the review. Unfortunately, this appears to be a situation where our communications were overlooked, leading to an extended delay in resolving the feature’s availability.”
Banks, however, insists she never received any email communication from Wise, even after checking her spam folder. Despite the account’s restoration, she felt alienated by the institution and decided to withdraw all her funds.
Broader Implications for the Industry
Banks’ experience highlights ongoing challenges faced by those in the adult industry when dealing with financial institutions. “My business is not directly to do with sex work, why are they able to say they are going to freeze your account just because they don’t like you?” she questioned.
She pointed out the lack of financial institutions openly accepting sex workers, stating, “There’s no official institution that says ‘we accept sex workers’, there is none – we all run the risk of having our accounts shut down.”
“Imagine if banks were like, ‘We are no longer servicing hairdressers’ – people would be up in arms! Sex work is the most reliable industry in the world, I would argue, and yet the finance industry keeps saying it is risky. That is discriminatory.”
This incident underscores the broader issue of financial discrimination faced by individuals associated with the adult industry, sparking a conversation about the need for more inclusive banking practices.
As Banks moves forward, she remains determined to find a financial service that aligns with her business needs without the risk of sudden account restrictions. The incident serves as a reminder of the ongoing challenges and the necessity for change within the financial sector.
