On Sunday, 61% of Greek voters said “no” to terms offered by European creditors to bail out their financially-crippled country, said CBC News. The victory was bitter though; the country must still figure out how to repay its 320 billion debt to Europe and raise another 60 billion for relief. The first step – preventing the collapse of the Greek banking system which is almost out of money.According to the CBC News article, Greek bank branches have closed, there are long lines at ATMs, and there are daily limits of 60 per person. Greece has already defaulted on one loan payment and has 12 days to come up with a 3.5 billion payment to the European Central Bank. If Greece defaults on that payment, financial experts said the ECB could cut off the flow of money to Greece, forcing the country out of the 19-country Eurozone.For now, the ECB said it would continue to make 89 billion in emergency loans to the banks to prevent them from running out of money for depositors. The New York Times reports that an emergency summit of leaders from the 19 Eurozone nations will be held Tuesday evening in Brussels to discuss the situation.What does this mean for subscription companies? In many cases, it means rejected payments for subscription services and online purchases. Greece has placed restrictions on the outflow of money, including the use of credit cards and global online payment services like PayPal. The country is trying to prevent a mass exodus of money to keep cash within the Greek economy.According to BuzzFeed, Greek users of Apple’s iTunes have had payments rejected and iPhone owners have been blocked from downloading apps or updating apps they’ve already paid for. In addition, last week PayPal announced that most of its services are not currently available in Greece, because PayPal relies on traditional banks and credit cards to transfer money.In a statement by a PayPal spokesman, the company said, “Due to the recent decisions of the Greek authorities on capital controls, funding of PayPal wallet from Greek bank accounts, as well as cross-border transactions, funded by any cards or bank accounts are currently not available. We aim to continue serving our valued customers in Greece in full, as we have for over a decade.”BuzzFeed also reports that subscription services behind a paywall, magazine and newspaper subscriptions, and cloud storage services like Dropbox and Apple’s iCloud are also not able to process credit card or PayPal payments from Greek customers.BuzzFeed says, “In almost every case, it is not that Greeks don’t have the funds to pay for online services. It’s just that no one who created these services foresaw a world where developed countries would have restrictions on the use of credit cards for foreign payments.”Insider Take:It is unfortunate that a national financial crisis in Greece is impacting simple transactions like monthly subscription payments, but it is unavoidable when a country’s entire financial structure collapses. Every aspect of a citizen’s financial life is impacted when a country’s bank runs out of money, and there is little subscription companies and global payment providers like PayPal can do but wait it out.As BuzzFeed points out, the problem is not with the individuals trying to make the payments. The problem is with the government restrictions, and regardless of the solution to the financial crisis, individual subscribers will eventually be able to make their payments, though maybe not in their current form if Greece leaves the Eurozone and chooses a different form of currency.Despite the doom and bloom, subscription companies with customers in Greece have an opportunity to shine here by continuing to provide their products and services to subscribers with the assumption they will eventually be paid. By rising to the challenge and helping their subscribers and members, companies can reap big, long-term dividends in terms of customer loyalty with compassionate customer service. It isn’t the subscribers who created this situation after all, and they shouldn’t be punished by a crumbling economy any more than is necessary. Subscription companies can help reduce their customers’ unease by being patient and helpful.We’ll provide updates as the situation unfolds.
