Psystar under fire from all sides over OS X deal

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Jun 26, 2007
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Powerpay, a company that specializes in online payment processing, told reporters on Thursday that it has removed Psystar from its client list after learning that the company was selling Mac OS X on its own brand of desktops.
Powerpay dropped Psystar on Wednesday after it discovered that the company had been violating its own terms of service, but a spokeswoman declined to comment on what violations occurred.
After losing Powerpay’s support, Psystar’s site was down on Wednesday before re-emerging with PayPal payment options later that night.
Did Powerpay ‘drop the ball’?
“Midday yesterday our store was not receiving any orders,” Psystar wrote in a statement posted on its site.* “This was due to the fact that our merchant gateway, Powerpay, dropped the ball on us and refused to process any more transactions from our company.”
Powerpay chose not to respond to Psystar’s statement, but did say that it was unhappy with its description of what really happened.* According to the company’s spokeswoman, Powerpay has “reasons” for why it stopped working with Psystar and the firm’s decision to sell Mac OS X on its own brand of desktops was a problem.
Not happy with Psystar
“There are plenty of reasons why we shut the account off,” Louisa Deluca told reporters.* “We did not know that's what he was selling; we learned that yesterday.”
Apple has yet to comment on Psystar’s operation, but as confidence in the smaller company continues to erode, it clearly needs to act quickly.