I didn't use my Payza account for almost 3 years now, I just decided to use my money today.
I don't remember I received or acknowledged any notification about ceasing this service so far.
Any ways, money stays money, and it always belongs to its owner, even if they decided to cease the prepaid card service, they should at least provide a way to allow the fund owners to recover their money.
So for me, if they don't any recovery tool, this be a confirmed scam.
You shouldn't have left money in Payza or any online/offline bank for so long and if you dint want to use the account, you should have loaded money in your account. By losing the debit card, you've lost your cash as well and I feel sorry for you. I have also lost my bank money as I did not use my account for just 1.5 years and now they freezed my account. There was barely $10 but still it was an ICICI salary bank account which was useful to me while the bank balance is zero as they kept cutting the cash every time. I cannot call them cheats as well.