Login with wrong password on Paymate.com

Today I created an account on paymate.com. They're a site that could be compared to PayPal, allowing you to receive and send payments online, difference is payments you receive go directly into your bank account instead of via PayPal.

So I create my paymate account, and noted that my password could only be eight (8) characters. After creating my account, I was sent to the front page where I could login. Entering my password, I decided to try entering a password that was longer than 8 characters but the first 8 characters matched my password.

I hit login, and bam, it worked. Now don't get me wrong, but doesn't that classify as entering the wrong password? And yet it still logged me in. I assume it only verifies the first 8 characters entered.

A little worrying don't you think? Or is it really an issue?