Safeguarding of Funds
Ecommpay Limited is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017 (firm reference number 607597) as an authorised payments institution to provide payment services. As a payments institution, Ecommpay must protect funds received for merchants and keep them safe and separate from our own funds – this is known as safeguarding. This page gives important information on how we achieve this.
How Ecommpay Safeguards Funds for Merchants
Ecommpay is committed to safeguarding the funds of our merchants in accordance with the Payment Services Regulations 2017. We do this by using the segregation method, which means that we hold merchant funds separately from our own funds. This segregation can be achieved by holding funds in a credit institution, such as an authorised bank or through placing funds in investment assets.
Holding Funds in a Credit Institution
When we hold merchant funds in a credit institution, like a bank. We do so in a specially designated safeguarding account. This means that the funds are held ring-fenced and protected for the benefit of the merchant and are not accessible to Ecommpay for its own operational funds. The credit institution is also subject to strict regulations, which further protects the funds of our merchants.
Investment Assets
In addition to holding funds in a credit institution, we may also invest certain merchant funds in investment assets. These assets are carefully selected to ensure that they meet legal requirements, and that they are low risk and liquid. The investment assets are held in special account with an FCA authorised custodian, which means that they are not accessible to Ecommpay, or any investment advisor Ecommpay may appoint, for its own operational funds.
Protection
Ecommpay Limited is not a credit institution, and we are not subject to protection granted under the Financial Services Compensation Scheme (FSCS) in the UK. However, all merchant funds are held in specially designated safeguarding accounts so at all times those funds remain protected.
Your Rights
As a merchant, you have the right to request information about how your funds are being safeguarded. If you have any questions about our approach and the protection of your funds, please contact your designated Ecommpay Account Manager.
