FMPay | Merchants Website Requirements

How client funds are safeguarded

Now you have successfully integrated your website with our payment platform and started accepting transactions on your web-site, we are sure you will have one question: “Would my funds be safe if FMPay were to be in any kind of financial trouble or even became insolvent?” We can assure you that your funds are very safe with us. They are protected from the claims of other creditors because there are precise legal requirements on how Payment Services Providers (PSPs) must safeguard customer funds in the UK.


Safeguarding means keeping customer funds separate from the PSP’s own money and assets. The safeguarding provisions are stipulated by the second Payments Services Directive (PSD2) and the second Electronic Money Directive (EMD2), implemented through the Payment Services Regulations 2017 (PSRs) and the Electronic Money Regulations 2011 (EMRs) and interpreted by the regulator, the Financial Conduct Authority (FCA).

Authorised payment institutions and electronic money institutions have a duty to safeguard the funds held on behalf of clients in one of the following ways:

  • Received funds must be held in a separate account with a European Economic Area (EEA) authorised bank; or
  • Client funds must be covered by an insurance or a guarantee policy.

In keeping with the UK regulations, FMPay safeguards client funds by holding them in a separate bank account with a reputable bank licensed by the European Central Bank.

We adhere to the following safeguarding procedures to ensure that the funds of our clients are safe:

  1. Identification and segregation of the relevant funds from FMPay working capital and other funds. The relevant funds include those of customers held in accounts or money debited for payment transactions. Safeguarding starts immediately once FMPay receives the relevant funds and continues until it pays these out to the merchants or executes transactions on behalf of its customers.
  2. Placement of the relevant funds in a separate account which is named in a way that shows it is a safeguarding account. FMPay will only use safeguarded funds to make payments as instructed by our clients.
  3. Reconciliation of funds and correction of discrepancies on a daily basis. This means we ensure that there is no commingling of funds and, at any time, we are able to confirm how much is held on behalf of each client.
  4. Annual audit of compliance with safeguarding requirements to ensure adequate internal control mechanisms, including sound administrative, risk management and accounting procedures.

We always do our utmost to create a safe and productive environment for our merchants, so you may put your mind at rest and concentrate on your business development. This is because your funds will always be paid to you.

If you require further clarification, please contact us at [email protected].

If you have questions about these requirements or need some help, email us at [email protected]. and we’ll do our very best to sort it out for you.

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