Safeguarding of Merchant Funds - Business Account

How does Teya ensure that customer funds are not misused?

Teya is an Electronic Money Institution authorised by the Financial Conduct Authority, and as such, is subject to strict regulatory requirements, including extensive safeguarding obligations. This includes opening separate bank accounts for safeguarding customer funds which cannot be used by Teya for its operational or businesses purposes. Detailed records of all customer funds are maintained and Teya conducts an external audit on an annual basis. This independent audit assesses our safeguarding framework against our regulatory and legal obligations, ensuring that our processes meet the relevant requirements for protecting member funds.   

What does Teya do with my money?

Teya safeguards merchant funds by keeping them separate from its own operational funds. In line with the relevant regulations, all customer funds are held in specially designated segregated accounts at approved credit institutions (i.e., banks or building societies). Teya is not legally allowed to use these funds for its own purposes, this means that money is not loaned out or invested and sits in the safeguarding account. These funds can only be used as directed by the member.

What happens to my funds if Teya experiences financial difficulties?

In the unlikely event of financial difficulties or insolvency, safeguarding regulations ensure that member funds are ringfenced and remain protected. As the funds are safeguarded, they are kept separate from Teya operational funds and business activities, and members will be able to reclaim their funds without interference from company creditors. The only amount that can be deducted from merchant funds pertains to the liquidator’s costs of distributing the pooled funds from the safeguarding account.

Are member funds protected under the Financial Services Compensation Scheme (FSCS)?

No, the member’s Business Account is an e-money account and not a bank account. Customer funds held by Electronic Money Institutions like Teya are not protected under the FSCS. The safeguarding regulations, however, provide an alternative form of protection, ensuring that merchants funds are ringfenced and will be returned to members in an insolvency event.

How can I have confidence in Teya’s safeguarding processes?

At Teya, we take safeguarding very seriously and have implemented processes and procedures to protect customer funds, in compliance with the relevant regulations. We engage an independent third-party auditor on an annual basis to conduct a thorough review of our safeguarding processes. This independent audit assesses our safeguarding framework against our regulatory and legal obligations, ensuring that our processes meet the relevant requirements for protecting member funds.