How is my money safeguarded?

When fiat currency is transferred, it initially goes through the Payment Account issued by Transact Payments Limited, a GFSC-licensed Electronic Money Institution , and then automatically converts to tally and is added to your TallyMoney Account Whilst typically it only takes a few seconds before your fiat money is converted to tally, some transfers can take longer to arrive. During this window, your fiat money is not covered by the Financial Services Compensation Scheme but rather it is protected by Transact Payments Limited under the process known as ‘safeguarding’, a regulatory requirement for E-Money Institutions.

Under this process, E-Money balances must be segregated from all other cash balances, such as Transact Payment Limited’s’s operating funds. Transact Payments Limited cannot use fiat funds received for its own purposes or lend those funds to other customers. These segregated balances must be held with a bank and be routinely reconciled to ensure that the sum of all issued E-Money balances is the same as the sum of cash held by the bank in the segregated account.

So, what happens if Transact Payments Limited ceases trading? Well, any money sent to your TallyMoney Account not yet converted to tally will be made available to the customer, minus any insolvency administrative charges. The process of distributing safeguarded funds may take longer than a claim under FSCS. But you would only be affected if Transact Payments Limited went into administration during that very temporary period before your fiat money is converted to tally. Once your transfer in has been converted to tally and appears in your TallyMoney Account, you’re good as gold.