Relevant funds must be safeguarded. These are sums received in exchange for electronic money that has been issued by our regulated entity. Electronic money issued by PayrNet is credited to a ledger account on the Railsr platform. A positive ledger account balance is considered evidence that electronic money has been issued.
Where Payrnet has issued electronic money (“e-money”) to your customers, these relevant funds have been appropriately safeguarded as required by The Electronic Money Regulations 2011 and The Payment Services Regulations 2017. PayrNet takes its responsibility to protect customer funds very seriously. As an authorised e-money institution we are obliged to hold the funds received from our customers for e-money and/or payments separately from our own company funds and in an EEA-authorised credit institution or Central Bank until we make our customers payment.
This means that in the event that PayrNet becomes insolvent, the administrator will be able to identify the funds that belong to these customers and these customers’ claims will be paid from these funds in priority over all other creditors (minus the cost of distributing the funds to meet the customers’ claims).
We safeguard customer funds with a number of authorised credit institutions and Central Banks, depending on the type of service that our customers have selected. In all cases, though, we have selected our safeguarding partners carefully to ensure that they have sufficient reserves.
We currently safeguard with Barclays UK and Frankfurt, The Bank of England, The Bank of Lithuania and Credit Mutuel Arkea.
