How is my money safeguarded?
When fiat currency is transferred into a Tally Account, it initially arrives via PayrNet Limited, an FCA-licensed Electronic Money Institution (FCA No. 900594). Whilst typically it only takes a few seconds before your fiat money is converted to tally, some deposits can take longer to arrive. During this window, your fiat money is protected by PayrNet 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 PayrNet’s operating funds. PayrNet 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 PayrNet ceases trading? Well, any money sent to your Tally 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 PayrNet went into administration during that very temporary period before your fiat money is converted to tally. Once your deposit appears as tally in your Tally Account, you’re good as gold.