Protection for e-money deposit in 'amex balance'

amex

#1

I just had a quick question regarding the ‘amex balance’ - out of interest, I was wondering where the money that is loaded is stored? Is it with Wirecard as the issuing bank? Is there any deposit protection if in the worst-case scenario that Curve/Wirecard/partners became insolvent?


#2

@james3uk I asked the same question elsewhere and have received no response to date. Curve does not have a banking licence so any balances are not covered by FSCS. You would hope that these funds are in a segregated account but the lack of specification of this issue is surprising: instead, there seems to be more focus on the colour choices for “metal” cards.


#3

100% agree. Whilst I don’t intend to have more than £100 in the balance at a time (given auto top-up), I do find it concerning the lack of clarity as to where this money is actually going.


#4

There was an answer in December re Wirecard…


#5

From what I know of the banking sector, if a company doesn’t have a banking license but the cards are issued by a company who has a license (in this case WireCard), your money is secured by the Deposit guarantee schemes
But don’t pin me on this!
Thats how I understood it with any other fintech, for many of them WireCard is the card issuer and therefore your funds are protected by WireCard.

Edit: just found an interesting piece, might be outdated thou: https://www.bbvaresearch.com/wp-content/uploads/2016/10/Safeguardingelectronicmoneyfunds_en.pdf


#6

Wirecard is not a bank either, so the top-ups are not covered by FSCS or any other deposit guarantee scheme: https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000m4IXHAA2.

At best, the funds will be kept in a segregated account that cannot be used for Wirecard’s own purposes.

Perhaps Curve could expressly confirm the processes in place to protect funds deposited in the Amex account? In aggregate these could be very significant sums and the mechanism is very different to the way in which Visa and Mastercard are processed (or, to my understanding, how Amex was processed before May 2016).

@ediflyer @Lucas


#7

Does Curve not claim to have 300,000 customers? If each tops up to Amex £1,000 that is £300,000,000 no? Neither Curve nor Wirecard (which is German passported under EU rules) has a deposit-taking license. @Curve_Marie @Lucas @james3uk


#8

**3.1. Your Curve Card is linked to an Account which stores E-money. No interest is payable on your Account. Please note that E-money is not covered by the Financial Services Compensation Scheme. **

While Amex was proposed long back, it was assured that the funds will be held under an FSCS Account (from old slack) but it seems like that’s not the case.