FAQ

  • What’s the difference between a Small Payment Institutions V Authorised Payment Institutions?

    What is a small payment institution?

    The Financial Conduct Authority, in accordance with Payment Services Regulations, defines a small payment institution as being any person, including a corporate entity, registered as a payment institution and included by the Financial Conduct Authority in the Financial Services Register as a small payment institution.

    What is an authorised payment institution?

    An authorised payment institution is any person, including a corporate entity, authorised as a payment institution under the Payment Services Regulations and included in the Financial Services register to that effect.

    What is the difference between a Small Payment Institution (SPI) V an Authorised Payment Institution (API)?

    All companies operating a remittance (money transfer) service must also possess a money transmitter licence from HMRC. Under each of the FCA licences, there are a number of shared provisions applicable to all companies operating in the market, as well as requirements and permissions specific to each type of licence.  For instance, API licensed firms are required to maintain minimum own funds levels, whereas this condition does not apply to those holding an SPI licence.

  • What is an e-money institution?

    An e-money institution supplies the financial product, electronic money. Electronic money can be used to conduct payment transactions at other enterprises than the electronic money institution. Only legal persons can apply to be authorised as an electronic money institution.

  • We are an Electronic Money Institution – does the RTS apply to us?

    The RTS applies to all Payment Services Providers.  If your customers can give payment instructions remotely (by phone, fax, e-mail, text, online etc.) you are required to apply strong customer authentication, unless one of the exemptions applies.  If your customers can view their payment accounts online then they must be able to do so through an Account Information Service Provider (AISP).  If they can give payment instructions online then they must be able to do so through a Payment Initiation Service Provider (PISP).

  • We already use two factor authentication so are we covered?

    It depends. If the password authenticates the amount and beneficiary as well as the customer’s identity, it will be fine.  If not, you will need to update your system.Electronic money (e-money) is electronically (including magnetically) stored monetary value, represented by a claim on the issuer, which is issued on receipt of funds for the purpose of making payment transactions. It is accepted by a person other than the electronic money issuer.

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