The document states that merchant e-money accounts held with Checkout.com are not bank accounts and are not covered by the FSCS, but are subject to safeguarding requirements under UK payment and e-money regulations, with funds held separately from Checkout.com's own assets.
This analysis describes what Checkout.com's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes that in the event of Checkout.com insolvency, merchant funds are protected through regulatory safeguarding requirements rather than FSCS deposit protection, meaning the recovery process and protections available differ materially from those applicable to bank deposit accounts.
The agreement states that merchant funds held in Checkout.com accounts are not FSCS-protected and are instead subject to e-money safeguarding requirements, under which funds are held in segregated accounts with UK banks. In the event of Checkout.com insolvency, the document states that safeguarded funds would be protected against creditor claims.
Cross-platform context
See how other platforms handle FSCS Non-Coverage Disclosure for E-Money Accounts and similar clauses.
Compare across platforms →"If you are a merchant using Checkout.com's services, please note that your account is not a deposit or savings account – it's an e-money and payment account. As your Checkout.com account is not a bank account, it's not covered by the Financial Services Compensation Scheme (FSCS). Although there is no FSCS protection, Checkout.com ensures that your money is safe by complying with the safeguarding requirements under the payments and e-money regulations. We do this by holding our customers' money separately from Checkout.com's own funds – this is called 'safeguarding'. Customers' money is held in separate bank accounts with top UK banks.Excerpt from Checkout.com's Terms
REGULATORY LANDSCAPE: This disclosure reflects obligations under the Electronic Money Regulations 2011 and Payment Services Regulations 2017 regarding safeguarding of customer funds, and the FCA is the relevant enforcement authority.
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This provision establishes that in the event of Checkout.com insolvency, merchant funds are protected through regulatory safeguarding requirements rather than FSCS deposit protection, meaning the recovery process and protections available differ materially from those applicable to bank deposit accounts.
The agreement states that merchant funds held in Checkout.com accounts are not FSCS-protected and are instead subject to e-money safeguarding requirements, under which funds are held in segregated accounts with UK banks. In the event of Checkout.com insolvency, the document states that safeguarded funds would be protected against creditor claims.
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