On 20th October 2020 Cashflows account managers e-mailed partners and merchants in the European Economic Area (EEA) to let them know about plans to Brexit-proof services to them. This allows them to continue to receive payments after the UK Brexit transition period ends on 31st December 2020.
If you are a merchant, the change is being managed on an opt-out basis. No action is required, unless you wish to opt out of the proposed arrangements, which will terminate your contract with Cashflows. Those wishing to opt out are able to do so with immediate effect by e-mailing Cashflows at email@example.com, provided that they do so before the transfer date referred to below. If you are a partner, you will receive a variation to your partner agreement from us which you will need to sign to permit the transfer to happen
The first point of contact for enquiries are your Cashflows account managers or Customer Service. However, this Frequently Asked Questions document may provide all the answers you need.
What is happening?
In short: Brexit. The UK left the European Union on 31st January 2020 and entered into a transition period which ends on 31st December 2020.
This has implications for those in the European Economic Area (EEA) , who originally signed an agreement with Cashflows Europe Limited (‘Cashflows’).
Cashflows is authorised and regulated by the UK Financial Conduct Authority and from 2021 may not be able to passport this licence into the EEA.
To ensure that you have continuity of service, Cashflows has arranged that its Dutch subsidiary company, PayCheckout B.V., will take over providing acquiring services. A date (‘the transfer date’) is not yet decided, but it will take place before the 31st of December 2020.
There are no changes if you’re UK-based. Your agreement with Cashflows Europe Limited continues unchanged.
How will this impact you?
The switch from Cashflows to PayCheckout B.V. will affect businesses differently.
- For some, there will be little to no impact beyond a change of name on the contract for providing acquiring services and the name on statements as the settlor of funds:
Direct settlement to EEA-based businesses will be paid by PayCheckout Foundation and appear as PayCheckout Foundation on statements. PayCheckout Foundation is a legal entity registered in the Netherlands which will hold settlement funds in safeguarded accounts as required by Dutch law.
Acquiring services will continue as usual from the transfer date. All other commercial terms as well as your Cashflows account manager will remain the same.
- For others, there will be slightly more impact, depending on the services you take from Cashflows today. The two main changes are:
1. Amex: PayCheckout B.V. does not have an agreement with Amex, so from the transfer date, you will not be able to accept Amex payments.
Cashflows account managers will be in touch if this affects you. Any enquiries related to Amex acceptance should be referred to the relevant Cashflows account manager or Customer Services.
2. Currency settlement: From the transfer date, transactions will be settled in five currencies: EUR, GBP, USD, AUD and DKK. All other currencies will be settled in EUR.
Cashflows account managers will be in touch if this affects you. Any enquiries related to currency settlement should be referred to the relevant Cashflows account manager or Customer Services.
What action is required from you?
If you are a merchant, the change is being managed on an opt-out basis. No action is required from you, unless you wish to opt out of the proposed arrangements, which will terminate your contract with Cashflows. Affected partner (those based in the EEA or with merchants based in the EEA) will receive variations to their partner agreements in due course which they will need to sign and return to us.
Merchants wishing to opt out of the transfer are able to do so by notifying Cashflows by e-mail to firstname.lastname@example.org. This must be done before the transfer date with immediate effect and in accordance with clause 13.1 of the contract.
Who is PayCheckout B.V.?
Cashflows bought PayCheckout B.V., a Dutch payment institution, in 2018 as contingency against its UK FCA licence not being passport-able across the EEA.
This makes PayCheckout B.V. a 100%-owned subsidiary of Cashflows, trading as Cashflows in the EEA.
PayCheckout B.V. is based at Noorderhof 24, 5804 BV Venray, Netherlands. It is a payment institution registered in the Netherlands with the Dutch Chamber of Commerce number 59750111. And is authorised and regulated by the Dutch National Bank under number R128787.
When will the changes be effective?
From the transfer date, PayCheckout B.V. will assume responsibility for providing acquiring services to EEA-based partners and merchants.
Why is this happening now?
Cashflows bought PayCheckout B.V. in 2018 as contingency against its UK FCA licence not being passport-able across the EEA. As the end of the UK Brexit transition period approaches, it is time to action this contingency.
It is important to note that you will have continuity of service irrespective of the ongoing political discussions about a UK Brexit agreement (so-called ‘deal’ or ‘no-deal’ agreement), unless you opt out of the arrangements as set out above.