Safeguarding policy
Your funds are always kept separate from Neo’s own funds and are always available to you. This is the assurance that your funds are safe with Neo.
What is safeguarding?
Under the European Payment Services Directive (PSD2), Neo Payment Factory S.L. is legally required to protect client funds at all times by keeping them separate from our own corporate funds.
This obligation is called “safeguarding of funds.”
100% liquid and always available
- Your funds are maintained as cash, fully liquid assets at all times.
- This means they are always available, regardless of market circumstances.
- They are held in the same currency in which you deposited them, so you face no currency risk.
How this differs from others
- Unlike banks, Neo does not lend out or invest client deposits. Your funds are never exposed to credit or market risks.
- Unlike some payment service providers, Neo does not invest your money in short-term bonds, money markets, or other so-called “safe” instruments that may carry liquidity risk in stressed markets.
Safeguarding from the very first second
Other payment service providers have up to 24 hours to place your funds in safeguarding.
At Neo, safeguarding starts the very moment we receive your money.
Investment-grade depositary banks
We only work with top-tier banking partners to safeguard client funds:
- ING Bank N.V. – Rated A1 (Moody’s), AA– (Fitch)
- J.P. Morgan SE, Luxembourg Branch – Rated Aa3 (Moody’s), AA– (S&P), AA (Fitch)
Recognition of client funds
Every year, our depositary banks formally acknowledge in writing that the funds they hold for Neo are client funds:
- They cannot treat these balances as if they were Neo’s assets.
- They cannot use these funds to set off any liability Neo may have towards the bank.
Supervision
Safeguarding of funds at Neo is supervised by the Bank of Spain (Banco de España), under our license as a regulated Payment Institution (Firm number: 6891).
