Glossary entry

Safeguarding

Safeguarding is the set of arrangements a payment firm uses to protect customer money, such as keeping it separate from the firm's own funds. How it works differs from firm to firm and from the protection that applies to a bank deposit, so read each provider's own explanation of what happens to your money while a transfer is in progress. It is a reason to check authorisation on the FCA register and to read the terms before sending a large amount, instead of assuming every firm protects funds in the same way. See also: FCA, KYC, and the guide Bank or Specialist Provider?