Payment services include:
Retail money remittance services: A money transfer service offered to a sending customer whereby a remittance payment is made to a named receiving customer, often in another country, and where the transaction size is less than Â£5,000
Wholesale payment services: A money transfer service where the Money Transfer Principle is acting as an Intermediary Payment Service Provider (IPSP) and/or foreign currency provider for an originating MSB or Payments Institution
High value money transfer services: A money transfer service offered to a sending customer whereby a payment is made to a named receiving customer, often in another country, and where the transaction size is Â£5,000 or more
Foreign Exchange plus onward transfer: Provision of currency exchange for a corporate or private client plus onward transmission of funds for a payment purpose (e.g. purchase of property/settlement of an invoice)
Escrow Services: A service where the payment company receives and holds funds from the customer of a client and pays them out to the client on confirmation of receipt of goods by the customer of the client (e.g. EBay)
Payment Account services: Services where cash can be placed onto a payment account (and where cash can be withdrawn from that account)
Credit card services: transactions where the funds are covered by a credit line for a payment service user
Pre-paid payment cards, debit cards, direct debit and standing order services: transfers of funds with the customerâ€™s payment service provider or with another payment service provider
Mobile phone or fixed phone payments: execution of payment transactions where the consent of the customer to execute a payment transaction is given by means of any telecoms, digital or IT device
Offering any or all of the services offered above means that the company qualifies as a Payment Institution and is regulated by the Financial Services Authority as well as by HM Revenue and Customs.
Other types of financial services:
Foreign Exchange: Service where the client (private or corporate) delivers funds in one currency and receives funds back in exchange in another currency
HMRC registration required for this service.
Third party cheque cashing: Cashing of a cheque in the name of the customer, cheque has been provided to the customer by a third party (e.g. employer)
Loan products: Short term loan products such as Pay Day loans, pawn broking, debit card advances etc â€“ (these services require a consumer credit licence)
HMRC registration along with a consumer credit licence is required for these services.