Frequently Asked Questions
What is Earthport’s differentiator?
The combination of…
- ‘local collect – local payout’ model
- wide international reach
- efficient business operations delivering high STP rates
- technology designed and operated to banking systems standards
…results in Earthport being able to offer:
- low entry cost
- low operating cost
- fast time to live operation
- low risk
…international, multi-currency payments and collections services.
How does the ‘local collect – local payout’ model work?
For a payout: the payer provides payment instructions to Earthport (submitted via the Earthport API). In parallel he pays in liquidity equivalent to the payment(s) he wishes to make, into a designated Earthport segregated account in a country and currency convenient to the payer. (This is typically a very low cost method of transferring funds.) Earthport then pays out funds from an Earthport segregated account in the country and currency specified by the payer (applying an appropriate FX rate if necessary).
Earthport aggregates client liquidity across its many segregated accounts, which are funded and depleted by many different payments flows. Costs are thus minimised.
For a payin (collection): the merchant (beneficiary) requests a VAN for the payer (buyer) via the Earthport API.
Using their VAN as a reference, the payer pays in funds to an Earthport segregated account in the payer’s country and currency. Earthport, on receiving the payment, notifies the beneficiary and allocates the funds to the beneficiary’s balance at Earthport
A segregated account is a type of bank account made available by a bank to its corporate customers, exclusively for the maintenance of client monies. Earthport has at least one segregated account per country/currency in which it operates.
Segregated accounts are mirrored in the Earthport platform by client-specific virtual accounts. Each Earthport client is assigned a Virtual Account with a unique 13-digit virtual account number (VAN).
Each movement of funds through the segregated accounts is matched by corresponding updates to the appropriate virtual accounts by the Earthport system. At any given moment, the aggregate sum of funds displayed in all customer virtual accounts equates to the total sum of funds held by Earthport in our segregated accounts. This is a cleared funds position, therefore providing a real-time multicurrency cash position.
How are my funds kept separate from Earthport company funds?
For every segregated account we hold worldwide, we also hold a house account. Client funds are held in segregated accounts and Earthport company funds, such as fees, are held in House Accounts. The purpose of the house account is to ensure that there is a clear distinction between client and company funds at all times.
The safety and security of client funds is of paramount importance to Earthport. Earthport is registered with HM Customs and Excise in the UK for anti-money laundering (AML) purposes and takes compliance guidance from the Joint Money Laundering Steering Group (JMLSG) of the British Bankers' Association. Earthport operates an in-house compliance function ensuring that transactions are executed within a secure and compliant environment. New Earthport clients are reviewed by the compliance team, ensuring that appropriate AML and KYC checks are executed and documented.
How secure is the Earthport system?
Earthport’s systems are hosted in one of the UK's most secure data centres. We have industry standard disaster recovery processes and systems in place so that we can continue to service our customers in the unlikely event of a system failure. Enterprise Level Firewalls have been installed at every entry point providing leading edge network security. Access to Earthport's core is only permitted via an encrypted connection and is restricted to key members of staff who monitor the network for vulnerabilities and unauthorised access.
Earthport holds single and multicurrency segregated accounts with over 20 banks, enabling collection and payout locally in nearly 60 countries and territories. In addition Earthport is a member of SWIFT through a Member Administered Closed User Group (MA-CUG), enabling Earthport to provide a fully global breadth of service.
Earthport continually establishes new banking relationships as well as consolidating and extending banking networks in our existing destinations. Please communicate your desired coverage to enable Earthport to best serve your needs.
Which major banks does Earthport have relationships with?
Earthport currently holds segregated accounts with banks including:
- ANZ
- Allied Irish Bank
- Barclays Bank
- Citibank
- Credit Suisse
- First National Bank
- Fortis Bank
- HSBC
- ING Bank
- Lloyds TSB
- Malayan Banking Berhad
- Nordea
- Raiffeisen Banking Group
- Skandinaviska Enskilda Banken (SEB)
- Standard Chartered Bank
What is SWIFT? How does Earthport link to SWIFT? How can Earthport's clients benefit from this link?
SWIFT is the Society for Worldwide Interbank Financial Telecommunication, a member-owned cooperative through which the financial world conducts its business operations with speed, certainty and confidence. Over 8,300 banking organisations, securities institutions and corporate customers in more than 208 countries trust us every day to exchange millions of standardised financial messages.
Earthport is a member of SWIFT through a Member Administered Closed User Group (MA-CUG), enabling Earthport to provide a fully global breadth of service.