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Wirecard Situation: Customer and Cardholder FAQ
Following the FCA’s decision on Friday to freeze all activity on accounts and cards issued by Wirecard Card Solutions Ltd, we have created a list of common questions asked by both B4B Payments and Bread4Scrap customers and cardholders.
Who are Wirecard Card Solutions?
Why didn’t B4B Payments warn me about this sooner?
Is it only B4B Payments or Bread4Scrap customers and cardholders that are affected?
When will I be able to access my account?
If my money is safe in a Barclays bank account, why can’t the FCA just release it?
The issues facing Wirecard AG in Germany have been known for a week. Did you not see this coming?
What actions are B4B Payments & Bread4Scrap now taking to resolve the situation?
How do I know my money is safe in the Wirecard Card Solutions Barclays account?
My card is showing as ‘cancelled,’ does this mean I will need a new card?
What happened?
On 26 June 2020 the Financial Conduct Authority suspended operations of Wirecard Card Solutions Ltd UK, our card-issuing partner.
Who are Wirecard Card Solutions?
Wirecard Card Solutions is an e-money institution. B4B Payments and Bread4Scrap use them to provide e-money accounts to our customers, issue debit cards and process customer payments. That means the money in a B4B Payments or Bread4Scrap customer or cardholder’s account is not held by B4B Payments or Bread4Scrap, but with Wirecard Card Solutions. This money is kept in a ring-fenced (safeguarded) Barclays bank account.
What does this mean to me?
The FCA action means the money in B4B Payments and Bread4Scrap customer and cardholder accounts is frozen. Your money remains completely safe, but the FCA action means that you cannot access it right now. Read more on the FCA website
Why didn’t B4B Payments warn me about this sooner?
The Financial Conduct Authority suspended its permission for Wirecard Card Solutions Limited to operate on the morning of 26 June 2020. We had no prior warning that this was going to happen and that the FCA would freeze cards during their investigation with Wirecard in the UK. As soon as B4B Payments or Bread4Scrap learned that the FCA was suspending operations of Wirecard Card Solutions, we contacted all our customers to let everyone know.
Is it only B4B Payments or Bread4Scrap customers and cardholders that are affected?
No. Quite a few UK-based companies and their customers have been affected by the sudden suspension of Wirecard Card Solutions. Other e-money providers have also been affected.
So, where is my money?
If you’re a B4B Payments or Bread4Scrap customer or cardholder, your money is held by Wirecard Card Solutions in a ring-fenced Barclays account. The FCA action means that Wirecard Card Solutions’s account is frozen, so you cannot currently access your funds. When the FCA allows the money to be released you will be able to access it.
For the most up to date information, we urge our clients to refer to the FCA website.
When will I be able to access my account?
We expect the FCA suspension to be lifted – and so your inability to access your account and card is temporary. When we have absolute clarity on the timing of card reactivation, we’ll immediately let you know.
For the most up to date information, we urge our clients to refer to the FCA website.
I am expecting a payment. What happens if someone sends money to my B4B Payments & Bread4Scrap card now?
Unfortunately, if you are expecting any payments using Bread4Scrap or B4B Payments (ie. your employer) our admin accounts are temporarily blocked from uploading funds or sending payments. For urgent payments, we suggest contacting the sender and ask them if it is possible to send funds to a different account. Please keep in mind we expect this situation to be temporary and resolved soon. It may not be possible for those senders to process payments externally to their B4B Payments or Bread4Scrap platform as their funds are also frozen.
For the most up to date information, we urge our clients to refer to the FCA website.
How will you keep me updated?
We will be informing our clients via emails, in the app and by posting the latest information here on our website. For our cardholders, we will keep you up to date via Twitter as well as here on the website. When cards are reactivated, we will send an SMS. Please ensure your mobile number is up to date by logging into your account and accessing your personal details. We know how difficult this situation is, and we are trying to keep you as informed as possible. As soon as we know more, we pass the information on to you.
If my money is safe in a Barclays bank account, why can’t the FCA just release it?
We believe that the FCA will eventually do this. They are reviewing the situation with Wirecard Card Solutions and need to make sure everything is in order before they can release the funds. At this stage the FCA have not told us how long this will take.
For the most up to date information, we urge our clients to refer to the FCA website.
The issues facing Wirecard AG in Germany have been known for a week. Did you not see this coming?
We were aware of the situation with Wirecard AG in Germany; however we were repeatedly reassured by Wirecard Card Solutions Ltd that this would not affect operations in the UK.
What actions are B4B Payments & Bread4Scrap now taking to resolve the situation?
Our goal is to give you access to your money as quickly as possible. We are speaking to the FCA for further guidance. With regards to future plans, B4B Payments has been planning an updated long-term solution for when the UK leaves the EU at the end of the year. We can confirm we have accelerated these plans. Our goal is to continue providing a stable platform that will allow our customers uninterrupted use of their cards and funds moving forward (UK and non-UK). At this time, we are unable to give definitive timelines – but will have an update for you in the coming weeks. We assure you that the B4B team are working around the clock to resolve this situation.
How do I know my money is safe in the Wirecard Card Solutions Barclays account?
It is a requirement from the FCA that funds are stored in a ring-fenced account, and the FCA supervises regulated entities to make sure they comply with the regulation and store the funds correctly. All funds in the Barclays account belong to B4B Payments and Bread4Scrap customers and cardholders and cannot be used for any other purposes. Although the account was officially attributed to Wirecard Card Solutions, B4B Payments and Bread4Scrap had visibility of the Barclays account prior to the FCA suspension, and we saw no unusual activity.
I loaded a float payment to my B4B Payments or Bread4Scrap account on the morning of 26 June. It shows as sent at my bank, but it hasn’t arrived at my admin portal. What happened to it?
If you sent it out before 10am on 26 June it should have been delivered to the destination.
If you sent it after 10am 26 June it will not have gone. Unfortunately, we weren’t aware of that at the time that cards would be frozen. These funds are still in the ring-fenced Barclays account and should eventually be credited back to your B4B Payments or Bread4Scrap account and made available to you.
My card is showing as ‘cancelled,’ does this mean I will need a new card?
No. This is only a temporary measure put in place by the FCA to ensure cards are not used during this time. Once the FCA release their suspension of funds held by Wirecard, your card will be reactivated.
For the most up to date information, we urge our clients to refer to the FCA website.