Wirecard Issue - Frequently Asked Questions

Updated 28/06/2020

Can I log in to my account and check my balance?
You will still be able to log in to your U Account as normal and you can view your balance, recent transactions and your statements

Can I use my U Account Mastercard?
You won’t be able to use your U Account Mastercard while the FCA’s suspension is in place. This means your card will be declined for purchases (contactless, chip & PIN and online) and you won’t be able to withdraw money from ATMs

When will I be able to use my card again?
Unfortunately, we don’t yet have a timeframe for this. We have been assured this is a temporary halt of services and we will keep you updated throughout the process.

Can I receive payments into my U Account?

  • If a payment is made into your U Account by faster payments (this is the standard, same-day bank transfer service) after 11.00am on Friday 26 June, it will be returned to the sender. Payment returns will be made the same day, unless the payment was made after 9.00pm on a Saturday or Sunday, in which case it will be returned the next day
  • If a payment is made into your U Account by BACS (the three-day bank transfer service used for benefit payments and, often, for wages and salaries), it will be returned to the sender using the same three-day BACS service. So if, for example, your payment is due to credit your account on Monday 29 June, it will be returned to the sender by Thursday 2 July
  • If you deposited cash into your U Account at a Paypoint outlet after 4.00pm on Friday 26 June, the deposit will be credited to your U Account after the FCA suspension is lifted. From Saturday 27 June, and until the suspension is lifted, Paypoint will not accept cash deposits into U Accounts.

Making payments from your U Account

  • If you made a payment by faster payments on or after Friday 26 June, or you had a scheduled payment due to leave after this time, the payment will show on your statement but it will not be sent to the destination account until the FCA’s restriction is lifted.
  • Direct debit payments from U Accounts were processed as normal on Friday 26 June, but will be suspended from Monday 29 June. To avoid confusion we will not re-process direct debit payments once the suspension is lifted. You may wish to contact the company to whom the payment was due to tell them about the FCA’s suspension and the consequent suspension of your payment.
  • You won’t be able to transfer money to other U Accounts while the FCA’s suspension is in place.

I just made a payment, what will happen to it?
Your payment won’t be sent whilst the service is temporarily suspended. You will need to make your payment again when you get access to your account.

Is my money safe?
Your money is safe. Wirecard have reassured us that all client funds are safely held in segregated accounts with major banks.

Who is Wirecard?
Based in the UK, Wirecard Card Solutions Ltd. is an authorised and registered e-money Institution. They provide us with the functionality to operate our prepaid debit cards.

Why is this happening?
The Financial Conduct Authority (FCA) have instructed Wirecard to temporarily suspend operations in the UK whilst they make extra checks following the problems experienced this week by Wirecard’s parent company, Wirecard AG, based in Germany.

When will this issue be sorted?
We don’t currently have a definite time for when your account will be back up and running but we are in constant contact with Wirecard and will keep you updated as soon as we have any news.

How will I be notified of an update?
We will keep you updated by email, social media, and on this page.

Why weren’t we informed earlier?
We were informed that accounts would be temporarily suspended at 11:30am on the 26th June. By 12pm this had taken effect. We communicated this to you as quickly as we could.

Why is our money in a Barclays account?
It is required by the FCA for all funds to be stored in a ring-fenced account. Any funds within the ring-fenced Barclays account belongs to our customers.

Why can I not withdraw my money if it’s in a Barclays account?
These funds are in a ring-fenced account, which cannot be accessed by Wirecard or ourselves directly. In order for these funds to be released, the temporary suspension in place by the FCA will need to be released.

Will we still be charged fees?
We have turned off collections of any account fees. You will not be charged for your account during the duration of the suspension

Why can’t we transfer out money when other Wirecard-backed accounts have allowed customers to do this?
The U Account uses Wirecard as both a card issuer and a banking partner. Wirecard has been instructed by the FCA to temporarily cease both activities, so this means our cards and our banking services (faster payments, BACS, direct debits) are all suspended.

Some other companies use Wirecard for their payment cards but not for their banking services. So their cards are suspended but banking services, which are managed elsewhere, can continue.

Some other affected companies have moved their services away from Wirecard really quickly. Why can’t U Account do that?
The U Account is operated solely under Wirecard’s e-money licence. A handful of other companies already had their own licences, or other sponsoring organisations like Wirecard, in place, so could move their accounts to them quickly. This doesn’t help customers access the accounts that were already suspended, but it does give them another option for the future.

A new e-money licence takes several months to put in place. However, U Account will be reviewing all options to make sure this never happens to our customers again.

I am expecting benefits to be paid into my account, what do I do?
The DWP has issued a helpful guide as to what you are able to do next here.

Is U Account shutting down?
No - U Account isn’t shutting down, in fact, we have some amazing developments in the works for our customers.

Will my account be closed?
No. We’re hoping to get you back up and running as soon as we possibly can.