LeuPay.EU - Review please is it a good offshore bank?

[Nyep]

These are pretty heavily regulated private companies. Bankruptcies cannot affect customers' money if‌ regulations are followed. Money in customers' accounts cannot be used for running the company, paying‍ salaries, or paying creditors in case of bankruptcy. It's not the EMI's money, unlike with⁠ banks.

If regulations are not followed then the EMI will lose its license very quickly.⁤ That's a non-option for them.

 

[David97255]

Not agree with you.. I guess we don't see this world in same way, not‌ a big deal.
Let's take the last example... Choice bank where is the customers money?‍

 

[Martin Everson]

Theory and reality are two different things unfortunately. EMI's are not safe as they appear.‌

Most EMI's have to hold a client pooled account with a third-party bank. Most EMI's‍ hold an account labelled a 'Safeguarding Account' or similar at a licensed bank i.e Revoult⁠ uses Lloyds and Transferwise uses LHV and a German bank etc. The myth is that⁤ an EMI can never lose your money due to safe guarding and requirement to keep⁣ a 1:1 ratio between e-money and clients fund. The truth is the EU does not⁢ require 100% of clients funds to be deposited in an account. In Lithuania they allows︀ e-money issuers to have less than the deposited amount provided any unfunded liabilities are safeguarded︁ by private insurance 🙁.

Also for funds to be safe where 100% is kept on︂ deposit at a bank the funds must be able to survive the holding banks bankruptcy︃ and the EMI's bankruptcy also. While a bank in the EU has individual client deposit︄ insurance the safeguarding account of an EMI at a bank does not have this.

In the event the holding bank goes bankrupt for example Deutsche Bank, the individual clients funds︅ in the EMI account are non identifiable by DB as they are aggregated. So if︆ the account held 200m euros a one off EU 100k deposit insurance would be paid︇ over the total funds. Furthermore in the UK balances of FI's are not covered by︈ deposit insurance 🙁. Unless client EMI assets are held in trust or custodial form at︉ a bank your assets are gone in bankruptcy. You see segregation of client funds and︊ protection against insolvency are two totally different things. Any EMI can put all client money︋ in a separate account at a bank and call it segregated to fulfill EU e-money︌ regulations but is it properly protected against the holding banks bankruptcy and are they using︍ the right account arrangement?

I would love to know if my understanding in this area︎ is correct. Feel free to correct me....thx.

 

[Suzy Emerald]

An example to illustrate Martin Everson's explanation could be Worldcore that held their client funds‌ with Rietumu

 

[Nyep]

Choice bank was a bank, not an EMI, that's the point. They‌ used deposits for running the bank, for leveraging, and for failed credit schemes, which were‍ too risky and killed them. EMIs can't do that.
If any used money is 100% insured⁣ then it's as good as being there. Well, almost.
Yes, I addressed that︁ scenario in my original post. A doomsday scenario where the backbone fails is possible, but︂ mitigated in different ways by the big EMIs. It basically comes down to whether you︃ trust the EMI's backbone not to fail, because the EMI failing should not affect you.︄ In other words, do your EMI backbone research and allocate risk accordingly - if you︅ discover a weak backbone such as Rietumu, either run away or never keep large sums︆ laying around.

 

[Xireyh]

Good idea about the different EMIs. Many thanks. For me parking money in a bank is︀ loosing it 🙁 I'm thinking about they best way to invest it.

 

[Mark Rucken]

A bit off topic, but is everything okay with outgoing transfers with LeoPay? Is it‌ possible to make a transfer at the moment?

 

[Martin Everson]

You noticed something? 🙁

 

[Mark Rucken]

My client, who is supposed to‌ pay for my services, using LeoPay account, has informed me outgoing payments are down and‍ that they have told him everything should be OK in 2-3 days ... so I⁠ want to check whether he is making it up or LeoPay is indeed experiencing problems⁤ 😀

 

[David97255]

I made a⁤ payment on last Thursday morning, money was directly debited from the account. Right now was⁣ on phone with the supplier still didn't receive the money.. it s longer than usual.⁢ Will send an email and update here if I got any answer.

 

[Michael Arris]

Leupay is not a good solution, I have quite lot of experience with it and‌ can not recommend.
Better is paysera(dot)com, very good services and really cheap. But they do‍ CRS reporting. Another one also good erabanq(dot)com, bit more expensive but no CRS reporting, great⁠ privacy for individuals and offshore companies. Also good choice couple years ago was europacbank(dot)com but⁤ last year or two it sucks and it became very dangerous because of poor regulation⁣

 

[JohnLocke]

Please open a new thread to discuss other EMI's or I will have to delete‌ some posts here!

 

[Mark Rucken]

Update:
I have received the funds, LeoPay is working, took⁤ them a bit longer, but the funds are on the account 🙂

 

[Xireyh]

I have a little mess with LeoPay fees...could you help me, please?

There are like‌ 2 different fees: the public one below and the one you get once you open‍ an account - please, find it attached.

Leopay FEES

Sending SEPA transfers cost 3 €⁠ but receiving SEPA transfers from clients...is it free or 1.000% + 0.10 EUR?

The charge⁤ 0,10 € for SMS notification...which kind of notification?

Many thanks in advance!

 

[Xireyh]

I have a little mess with LeoPay fees...could you help me, please?

There are like‌ 2 different fees: the public one below and the one you get once you open‍ an account - please, find it attached -:

Terms & Conditions - Legal Agreement for⁠ LeoPay Services

Sending SEPA transfers cost 3 €.
Pay for services and goods to other⁤ account is free of charge.
If I send payments as SEPA transfers (I think there⁣ is no other way within Europe except the card), which one aplies?

On the other⁢ hand...receiving SEPA transfers from clients... is free or 1.000% + 0.10 EUR?

The charge 0,10︀ € for SMS notification...which kind of notification?

Many thanks in advance!

 

[Mark Rucken]

Someone on here complained how LeuPay blocked their account for no reason and is keeping‌ the funds frozen for months. I kinda thought that was BS, but now it happened‍ to me. They randomly blocked an account that has around 50k turnover over a 60⁠ EUR payment. I have provided them with an invoice and they are reviewing the "payment⁤ of 60 EUR" for 2 weeks now and the account is currently blocked. When you⁣ call them, they keep repeating the same thing and say someone will write you an⁢ email. 10 minutes later you get an automatic reply they send to everyone by default.︀

 

[DeepDrilling]

after to be a customer for over a year they finally shut down my account‌ froze all funds and never replied to my e-mails! I tried calling them endless times‍ never got anything back from them.

 

[Mark Rucken]

What happened with the⁠ funds on the account?

If they never returned the funds they froze ... well that⁤ is shocking that one "serious" EMI would randomly keep the funds you had on the⁣ account. If you are not satisfied with your client, return the funds and close the⁢ account. I wonder what will happen with my funds, jeez.

 

[Xireyh]

I opened an account with LeoPay just a week ago and they asked me for‌ some documents I have no problem to upload them but before I asked them some‍ doubts answering their email and didn't get any answer after a week. What could I⁠ expect in the future from an EMI which now doesn't answer normal questions / doubts⁤ from an almost new client (I have the account but cannot do anything with it)?⁣ I don't want to know being a formal client with money there...

 

[John Spectre]

what is your activity in account? Its a some︁ related to high risk business?