Frequently Asked Questions

Q. How much does it cost to use Transpact and how do we pay?

A. We have a fixed fee for transactions, which is normally split between buyer and seller costing you only £2.99 each for GB Pound transactions and only €3.49 each for Euro transactions. (See Fees & Costs for more details).

Q. Can I pay by credit card?

A. No, payment from your bank account acts as your 'virtual handshake' that you agree to the conditions of the transaction. Our service is set up to make immediate payments directly between bank accounts using the convenient, quick and free internet/telephone/mobile Faster Payment Service (FPS) system for GB Pounds or the SEPA protocol for Euro payments.

Q. As the buyer, do I have to pay the seller and Transpact separately?

A. No. You make one payment to cover your purchase and the Transpact fee.

Q. It is easier for me to make two or more payments to Transpact for money required, instead of one. Can I do so?

A. You may, but for every extra payment we receive, you will incur an extra payment-in fee, and must add this to your payments. Failure to do so will require you to make another payment for the shortfall, together with a further extra payment-in fee.

Q. I am the seller - why must I pay a fee ?

A. Your payment of our fee by bank transfer is part of your ‘virtual handshake’ that you agree to the conditions of the transaction you have agreed with the buyer. If the buyer agrees to pay the whole fee, you will indeed pay no fee.

Q. Can Transpact take money out of my bank account ?

A. No. Only you can take money out of your bank account. When you wish to make payment to Transpact's Client Account, you (and only you) instruct your bank in the same way that you would make any other payment from your bank account.

Q. Does Transpact affect my legal rights in a Transaction ?

A. Transpact protects you and does not lessen your legal rights in a transaction. Since Transpact only involves the payment for a transaction, you have every remedy in law after having used Transpact, just as if you had used another payment method. Even if you use the Transpact dispute process to resolve payment of the transaction amount and your chosen referee makes a binding ruling on who receives that payment, you still have every right in law including use of the Courts that you would have had had you used another payment method.
If you wish, you and the other party to your Transaction can agree in advance to settle any dispute concerning the transaction (and not just payment of the Transaction Amount) by using the Transpact dispute process. If you do so, then depending on what you decide in advance, a referee's decision may then be final, although this is outside the scope of Transpact.

Q. Can Transpact be used to pay for online auctions?

A. Transpact is suitable for any transaction involving payment of money, and so can also be used for payment following online auctions. For all but the lowest cost transactions, escrow via may well be the most secure and the lowest cost method to use for online auction payments (for both the buyer and the seller).

Q. How do I know I can trust you with my money?

A. Transpact is Authorised and Regulated by the FCA and registered with Her Majesty's Revenue & Customs (HMRC). Transpact exists in order to protect and safeguard YOUR money, and we have set up safeguards and security systems using securely encrypted web channels. Money you pay into our client accounts is segregated and ring-fenced by the Payment Services Regulations 2017 and can only be used for your benefit. In the event that anything happens to, this law safeguards your money. Please see Regulation 23 of the Payment Services Regulations 2017.

Q. From which countries can I use Transpact ?

A. You can use Transpact if you have a bank account in the UK, any EU country or Australia, Brazil, Canada, Hong Kong, India, Japan, Mexico, Norway, Singapore, Switzerland or the United States.
You can be almost anywhere in the world, but must have a bank account in one of these countries.
We may still be able to deal with you if you do not have a bank account in one of the above countries - see here for more details on countries not in the above list.

Q. In which currencies can I use Transpact ?

A. You can use Transpact in GB Pounds, Euros, US Dollars, Hong Kong Dollars, Canadian Dollars or Australian Dollars. Our standard transactions take place in Euros and GB Pounds and US Dollars. For transaction which are denominated in any other currency, surcharges apply - please contact Transpact in advance to be notified of these surcharges on a case by case basis.

Q. I am not a UK citizen. Am I protected ?

A. The UK laws and regulations which govern our services do not only protect UK citizens. So although you may not be protected by your local laws since we are outside their jurisdiction, you should be protected by UK law. See the Financial Ombudsman and the FSCS websites, for example, for details of how and when you can use these services to ensure that you are protected.

Q. Why are US Dollar transactions so much more expensive than Euro and Pound transactions ?

A. Both the EU and the UK have modern banking payment systems that allow money to be transferred between bank accounts almost immediately, at little or no cost. The US has a banking system that seems more reminiscent of the 1890's and telegraph operation than the 2010's and the internet. Unlike the EU and the UK, there is currently no easy way of sending US dollars irrevocably between two bank accounts at little cost, even in the internet age. Hopefully, one day soon the US can get its house in order, and charges can be brought down to EU and UK levels. Please note that Transpact's USD charges include the cost of our wiring money anywhere (legal) in the world.

Q. What is FPS ?

A. FPS stands for the Faster Payment Service, a new service introduced in June 2008 by most UK banks to speed up internet and telephone banking payments. Payments under £100,000 between two FPS accounts happen within a few seconds to a few hours, and the money arrives fully cleared in the receiving bank account, allowing you to withdraw it immediately.

Q. How long will it take to receive the money, once payment is agreed?

A. For GB Pounds - As long as your bank account is FPS enabled, you should normally receive the money within minutes of the other party (or the referee) authorizing payment to you through Transpact. There is a limit for FPS payments of a maximum amount of £100,000 per day, so if your payment is for more than this or cannot be made by FPS, then an urgent bank transfer will be made. For Euros - We pay using the SEPA payment protocol, which dictates that the money arrives cleared in your bank account next business day after payment. There is a maximum outgoing amount up to EUR 50,000 per SEPA payment per day. Other currencies use wire transfer to send money, and rely on its timescales.

Q. For what transactions can I use Transpact?

A. You can use Transpact for any transaction that involves payment of money. There are a multitude of uses, and we expect new services to spring up on the internet which were not possible before Transpact.

Q. Can I increase the Transaction Amount for a Transaction already underway on Transpact ?

A. Yes, as long as the transaction terms you have set and agreed make sense and give direction how to treat the additional transaction amount (otherwise you may find you have money orphaned in Transpact, with the referee having no direction who to transmit this additional money to and both sides claiming it). If the transaction terms do not satisfactorily allow for additional money to be added, then don't worry, just create a new transaction, and in the new transaction terms make it clear that this new transaction relates to and is connected to the first transaction.

Q. Are the conditions I agree with the other party on Transpact important ?

A. Yes, the conditions are crucial. These determine whether or not payment should be made and to whom, and will guide the referee’s decision should a dispute arise. So every word of the conditions is important and, since words are sometimes open to different interpretations, you will need to word the conditions carefully so that the referee is clear what has been agreed.

Q. I am using Transpact to pay for a transaction. Can I be scammed ?

A. If your conditions state or imply that payment will be made to the other party on a certain event and that event occurs, then payment will be made. So, for example, if you agree to buy worthless or low value shares for a high price, and agree to place payment in Transpact until you receive a share certificate, then you are quite capable of receiving a worthless share certificate at very high cost.
In such a case, if you chose the Transpact consumer protection clause option, you may possibly still be protected before you authorise payment to the other party at the end of the Transpact process. But once you authorise payment and the money is paid, then Transpact offers no further protection. So ensure that your conditions protect you in all eventualities, and the conditions do not force you to release payment until your safety has been assured.

Q. The other party insists I use their nominated referee. Should I use them ?

A. If you are uncomfortable with the choice of referee, do not go ahead. Should you come to a dispute, the nominated referee has to act fairly and impartially according to the Arbitration Act 1996. If you felt that the referee had not acted fairly, the onus would be on you to prove that the referee had in fact not acted impartially within reasonable bounds and you might find this very difficult. So you should only enter a transaction on Transpact if you have satisfied yourself that the referee chosen by the other party will conduct any necessary arbitration fairly and evenly and without bias.

Q. What are the cut-off times for payment ?

A. operates in the UK and according to UK working days (Monday to Friday, excluding bank holidays). For non-GBP transactions, bank holidays of the currency concerned are also treated as bank holidays and excluded from working days. Instructions (including completion of confirmatory procedures) must be completed by 2 pm on any working day, otherwise they will be treated as being received on the next working day. In many cases, we make payment almost instantly despite the above cut-off times, and we reserve the right to exceed these cut-off times for our customers' benefit.

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