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How We Protect Your Money

Convenient processes, competitive exchange rates, and fast payments might be guaranteed when you click the button to make your international payment online – but what about the safety and security of your money?

Protecting your hard-earned cash is our top priority, so it’s important that you’re aware of how we do this.

How do we do this?

The official term for how you protect your money is “Safeguarding”.

We’re an electronic money institution, rather than a bank. This means we don’t use your money for our own business purposes or lend it to other customers. 

When you transfer money to Lumon, we credit your account with electronic money (also known as e-money). You’re then able to use this to perform currency conversions or make payments.

Since the account you hold with us is an electronic money account rather than a bank account this means that your money isn’t protected by any compensation or guarantee scheme (such as the Financial Services Compensation Scheme in the UK and the Deposit Guarantee Scheme or the Investor Compensation Scheme in Ireland). 

To safeguard your account balance, when we credit your account with electronic money, we either:  

  • Hold an equivalent amount of money separate from our money and keep it in a segregated account with mainstream banks. 
  • Cover it with an insurance policy which offers equivalent protection.

Each year, we appoint an independent auditor to assess how we comply with safeguarding requirements set out by our regulators (the Financial Conduct Authority in the UK, and the Central Bank of Ireland in the EU). 

In the unlikely event of Lumon becoming insolvent, our safeguarding processes mean that your money would be protected from the claims of third parties. An insolvency practitioner would be appointed to return your money to you, less any administration costs for doing so.

Legal & Regulatory Obligations

Providing an international payments service like Lumon is an activity which requires regulatory authorisation, for reasons including ensuring consumer protection and stability of the wider financial services markets.

Lumon is regulated in both the UK and EU, the details of which can be found on our Legal Information page.

Therefore, when using Lumon’s services you know you’re working with an honest, accountable, and competitive business – and that your money is safeguarded. 

Lumon: your trusted currency partner 

Transferring your money online with Lumon isn’t just simple, it’s secure as well. We’ve established processes to protect your data and your online account. We’re committed to helping you conduct your international transactions as safely as possible and with confidence.