Payment App: Understanding Client Money Handling and Clearing Times

This article explains how client money is handled when using the agentOS Payment App, including the clearing process and compliance with property mark regulations.

Client Money Flow

When payments are taken through the Payment App (via open banking, card payments through Barclays EPDQ, or other payment processors like GoCardless), the money follows a standard clearing process before arriving in your client account.

Key Points About Client Money Handling

1. Payment Processing, Not Third-Party Holding: The Payment App uses standard payment processing channels (clearing banks) to process transactions, not third-party holding accounts. Money does not generally remain in these accounts.
2. Clearing Times:
   • Open banking payments: Clear almost immediately
   • Card payments: Can take up to 3 days to be paid from Barclays to agentOS, then clear immediately to your client account
   • Funds typically move out the same day they come in once received by agentOS
3. Regulatory Compliance Across Major CMP Schemes: Different Client Money Protection (CMP) schemes have specific timeframes for banking client money. The major schemes include:
   • PropertyMark: Requires client money to be banked within three working days after receipt, as stated in their regulations: "A member's firm must bank all receipts of Client Money into an appropriate Client bank account within a maximum of three working days from the day on which it was received."
   • RICS (Royal Institution of Chartered Surveyors): Similarly mandates that client money must be banked within 3 working days of receipt, as specified in their Professional Statement on Client Money Handling.
   • UKALA (UK Association of Letting Agents): Requires members to bank all clients' money within 3 business days of receipt, per their accounting standards.
   • SafeAgent: Uses less specific language, requiring that "client monies received by cash or cheque should be paid in without delay" rather than specifying exact days.
   These timeframes recognize the practical reality of electronic payment processing and clearing periods. The specification of "working days" or "business days" (which excludes weekends and holidays) provides important flexibility for property agents when handling client money.

When Payments May Be Delayed

Payments may be temporarily delayed in two specific scenarios:

1. AML Checks: Payments over £3,000 trigger an Anti-Money Laundering check
2. Payment Reference Issues: Payments made directly to the account with incorrect reference information require reconciliation

In both cases, our team aims to reconcile and clear these funds promptly, always working to maintain a zero balance in processing accounts.

How Different Payment Methods Work

Open Banking Payments

Payments made via open banking are typically cleared almost immediately, transferring directly from the payer's bank account to your client account.

Card Payments

When a payment is made by card:

1. The transaction is processed through Barclays EPDQ
2. Can take up to 3 days to be paid from Barclays to agentOS
3. Once received, the money is immediately cleared to your client account

Comparison with Direct Bank Transfers

The Payment App's processing method follows the same principles as direct bank transfers, which also undergo a clearing process. The key difference is that the Payment App provides additional features like automated reconciliation, proper referencing, and detailed payment tracking.

Other Approved Client Money Protection Schemes

In addition to PropertyMark, RICS, UKALA and SafeAgent, there are other approved Client Money Protection schemes including:

• Money Shield
• Client Money Protect (CMP)
• NALS (Now SafeAgent)

Each scheme has their own specific client money handling requirements that members must follow.

Further Information

For more details about the Payment App, including fees and features, please refer to:

• Payment App & Card Payments Charges
• Website Payment App
• Payment App, Standing Orders App & Website Payments App

If you have any questions about client money handling or the Payment App, please contact our support team.