What to do if your Wirecard has been frozen

Last week the Financial Conduct Authority (FCA) decided to freeze the operations of Wirecard Card Solutions Limited (Wirecard) after accounting irregularities were identified at its German parent company. The Fintech was responsible for powering the transactions and funds for a significant number of UK prepaid cards under a range of different brand names.
Those holding a card issued by Wirecard cannot currently access their funds, make transactions or use their card at a cash point, online or in a shop. The funds held on these cards are not covered by the Financial Services Compensation Scheme (FSCS) but Wirecard is required by the FCA to hold these funds in safeguarded accounts with a UK authorised bank or credit institution. This means the funds remain protected and separate to monies used by Wirecard for their day-to-day business.
While the money held on these cards is expected to be safe, cardholders remain waiting to hear when their funds will be released back to them. Those who have their benefits paid to cards issued by Wirecard will need to switch to an alternative prepaid card account or digital banking app and let the Department of Work and Pensions (DWP) know their new account details. Those who have had benefits paid to their Wirecard issued card on or before 26 June 2020 will find they cannot access their money now and the DWP is not able to reissue the payment. Those in financial distress as a result should contact the DWP.
Those due to receive benefit payments from 29 June 2020 onwards to card issued by Wirecard should receive a call from the DWP about the situation and the fact their benefit payment cannot reach their card. Any new payments may take up to three days to reach the new account.

There are many cards that have been affected by the restrictions on Wirecard, these include those used by consumers and businesses.

• Acorn
• Anna Money
• Arro
• Boon
• Brac Saajan
• Bread Card
• CardOneBanking
• Curve
• deVere
• First Premier
• iBux
• Loot
• Much Better
• Pockit
• Pure and Solid
• Tuxedo
• U Account

The FCA made a statement today that it continues to work with Wirecard and other international and UK authorities to make sure Wirecard can meet the conditions required to resume operations. When these conditions are met it is expected that cardholders will be able to access their funds. The regulator has confirmed that it will not lift the current restrictions until it is satisfied all clients’ money is safe. In the meantime, cardholders should continue to check the website of their card providers for updates on the current situation or call the FCA’s Consumer helpline.

Moneyfactscompare.co.uk has heard that Curve is already accelerating its plans to become a card issuer. The App service allows users to add multiple cards from different brands, Curve users with more than one card loaded up can choose to switch to an alternative payment method while their card is not working.     

A spokesperson from Curve said: "Following the shutdown of Wirecard Card Solutions Limited by the Financial Conduct Authority, Curve customers have today been informed that they are likely to see a temporary disruption to their service and are advised to carry an alternative payment method.

"In April, Curve announced we would bring more processes in house such as card issuing and e-money and move away from a reliance on Wirecard.

"This disruption is expected to last for a limited time only and we are focussed on completing this transition as quickly as possible."