Digital Capital Ltd
Digital Capital is currently pre-operational and does not provide live services or hold customer funds. Operational descriptions state the proposed requirements for a service once activated; they are not a certification that those arrangements are already implemented.
1.1 This document explains your rights and obligations in relation to:
fraud
unauthorised payments
reimbursement
1.2 It forms part of the Account and Payment Services Agreement.
1.3 This document explains rights and reporting arrangements for Digital Capital's planned GBP e-money and domestic payment package for eligible UK hospitality businesses. Digital Capital is currently pre-operational. The package includes outgoing Direct Debit payments and incoming CHAPS; it does not include card services, outgoing CHAPS or international payments.
2.1 The purpose of this document is to:
provide clarity on fraud-related risks
explain how unauthorised transactions are handled
set out your responsibilities
describe our obligations
Fraud may include, but is not limited to:
3.1 Account takeover
unauthorised access to your account
misuse of credentials
3.2 Payment fraud
manipulation of payment instructions
impersonation scams
3.3 APP fraud (Authorised Push Payment)
where you are deceived into making a payment
social engineering scams
3.4 Identity fraud
use of false or stolen identity information
4.1 You must:
keep your credentials secure
not share authentication details
use services responsibly
You must:
protect passwords and PINs
secure devices
avoid phishing and scams
6.1 You must notify us immediately if:
you suspect fraud
your account is compromised
6.2 For current enquiries contact info@digi-capital.co.uk. Before activation, the service schedule must identify the tested urgent fraud and loss-reporting channels, including the required continuously available reporting method. Do not send passwords, full security credentials or one-time codes by email.
7.1 Tell us without undue delay after becoming aware of an unauthorised or incorrectly executed payment, and ordinarily no later than 13 months after the debit. The 13-month limit does not apply where we failed to provide or make available the transaction information required by law. Do not wait for a merchant, police investigation or chargeback before notifying us.
8.1 You must cooperate with investigations, including:
providing information
submitting documentation
9.1 The effect of a breach depends on the particular statutory test. Ordinary carelessness, a missed warning or incomplete paperwork does not automatically remove rights. The specific rules in sections 16–21 and 37–42 apply, including the burden of proof and relevant vulnerability protections.
10.1 We may implement:
transaction monitoring
authentication controls
account restrictions
11.1 We may apply controls based on:
transaction behaviour
risk profile
regulatory requirements
12.1 We may:
delay transactions
block payments
suspend accounts
12.2 We may block a payment instrument for objectively justified reasons relating to its security or suspected unauthorised or fraudulent use, and take restrictions required by law. We will tell you of the block and reasons in the agreed manner before it, or immediately afterwards if advance notice is not possible, unless disclosure would compromise objectively justified security reasons or is unlawful. We will unblock it or replace it once the reasons cease. Account termination follows the separate termination provisions; a temporary block does not remove safeguarding, refund, redemption or complaint rights.
13.1 We may contact you regarding:
suspicious activity
verification requests
14.1 Fraud prevention measures may:
affect transaction speed
result in declined payments
14.2 For a domestic electronic GBP payment, the ordinary maximum execution time is the end of the Business Day after receipt of the order. Where the conditions of PSRs regulation 86(2A)–(2D) are met, we may delay execution to investigate reasonable grounds to suspect fraud or dishonesty by someone other than you. Those grounds must be established by the end of the following Business Day. The delay must last no longer than necessary and never beyond the end of the fourth Business Day after receipt. Unless unlawful, we will notify you as soon as possible and by the end of the following Business Day of the delay, reasons and required information or action. We will reimburse interest or charges for which we are liable under regulation 94A. A general operational delay does not create this extension.
15.1 A payment is unauthorised where the required consent was not given in the agreed form. A fraudulently initiated payment may be unauthorised, but a payment you consented to because of deception may instead be an APP scam. We assess the evidence and the relevant legal category rather than relying only on the presence of authentication.
16.1 Tell us without undue delay after becoming aware of an unauthorised or incorrectly executed payment, and ordinarily no later than 13 months after the debit. The 13-month limit does not apply where we failed to provide or make available the transaction information required by law. Do not wait for a merchant, police investigation or chargeback before notifying us.
16.2 We consider any reporting delay under the precise statutory rules, including whether required transaction information was supplied. A delay is not an automatic reason to reject every claim.
17.1 Where a payment was not authorised, we will refund it as soon as practicable and no later than the end of the Business Day after we become aware of it, and restore the account, including the correct credit value date no later than the original debit date. The statutory exception to that timing applies only where we have reasonable grounds to suspect fraud by you and notify those grounds in writing to the authority specified in regulation 76(3) of the Payment Services Regulations 2017. An ordinary investigation or pending recovery from another provider is not itself a basis to delay a required refund.
17.2 The deadline is not postponed merely because a chargeback, police enquiry or third-party recovery remains open. Any applicable statutory exception must be individually established.
18.1 We must demonstrate that a disputed payment was authenticated, accurately recorded and unaffected by a technical breakdown or other deficiency in our service. Use of credentials, a device or authentication is not, on its own, sufficient proof of consent, fraud or intentional or grossly negligent breach of security duties. We will assess the evidence and provide supporting evidence where we allege fraud or gross negligence.
19.1 We may reject an unauthorised-payment claim only on a legally supported basis, including evidence that the payment was authorised or that the specific customer-liability rules apply. If the payment was authorised under deception, we separately consider APP reimbursement; authorisation does not end that enquiry.
20.1 Before notification, liability for certain losses from a lost, stolen or misappropriated payment instrument is limited to £35. That liability does not apply where the loss, theft or misappropriation could not reasonably have been detected before the payment, except where you acted fraudulently, or where it was caused by our employee, agent, branch or outsourced provider. You may bear all losses where you acted fraudulently or intentionally or with gross negligence breached the applicable security or notification duties. Ordinary carelessness is not automatically gross negligence. Except for your fraud, you are not liable for relevant losses after notification, where we failed to provide appropriate means to notify us, or where we did not require strong customer authentication when required. The applicable statutory protections also apply to qualifying distance contracts. We must establish the legal basis for any customer liability; a security failure does not automatically remove refund rights.
20.2 In all other cases, liability is limited in accordance with applicable law.
21.1 We assess the security event, consent, authentication and the cause of loss, including any failure by us or our providers. We must establish any alleged customer fraud, intentional breach or gross negligence under the applicable test. A technical security event alone does not allocate all liability to you.
22.1 A transaction is authorised when you give the required consent. Completion of authentication alone does not establish consent in a disputed transaction.
22.2 Authorised transactions are not considered unauthorised, even if:
you later dispute the outcome
you were dissatisfied with the transaction
23.1 You may be entitled to a refund for certain authorised payments where:
the amount was not known at the time of authorisation
the amount exceeds what could reasonably have been expected
23.2 For the initial package, relevant payee-initiated payments include outgoing Direct Debits. The statutory refund conditions in section 23.3 and the separate Direct Debit Guarantee in section 23.4 apply according to their respective scope. Card payments are not part of the initial package.
23.3 For the statutory payee-initiated refund under regulations 79 and 80, request it within eight weeks after debit. We will refund or give a reasoned refusal and redress information within ten Business Days. We assess both the unknown-amount and reasonable-expectation conditions and any lawful exclusion; an exchange-rate movement alone does not establish entitlement.
23.4 Outgoing Direct Debit payments are covered by the Direct Debit Guarantee. An error in a collection by the collecting organisation or the account provider gives rise to a full and immediate refund under the Guarantee. Contact us promptly so we can arrange the claim. A refund paid in error may have to be repaid. You can cancel a mandate through the agreed channel and should also notify the collecting organisation. Cancellation does not cancel a separate contract or amount you owe. The Guarantee and statutory unauthorised-payment and other refund rights are separate; the eight-week statutory process does not limit a Guarantee claim.
24.1 You must provide:
transaction details
supporting information
24.2 We may request additional documentation.
25.1 Different claims have different deadlines: unauthorised or incorrectly executed payments ordinarily require notification without undue delay and within 13 months of debit; an eligible authorised payee-initiated refund must be requested within eight weeks; an FPS APP scam claim must be reported promptly and within 13 months after the final scam payment in the claim. Scheme chargeback deadlines are separate and will be explained for an enabled card programme.
25.2 The statutory information exception and other legal qualifications apply. We will identify the relevant rule and reason if we say that a claim is late; a generic “reasonable timeframe” does not replace these deadlines.
26.1 We will investigate:
transaction data
authentication records
device and session data
third-party information
27.1 We may provide provisional refunds while investigations are ongoing.
27.2 Such refunds may be reversed if:
the claim is not upheld
27.3 A mandatory statutory refund is not a discretionary provisional credit. We distinguish a scheme credit from a legal refund and explain its status. An adverse chargeback outcome does not itself prove that a statutory refund was not owed.
28.1 We reverse or recover a payment only where there is a proper legal and evidential basis, such as a genuine duplicate reimbursement or an amount not lawfully due. We explain the amount and basis and provide complaint rights where lawful; we do not reverse a statutory refund merely because recovery from another provider failed.
29.1 Investigations may involve:
banks
payment schemes
merchants
29.2 Third-party enquiries do not automatically extend the refund or complaint timetable. Any permitted FPS stop-clock must meet scheme conditions and the overall 35-Business-Day outcome limit.
30.1 If a claim is found to be fraudulent, we may:
reject the claim
take further action
report to authorities
31.1 If you disagree with the outcome:
you may raise a complaint
you may escalate to the Financial Ombudsman Service
31.2 Complaints are free. Contact info@digi-capital.co.uk or write to Digital Capital Ltd, 3rd Floor, 86–90 Paul Street, London, EC2A 4NE, England. We acknowledge complaints promptly and explain the applicable timetable. For payment-services and e-money complaints within the relevant rules we provide a final response within 15 Business Days; only exceptional circumstances beyond our control permit a holding response explaining the delay and a final response by 35 Business Days. For other complaints subject to the standard DISP timetable, by eight weeks we send a final response or the required written explanation of delay and FOS referral information. Eligible complainants may refer to the Financial Ombudsman Service after our final response or when the applicable response deadline expires, normally within six months of our final response. See our Complaints Policy for eligibility and contact details.
32.1 This section reflects applicable regulatory requirements.
32.2 Where required by law, regulatory provisions take precedence.
33.1 APP fraud occurs where:
you are deceived into authorising a payment
the payment is made voluntarily but under false pretences
33.2 This may include:
impersonation scams
invoice fraud
investment scams
social engineering
34.1 APP fraud involves consent obtained through deception. Authentication may be completed, but authentication alone does not decide whether consent existed or which reimbursement regime applies.
34.2 As a result, APP fraud is treated differently under applicable law.
35.1 You must take reasonable steps to:
verify payment details
confirm recipient identity
exercise caution when instructed to make urgent payments
35.2 You should be particularly cautious where:
payment instructions are changed unexpectedly
requests are made under pressure
communication appears suspicious
36.1 We may implement measures to prevent scams, including:
transaction warnings
confirmation prompts
additional authentication steps
payment delays
36.2 You must consider such warnings carefully before proceeding.
36.3 Warnings and Confirmation of Payee, where enabled, are preventative tools. We must assess a warning’s content, specificity and the actual circumstances. Ignoring a warning is not automatically gross negligence or a reason to deny mandatory reimbursement.
37.1 You must notify us immediately if you suspect:
you have been scammed
a payment was made under deception
37.2 Early reporting increases the likelihood of recovery.
37.3 For an eligible FPS APP claim, the reporting deadline is no later than 13 months after the final payment in the scam claim. We ask you to report promptly after becoming aware and take account of support needs and the applicable vulnerability rules.
38.1 We will investigate APP fraud cases, including:
reviewing transaction details
analysing communication patterns
contacting receiving institutions where possible
38.2 Investigations may involve third parties.
38.3 We may ask for information reasonably needed to assess the scam, payments, recipient, customer eligibility, vulnerability and any applicable exception. We explain requests and provide an accessible way to respond. A pause is used only for a purpose permitted by the rules, and we keep you informed; the claim must have an outcome within 35 Business Days.
39.1 We may attempt to recover funds where possible.
39.2 Recovery depends on:
timing of the report
recipient account status
cooperation of third parties
39.3 Recovery is not guaranteed.
39.4 Repatriation and mandatory reimbursement are separate. If your claim is eligible we do not wait for the receiving provider to return funds or pay its inter-provider contribution. Recoveries and prior repayments are accounted for so that the same loss is not compensated twice.
40.1 For eligible UK Faster Payments APP scam claims, mandatory reimbursement covers qualifying individuals, micro-enterprises and charities under the scheme rules, including an eligible business customer. The maximum mandatory reimbursement is £85,000 for a claim, including linked scam payments. Tell us promptly and no later than 13 months after the last scam payment in the claim. We will normally reimburse within five Business Days; a permitted information-gathering pause may apply, but we must reach an outcome within 35 Business Days. Reimbursement does not depend on first recovering money from the receiving institution.
40.2 Eligibility includes natural persons acting outside a trade or business, micro-enterprises and qualifying charities under the rules. A micro-enterprise generally has fewer than ten persons and annual turnover and/or annual balance-sheet total not exceeding €2 million, applying the relevant enterprise-linkage rules; a qualifying charity has annual income below £1 million. The initial product admits business customers only, but a micro-enterprise can qualify. Larger businesses do not become eligible merely because they use an e-money account.
40.3 The payment must fall within the mandatory FPS scheme, including the qualifying UK accounts and payment scope, and have been made on or after 7 October 2024. We assess the facts and explain any exclusion. Incoming CHAPS is supported; outgoing CHAPS is not offered. A sender's CHAPS scam reimbursement claim is normally made to the sender's payment provider under the applicable CHAPS arrangements. If a CHAPS receipt into your account appears suspicious or is disputed, contact us promptly. We will cooperate with the relevant providers and apply lawful investigation, restriction and correction processes. Receipt of a CHAPS payment does not create an outgoing-payment reimbursement promise by Digital Capital.
41.1 No APP reimbursement excess applies under the current Digital Capital tariff. The standard-of-caution exception does not apply where your vulnerability materially affected your ability to protect yourself from the scam. The remaining scheme eligibility, evidential and gross-negligence requirements continue to apply. We may rely on the standard of caution exception only where we establish gross negligence in meeting the relevant requirements: having regard to specific warnings, reporting promptly, responding to reasonable and proportionate information requests, and reporting to the police or consenting to us reporting on your behalf if requested. This is a high threshold; ignoring a warning or failing to take ordinary care does not automatically defeat a claim.
41.2 The scheme does not cover your own fraud or collusion, civil disputes without fraud, transfers to an account you control, international transfers, or card, cash and cheque payments. Other scheme exclusions are applied only where their actual conditions are met. We explain why an exclusion applies and consider other available legal or complaint rights; we do not treat a disputed purchase as a civil dispute without considering evidence of fraud.
42.1 APP fraud cases may involve:
payment scheme processes
interbank cooperation
42.2 Inter-provider processes do not make a qualifying customer’s right discretionary. We remain responsible for the required customer decision and reimbursement timetable and explain the complaint route if you disagree.
43.1 We may take immediate action where fraud is suspected, including:
blocking transactions
freezing accounts
restricting access
43.2 Advance notice may be omitted only where the applicable legal or objectively justified security conditions allow; required information is provided afterwards in accordance with section 43.3, and restrictions are reviewed.
43.3 We may block a payment instrument for objectively justified reasons relating to its security or suspected unauthorised or fraudulent use, and take restrictions required by law. We will tell you of the block and reasons in the agreed manner before it, or immediately afterwards if advance notice is not possible, unless disclosure would compromise objectively justified security reasons or is unlawful. We will unblock it or replace it once the reasons cease. Account termination follows the separate termination provisions; a temporary block does not remove safeguarding, refund, redemption or complaint rights.
44.1 We may apply restrictions where:
fraud risk is identified
investigations are ongoing
44.2 Restrictions may include:
payment limitations
account suspension
44.3 Restrictions are reviewed and removed when their lawful grounds cease. Account closure, notice and redemption are governed by the Account Agreement; an investigation does not give an indefinite discretion to retain funds.
45.1 We may:
report fraud to authorities
share information with regulators
45.2 This may occur without your prior consent where required by law.
46.1 We aim to support customers affected by fraud.
46.2 Support may include:
guidance
investigation updates
assistance with reporting
46.3 We consider health, life events, resilience, capability and other support needs of the person affected, including a business representative. With appropriate data safeguards, we agree useful adjustments such as a representative, clearer explanations or alternative channels. For APP claims we assess whether vulnerability materially affected protection from that particular scam; we do not require the customer to use a particular label to receive support.
47.1 We may provide information to help customers:
recognise scams
avoid fraud
48.1 The outcome of a fraud investigation will depend on:
evidence available
applicable law
regulatory requirements
48.2 Our decision may be subject to review through the complaints process.
49.1 The pilot tariff-fee refund is separate from payment fraud, unauthorised-payment, Direct Debit and APP reimbursement rights. You do not need to close your account to report fraud, dispute a payment or exercise a statutory refund right. The pilot closure request does not postpone a different legal refund deadline.
49.2 If you request closure of your overall Digital Capital account during the pilot, our pilot tariff-fee refund covers all base subscription, savings and incoming CHAPS fees actually charged during your participation. Payment is due within 10 working days of the request; later-posted qualifying charges are also covered. See the Fees and Limits Schedule for full terms. These rights do not replace any separate statutory refund, complaint or redress rights.