GlobalTips prioritizes security and compliance in managing money transfers. Here’s what we do to ensure our service model is correct and lawful, according to the Articles 5 and 6 of the Law on Payments of LithuaniaandEuropean directive PSD2
Legally, entities handling cashless tips and payments must possess a Payment Institution license. At GlobalTips, we process payments through Stripe (https://stripe.com/) which holds Electronic Money licenses in the EU, UK, and the US, and Montonio (https://montonio.com/), licensed by the Bank of Lithuania. Stripe also manages our clients’ accounts and payouts.
To comply with the law, we verify all fund recipients through Stripe when they register with our service. This includes collecting personal and business information, and necessary documents like IDs and proof of address. All provided documents are sent directly to Stripe and we do not store them.
Making direct payments from a company's account to individuals for tips or to venues for payments without a Payment Institution license is illegal. Therefore, we create Stripe accounts for each recipient, be they employees or venues. Funds must first be transferred to these Stripe accounts before moving to personal IBANs.
We provide clear information on all transactions, fees, and processes involved in our services.
We regularly update our practices to comply with the latest EU directives, including PSD2, which governs electronic payments across Europe.
Beware of services that offer to credit funds without verifying identities or opening accounts, asking only for an IBAN. This practice is illegal and risky and may result in the loss of your or your employees' funds.
Best regards,
The GlobalTips Team!
