Electronic Money Terms

Version 1.0
Effective Date: [Add Date]

Introduction

These Electronic Money Terms apply to any part of your Evolution account or services that involve the issuing, holding, or redeeming of electronic money (“e-money”).
These Terms apply only if Evolution provides e-money services in your region. If your entire balance is treated as a bank deposit, these Terms may not apply.

E-money is governed by EU electronic money regulations and differs from bank deposits in certain ways. These Terms explain those differences.

1. What Electronic Money Is

Electronic money is a digital representation of funds stored in your Evolution account.
It is issued at the moment you:

Add money
Receive a transfer
Convert currencies
Receive funds from another Evolution customer

Electronic money is always issued at par value.
One euro in e-money always equals one euro in fiat currency.

E-money is not a deposit and does not earn interest.

2. Where Electronic Money Is Used

Electronic money may be used for:

Card payments
Transfers to other Evolution users
SEPA or international transfers (where supported)
Purchases or subscriptions
FX conversions
Funding accounts for additional features

E-money may be converted automatically into fiat currency when you withdraw funds, send external transfers, or make card transactions.

3. Safeguarding of Electronic Money

If e-money is used, Evolution must safeguard e-money funds according to EU rules.
Safeguarding may involve:

Holding the equivalent value in segregated accounts
Investing funds in low-risk secure assets
Keeping customer funds separate from Evolution’s own money

Safeguarded funds are protected from creditors in the event of insolvency.

E-money is not protected by the Deposit Guarantee Scheme unless converted to a deposit in a regulated banking product.

4. Adding Funds

When you add funds to your account:

We issue e-money equal to the value of the funds received
The funds may appear instantly or after settlement
Funding methods depend on your region and account type

Funding sources may include:

Bank transfers
Card top-ups
Incoming payments from other customers

We may set limits or require verification depending on your risk profile.

5. Redeeming Electronic Money

You may redeem e-money at any time.

Redemption occurs when you:

Withdraw funds to a bank account
Send money externally
Close your account
Convert e-money into a supported deposit product (if available)

Redemption is always at par value.
We do not charge fees for redemption unless conditions in the Fees and Charges Schedule apply.

6. Limits and Restrictions

We may apply limits to e-money accounts including:

Balance limits
Top-up limits
Withdrawal limits
Transaction limits
Currency limits

Limits depend on:

Your verification status
Regulatory requirements
Risk assessment
Plan type

We may refuse to issue or redeem e-money if required by law, sanctions rules, or compliance obligations.

7. Using Electronic Money for Payments

You may use e-money to:

Send transfers
Make card payments
Fund digital wallet transactions
Pay subscriptions
Convert currencies

When you make an external transfer or card payment, we may convert e-money to fiat currency automatically.

Processing times depend on the payment type and network.

8. Unauthorised Transactions

If you notice a payment you did not authorise, inform us immediately.

Refund rules follow the same standards as bank payment services, including PSD2 requirements.
We may refund unauthorized payments unless:

You acted fraudulently
You failed to protect your credentials
You intentionally allowed another person to use your account

You may be liable for up to 50 euro if your card or device was lost or stolen before you informed us.

9. Compliance Requirements

We may request additional information before issuing, redeeming, or transferring e-money.
We must comply with:

AML and CTF laws
Sanctions screening
Fraud monitoring
Source-of-funds checks

We may block or delay e-money usage if suspicious activity is detected.

10. Account Freezes and Reviews

We may temporarily freeze or limit e-money functions if:

We need to verify your identity
We detect unusual or high-risk transactions
A regulator requests information
Sanctions rules apply

We aim to restore access once the review is complete.
In some cases, we are legally not allowed to explain details of the freeze.

11. Interest and Returns

Electronic money does not earn interest.
It is not a savings or investment product.
If your account includes savings features, separate terms will apply.

12. Ending the Electronic Money Service

You may stop using e-money services by:

Closing your Evolution account
Withdrawing your balance
Moving funds to a deposit account (if available)

We may end the service by providing advance notice when required by law.

E-money will be redeemed before closure.

13. Changes to These Terms

We may update these Terms in response to:

Regulatory changes
Product updates
Operational improvements

Where legally required, we will notify you before changes take effect.

Continued use of Evolution e-money services means you accept the updated Terms.

14. Contact Information

If you have questions about e-money or these Terms, contact:

Evolution Ltd
[Registered Address]
[Support Email]
[Website]