Jet Card Escrow Accounts

Our jet card escrow accounts provide all of the benefits to charterers but without the insolvency risks associated with traditional jet card programmes.
Jet Card Escrow Accounts
Jet Card Escrow Accounts

What is it?

A brief introduction to
Jet Card Escrow Accounts
Specialist Escrow & Payment Services
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Jet Card Escrow

Jet card escrow accounts offer an additional layer of financial security for all parties involved in jet card programmes. By engaging an independent escrow agent, funds are held securely until flight hours have been used, ensuring peace of mind for jet card purchasers, charter brokers, and operators alike.

What is a jet card?

A "jet card" (a predominantly American term) is a pre-paid programme gives purchasers priority access to private aircraft services without the long-term commitment of owning or leasing an aircraft. Customers purchase a set number of flight hours or a specific monetary value, which they can redeem for flights as needed, often at a lower price per hour than walk-up charter services.  In this way, brokers and operators can buy loyalty from charters, and charterers can be rewarded for their loyalty through lower charter costs.

Jet cards offer the convenience and flexibility of private aviation, tailored to the user's travel requirements, with the added bonus of predictable costs and, frequently, streamlined or priority booking processes.

Benefits of a Jet Card

The specific advantages of a jet card will depend on the programme, but jet cards generally provide numerous advantages, including guaranteed aircraft availability and consistent pricing.

Programmes often include discounts on premium services such as in-flight catering and dedicated customer support, either in relation to a specific aircraft, class of aircraft or fleet of aircraft, enhancing the overall travel experience.

Risks of a Jet Card

Despite their benefits, jet cards carry certain risks. Pre-paying significant sums can expose purchasers to financial loss if the broker/operator becomes insolvent or fails to deliver the promised flights.

There is also the potential for changes in terms and conditions, such as alterations in pricing, aircraft availability, or service quality. Lack of transparency regarding how funds are managed and protected can further compound these risks, leading to uncertainty and reduced confidence in jet card programmes.

Types of jet card

Jet cards come in various forms to suit different needs. They can be structured based on aircraft size—light, midsize, or large-cabin jets—or offered as a combination of categories. Some programmes provide fixed hourly charter rates, while others may have dynamic charter pricing influenced by factors such as peak travel times/dates or fuel costs.

Additionally, jet cards may differ in terms of geographic coverage, with some focusing on regional travel and others offering global access.

Traditional Jet Cards

Traditional jet cards typically involve direct payment to the jet operator or charter broker, with funds used at their discretion to provide flights.  These funds are 'prepaid', so generally belong to the operator or charter broker.

While this model offers convenience, it relies heavily on the provider's financial stability and integrity and their ongoing ability to make aircraft available for use. There is often limited protection for the purchaser's funds, and in the event of the operator or broker's financial difficulties, or technical difficulties within the aircraft fleet, purchasers may face challenges in recovering their money or securing the flights and services they paid for.

Escrow-Backed Jet Cards: Enhancing Financial Security

Increasingly, responsible charter brokers and operators are tending towards implementing escrow-backed jet cards.  This introduces an added layer of financial protection by engaging an independent third-party escrow agent to manage the funds.

The prepaid amounts are held in an escrow account in the purchaser's name, and only released to the operator or broker upon the successful delivery of flights.

This arrangement safeguards the purchaser's investment, whilst locking-in the loyalty that makes jet card programmes so attractive to brokers and operators, ensuring that they are compensated fairly, and promoting transparency throughout the transaction process.

In essence, by introducing escrow arrangements, all of the financial risks associated with traditional jet card programmes can be mitigated.

Our jet card escrow accounts

Our jet card escrow accounts are designed to provide secure and transparent management of prepaid funds. As a trusted escrow agent, we hold your funds in a dedicated account, releasing them incrementally as you use your flight hours/credit.

This ensures that your money is protected at all times, offering protection against the insolvency of your broker or operator. Our services are compliant with all relevant regulations, and through our online portal you can check on the balance of your card and all of your transactions at any time, 24/7.

Benefits for Jet Charter Brokers

For jet charter brokers, partnering with us enhances credibility and trust with clients. It demonstrates a commitment to financial transparency and customer protection, which can be a significant differentiator in a competitive market.

Brokers can reduce the risk of payment disputes and delays, streamline their financial processes, and focus on delivering exceptional flight experiences. Additionally, it can attract more clients who value the added security an escrow arrangement provides.

Benefits for Jet Fleet Operators

Jet operators like that escrow-backed programmes ensure prompt and secure payment for flights. The escrow arrangement reduces the risk of payment defaults and enhances cash flow management.

Operators can operate with greater confidence, knowing that money is available and will be disbursed upon fulfilling their contractual obligations. This can lead to stronger partnerships with brokers and clients, fostering long-term business relationships.

Advantages for Jet Card Purchasers

Jet card purchasers gain significant peace of mind from escrow-backed arrangements with all of the benefits of a jet card in the traditional sense, with one key improvement: Their money is protected until they receive the agreed-upon flight services, mitigating the risk of financial loss due to provider insolvency or non-performance.

The transparency of the escrow process builds trust, allowing purchasers to commit to significant prepayments and bulk-purchases of flight hours (and the attendant cost and time savings) with confidence. This security enables them to enjoy the convenience and luxury of the private jet travel experience without undue concern over financial risks.

How Jet Card Escrow Works

The jet card escrow process involves an independent escrow agent who holds the jet card money in a secure third-party account for a period of time until it has all been used up.

When a flight is requested and completed, the operator or broker confirms delivery, and the escrow agent releases the corresponding payment to them.

This cycle repeats with each flight until the prepaymentis all used up. The arrangement ensures that payments align precisely with flights provided, but also that the flights are promptly paid for.

The Escrow Process

  • We agree the escrow agreement with the charter broker or fleet operator.
  • The client deposits the escrow sum with us, whereupon we confirm to the charter broker/operator that the money is available for use.
  • Each time a flight is contracted, we 'block' the relevant sum (based on the agreed quote plus a contingency for extras) in the account until the charter has or has not been performed, whereupon the charter broker/operator will invoice the escrow account for the flight (or cancellation fees).
  • We then release the payment to the supplier promptly.
  • This is repeated until the balance is used up.

Security and Transparency Features

Our escrow services prioritise security and transparency at every stage.

Funds are held in segregated accounts with reputable financial institutions (GBP funds are held at the Bank of England), ensuring they are segregated (kept separate) from our own operational funds and safeguarded (not used by the underlying bank for its own investment/lending activity), so they will always be available to the purchaser even in the unlikely event of our own insolvency.

All transaction records are available through our portal, offering clear visibility into the balance and breakdown of any charges.

Jet Card Escrow Accounts

Escrow Information

Detailed information about our
Jet Card Escrow Accounts
Accounts
Jet Card Escrow Accounts
Who is this for?
Service Overview
How it Works
1) Parties agree and sign an escrow agreement. 2) Client sends funds to our dedicated safeguarded account. 3) We verify all instructions and parties. 4) When the release condition is met, funds are disbursed. 5) Parties receive confirmation and final statements
Minimum Requirements
Key Risks
- Someone could pretend to be entitled to payment. We perform Confirmation of Payee checks on all payees and use micro-transactions to verify bank details where prudent. - False release requests. Someone could send us a fake release instruction. We verify all release instructions using a second method. - Dispute delay. The other party might dispute that the conditions for release have been achieved. If that happens, we will hold the funds safely until that dispute has been resolved.
Compliance
We are required to carry out compliance on all parties to the arrangements, including understanding their source of funds and source of wealth.
What you need to provide
- A signed escrow agreement - A copy of your signed Party Wall Award - Proof of ID (KYC) of all trustees - Details of the release condition(s) - Email/telephone information for release confirmation
Interest
Our accounts do not pay interest. We hold your funds safeguarded and segregated, and they are protected 100% (including above the £85,000 FSCS limit), because they are held on trust for you and are kept liquid an unencumbered at the Bank of England. Unlike other escrow providers whose banks lend out deposited sums, your funds will simply sit there safely.

We carry significant overheads to maintain our regulatory status, carry out all of our initial and ongoing compliance and to rent the facility to open accounts for your funds at the bank.  While we do receive a small amount of interest on your deposits, we use this interest to subsidise and support the costs of providing the service.  Regrettably, we are not able to pass on any interest on your deposit.

Some of our clients choose to make a simultaneous deposit in our zero-risk, high-interest Cash Deposit Manager accounts in order to defray the costs of the account - we can help you to calculate the required deposit to either get your escrow arrangements for free, or to even earn money during their term.
Discover our zero-risk, high-interest Cash Deposit Manager Accounts
Jet Card Escrow Accounts

Frequently Asked Questions

Frequently Asked Questions about
Jet Card Escrow Accounts
Jet Card Escrow Accounts

Why dospay?

Why choose dospay for your
Jet Card Escrow Accounts
Account?

FCA-Regulated

We're regulated by the Financial Conduct Authority for the provision of payment services.

Digital Accounts Portal

Access your account, view your transactions and documents and provide read-only access to all of your relevant stakeholders.

White-Glove Service

Your named account manager can help you manage your accounts at any time, by email, phone or WhatsApp.

High-Speed Account Opening

We can open escrow accounts in as little as a day - our systems and processes are built for speed.

Ultra-Secure Deposits

We deposit all pound sterling sums at the Bank of England, offering the lowest-risk escrow service in the United Kingdom.

Any duration, any value

We can hold funds for as little as a few hours, for many years, or even longer depending on your specific requirements.

What our clients say

Don't just take our word for it - hear from our clients who have added trust and security to their escrow and payment requirements.
Bespoke Pricing

Bespoke Escrow / Third-Party Managed Account Pricing

Because almost all of our escrow and third-party managed accounts are built and tailored to your exact requirements, it is impossible to give an accurate price without understanding more about your requirements. Below, however, we set up how an escrow price is built up, so that you can understand the process.

Please note our minimum escrow fee (made up of the elements below) is £5,000 +VAT.
Compliance Fees
We charge a compliance fee for every escrow arrangement. This allows us to ensure that we are compliant with the various responsibilities we have as a money service business, including carrying out our know-your-client checks; establishing the source of funds/source of wealth being used for the arrangements; and carrying out our ongoing monitoring requirements.
Escrow Agreement Fees
Our document fees allow us either to propose the terms of the escrow agreement or to review the terms that our clients put forward. All of our quotes include for the provision of an escrow agreement that will govern how we hold client funds and the basis upon which we are permitted to release them or return them to the paying party.

Some clients, however, prefer to put forward their own detailed escrow agreement, in which case we use this portion of the fee to review the proposed terms, ensure that we are comfortable them and propose any amendments we need to ensure that we remain compliant and sustainable.
Monthly Management Fee
Our monthly management fee is the time-related charge, allowing us to ensure that you can have access to an escrow agent or account manager for the duration of your escrow arrangements.  It also covers some of the overhead of our account portal through which you can view and administer your transaction 24/7.
Additional Party Fees
Some accounts, in particular Project Bank Accounts, allow for additional payees to 'sign up' to join the arrangements. For those accounts, we charge a modest administration fee to provide the relevant documentation and enable access to those additional parties.
Escrow Agent Fee
The escrow agent fee is the value-based fee that we charge for carrying out the arrangements; this is the contribution to our overheads and profit and is generally calculated as a percentage of the funds we are handling. For the largest transactions, this tends towards around 1% of the value of funds we hold.

Request a Quote

We'll be happy to provide you with a free, no-obligation quote. Generally, these get turned around in less than 24 hours. In the meantime, if you can't wait, why not Book a Video Call to speak with one of our team?
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