Jet Card Escrow

Jet Card Escrow is a way to hold funds safely when a buyer purchases a jet card or similar aviation service agreement.

Instead of paying the full amount directly to the provider, an agreed sum is paid into an independent escrow account. The funds are held there and released only when agreed conditions are met (usually, flights are taken).

This protects both the jet card holder and the provider. It gives the buyer confidence that funds will be used as intended and not exposed to the operator's creditors in case of their insolvency, and the operator confidence that funds are committed.

Jet Card Escrow is suitable for individuals and organisations buying prepaid flight hours, jet card programs, fractional ownership deposits or other high-value aviation service credits.

It is also relevant for brokers, corporate flight departments, charter operators and advisors involved in structuring these arrangements.

Escrow is particularly useful where significant prepayment is required before services are delivered, or where regulatory or credit requirements apply.

Jet Card Escrow is usually put in place at the point where payment is due but before the jet card or service rights are fully delivered.

It may be used when a buyer deposits funds for future flights, locked-in hourly blocks or runway access. It may also be used where escrow strengthens the buyer’s or provider’s confidence in timing and performance of services.

Because jet card arrangements can involve substantial prepayment for future services, escrow helps manage timing risk while both sides complete the necessary steps.

Jet Card Escrow does not replace the jet card agreement, charter contract or service terms. Those documents continue to govern how flights are scheduled, delivered and paid.

The escrow agreement sits alongside the service agreement and deals only with how funds are held and released. Release conditions usually reflect key steps in the service arrangement, such as initial delivery of the jet card, confirmation of service availability or achievement of agreed milestones.

The escrow agent does not interpret the jet card terms or decide on entitlement. It holds and releases funds strictly in line with the agreed escrow terms.

The primary benefit of Jet Card Escrow is protection. Funds are set aside for a specific purpose and cannot be used for anything else.

Escrow provides a neutral holding mechanism that sits outside the control of both buyer and provider. Funds are released only when the agreed conditions are satisfied.

This creates a clear and predictable framework for managing prepaid aviation services and reduces the risk of misunderstanding or misuse of funds.

Benefits for jet card holders and buyers

For jet card holders, escrow provides confidence that prepaid funds are protected.

Money is not released until the agreed service conditions are met, such as confirmation of the jet card, service availability or delivery of agreed benefits. This reduces the risk of paying in advance for services that are delayed or not delivered as expected.

Escrow can also provide comfort where buyers are committing funds across multiple flights or over an extended period.

Benefits for jet card providers and operators

For providers and operators, Jet Card Escrow demonstrates that buyer funds are committed and ring-fenced for the service.

This allows providers to plan aircraft availability, crew and operations with greater certainty. Funds held in escrow reduce the risk of late payment or withdrawal once services have been allocated.

Escrow can also support stronger governance and clearer separation between operational funds and prepaid client balances.

Benefits for brokers and advisors

For brokers and advisors, Jet Card Escrow provides a clear and neutral way to manage prepaid funds without holding client money directly.

Escrow reduces the risk of disputes about payment timing and protects advisors from being drawn into financial disagreements between buyers and providers.

It also provides a transparent audit trail, which can be helpful when advising clients on high-value aviation arrangements.

Jet Card Escrow can be structured in different ways, depending on how the jet card or prepaid service is designed.

In some arrangements, the full jet card amount is paid into escrow at the outset and released once the card or service entitlement is confirmed. In others, funds are released in stages, for example as flight hours are credited or made available.

Escrow can also be used to hold funds for rolling or replenishable jet card programmes, where balances are topped up over time rather than paid in a single amount.

Yes. Jet Card Escrow arrangements are often tailored to reflect how services are delivered and paid for.

Release conditions can be linked to specific events, such as confirmation of flight availability, allocation of aircraft time or delivery of agreed service milestones. Funds may be released in tranches rather than all at once.

Escrow can also be combined with other arrangements, such as usage reporting or periodic reconciliation, where buyers and providers want additional transparency over how prepaid funds are applied.

All escrow arrangements are administered through the dospay digital escrow portal.

The portal provides a single place where authorised parties can view account balances, payment history and escrow status. It also supports the submission and tracking of information required for payments or releases, in line with the escrow agreement.

Using a digital portal reduces reliance on email chains and manual reconciliation. It improves transparency and creates a clear audit trail for payments and releases. Advisors often find this helpful when reviewing payment history or responding to queries during the life of the project.

In practice, Jet Card Escrow works by holding prepaid funds independently while the service arrangement is put into effect.

The buyer pays the agreed amount into escrow. The funds remain held while the jet card or service entitlement is confirmed and made available.

As agreed conditions are met, funds are released from escrow to the provider. If conditions are not met, or if there is a pause or change in the arrangement, the funds remain held until the agreed process is followed.

Jet Card Escrow does not replace the jet card agreement, charter contract or service terms. Those documents continue to govern how flights are scheduled, delivered and paid.

The escrow agreement sits alongside the service agreement and deals only with how funds are held and released. Release conditions usually reflect key steps in the service arrangement, such as initial delivery of the jet card, confirmation of service availability or achievement of agreed milestones.

The escrow agent does not interpret the jet card terms or decide on entitlement. It holds and releases funds strictly in line with the agreed escrow terms.

Only parties authorised under the escrow agreement can give instructions to the escrow agent. This is agreed at the outset and documented clearly.

Instructions are usually tied to specific events, such as the issue of a certificate, confirmation of a milestone or the occurrence of a payment default. The escrow agent checks that the instruction matches the agreed conditions before acting.

This approach ensures that payments are controlled, predictable and not dependent on informal requests or unilateral decisions by one party.

Only parties authorised under the escrow agreement can give instructions to the escrow agent. This is agreed and documented at the outset.

Instructions are typically linked to specific events, such as confirmation that the jet card has been issued, flight hours have been credited or agreed milestones have been reached.

The escrow agent checks that instructions match the agreed conditions before releasing funds. Informal or unilateral requests are not accepted.

Below is a practical view of the steps that parties typically follow when using Jet Card Escrow.

1. ‍Buyer pays funds into escrow
   The buyer pays the agreed jet card or prepaid service amount into the escrow account.‍
2. Funds held while services are activated
   Funds remain held while the jet card is issued, services are confirmed and any initial conditions are satisfied.‍
3. Release funds in line with agreed milestones
   As agreed conditions are met, funds are released from escrow to the provider. This may happen in stages rather than all at once.‍
4. Monitor balances and usage
   Balances and releases can be tracked through the digital escrow portal, giving visibility over remaining prepaid funds.‍
5. Handle changes or disputes if they arise
   If there is uncertainty or disagreement, funds remain held while the agreed process is followed.

Setting up a Jet Card Escrow account starts with understanding how the jet card or prepaid service is structured. This includes the amount to be paid, whether funds will be released in stages, and what conditions apply to each release.

Once this is agreed in principle, an escrow agreement is prepared. This document sits alongside the jet card or service agreement and sets out how funds will be held and released.

At the same time, we begin the account opening and onboarding process so the account is ready to receive funds when payment is due.

The time needed to open a Jet Card Escrow account depends on the parties involved and the structure of the arrangement.

For straightforward jet card purchases, account opening can usually be completed within a short period once the required information has been provided and the escrow agreement is agreed. More complex arrangements, such as those involving corporate buyers or multiple service providers, may take longer.

Most delays arise from incomplete information rather than from the escrow process itself.

To open a Jet Card Escrow account, standard onboarding checks are required. These are similar to the checks required when opening a bank account or instructing a law firm.

This usually includes confirming the identity of authorised individuals, the ownership and control of any corporate buyer, and the source of funds for the prepaid amount.

We may also need basic information about the jet card or service arrangement so the escrow account can be set up correctly.

The following information is typically required to open a Jet Card Escrow account:

• Details of the buyer and the jet card provider
• Identification information for authorised individuals
• Corporate documents showing ownership and control, where applicable
• Source of funds information for the prepaid amount
• Summary of the jet card or service arrangement
• Agreed release structure and milestones
• Target dates for payment and service commencement

Providing this information clearly and early helps ensure the account can be opened without unnecessary delay.

A Jet Card Escrow account is funded by the jet card holder or buyer.

The buyer pays the agreed prepaid amount into the escrow account at the start of the arrangement. In some cases, funds may be paid in stages, for example where a jet card balance is topped up over time.

The funding approach is agreed in advance and set out clearly in the escrow agreement.

Payments from a Jet Card Escrow account are made only when the agreed release conditions are met.

These conditions are set out in the escrow agreement and usually relate to confirmation of service availability, issuance of the jet card, allocation of flight hours or delivery of agreed milestones.

When a release request is made, we check that the agreed conditions have been satisfied before releasing funds in line with the escrow agreement.

If instructions are disputed or unclear, we will not release the funds.

Instead, the funds remain held safely in the escrow account while the parties follow the process set out in the escrow agreement. This may involve clarification, confirmation from an agreed third party, or the use of the dispute resolution process under the underlying contract.

This approach protects both parties. It ensures that money is not released prematurely and that funds remain available once the position is resolved.

If a party to the underyling contract becomes insolvent, we continue to operate under the escrow agreement.

Because the funds are held in escrow and not in the control of either party, they are protected from being used for other purposes. We will follow the agreed instructions and any applicable insolvency process, as set out in the escrow agreement.

In practice, this can provide greater certainty than relying on funds held directly by one of the parties, particularly where payment timing or entitlement is being considered as part of an insolvency situation.

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What happens if DOS & Co. becomes insolvent?

All escrow funds are segregated (kept separate from our own funds), safeguarded (protected by law from our own creditors) and kept liquid and unencumbered at the Bank of England. In the event of our insolvency, we have set aside regulatory capital that will be used by our administrators to 'unwind' our affairs - this will usually involve working with the parties to agree the identity of a new escrow agent who will 'step in' to carry out our obligations under the escrow agreement.

Funds paid into an escrow account are held separately from the money of the parties and separately from our own funds. They are not mixed with operational accounts.

All of our escrow funds are held liquid and unencumbered at the Bank of England. This means that there is no counterparty risk (the bank does not lend out funds, so a 'run on the bank' is not possible).

The escrow account is set up specifically for the purposes agreed in the escrow agreement. Funds can only be used in line with that agreement and cannot be applied for any other purpose.

This separation helps protect the funds if something goes wrong elsewhere. For example, the funds are not available to the creditors of the Employer, the Contractor, us, or the underlying bank. They remain ring-fenced for the project until they are released in accordance with the agreed conditions.

We are regulated by the Financial Conduct Authority for the provision of payment services. This means we are required to meet regulatory standards around governance, systems, controls and the handling of client funds.

Where escrow arrangements involve regulated payment activity, those activities are carried out within that regulatory framework. Other aspects of escrow are contractual in nature and governed by the escrow agreement between us and the parties.

In practical terms, this combination of regulation and contract provides structure and oversight, while still allowing escrow arrangements to be tailored to the needs of a specific matter or project.

Escrow is designed to hold, protect and release funds in line with agreed conditions. It does not decide who is right or wrong in a dispute.

We do not interpret the underlying contract, assess the quality of anything done or delivered under that underlying contract, or replace the role of a contract administrator, adjudicator or court. If there is a dispute, the funds remain held while the parties follow the agreed dispute resolution process.

The escrow arrangement also does not remove the need for a properly drafted underlying contract. It supports that contract by providing a clear and neutral payment mechanism, but it does not change the parties’ underlying rights or obligations.

Escrow pricing depends on the structure, value and duration of the escrow arrangement. There is no single fixed fee, as projects and payment flows vary.

Pricing usually reflects three main elements. First, the work involved in setting up the escrow arrangement, including compliance, onboarding and preparation of the escrow agreement. Second, the ongoing administration of the escrow account while funds are held. Third, the handling of payments or releases during the life of the project.

What pricing covers is the independent holding of funds, administration of agreed payment mechanics, record-keeping, reporting, all bank fees and support throughout the project. It does not cover legal advice, contract administration or dispute resolution, which remain the responsibility of the parties and their advisors.

If something goes wrong, the escrow arrangement provides a clear framework for dealing with it.

If there is a mistake, delay or disagreement about instructions, funds remain safely held in escrow while the issue is addressed. We follow the process set out in the escrow agreement and do not release funds unless and until the agreed conditions are met.

If a party has a concern about how the escrow account is being operated, we have a formal complaints process. This allows issues to be raised, reviewed and resolved in a structured way, with escalation routes available if needed.

We are a specialist provider focused on escrow and managed payment arrangements. Escrow is not an add-on to another service. It is a core part of what we do.

Escrow funds are held securely and separately, with infrastructure designed specifically for escrow rather than adapted from other uses. Account opening is handled efficiently, and escrow arrangements are administered through a dedicated digital escrow portal, giving authorised parties visibility and a clear audit trail.

Advisors often recommend dospay because we sit independently of the transaction, operate within a regulated framework, have a proven track record and focus on doing one thing well: Holding and administering escrow funds in a clear, neutral and predictable way.