Household PayMaster Accounts

Household PayMaster Accounts are third-party managed payment accounts used to manage the day-to-day running costs of large households or family office–managed residences.

Instead of family members, staff or advisors holding and paying funds directly, money is paid into an independent PayMaster account. Payments are then made to household staff, suppliers and service providers in line with agreed rules.

These accounts separate household finances from personal or family accounts, while ensuring that regular and ad hoc payments are handled in an orderly way.

Household PayMaster Accounts are suitable for large households, family offices and principals who employ domestic staff or engage multiple suppliers.

They are commonly used where there are house managers, estates teams or external advisors coordinating payments, but where the principal does not want funds held or controlled by any one individual.

These accounts are also suitable where discretion, control and oversight are important.

Household PayMaster Accounts are typically used where household costs are ongoing and varied, rather than fixed or predictable.

Common uses include paying staff salaries, utilities, maintenance contractors, security, travel-related household costs and other recurring or one-off expenses.

They are particularly useful where multiple payments need to be approved and made over time, rather than released in a single transaction.

Unlike a normal personal or family bank account, a Household PayMaster Account is operated by an independent third party.

The account holder does not unilaterally control payments. Funds are paid out only in accordance with the agreed approval matrix and payment rules.

This can reduce the risk of error, misuse or misunderstanding and provides a clearer separation between personal wealth and household operating costs.

Managing household payments directly can be time-consuming and can blur responsibilities.

Family members may not want to approve or execute every payment. Staff may not be appropriate custodians of funds. Advisors may be uncomfortable holding money or acting as informal paymasters.

Household PayMaster Accounts address these challenges by providing a neutral structure for receiving, approving and paying household costs in a controlled and transparent way.

The primary benefit of a Household PayMaster Account is controlled, discreet management of household payments without family members or staff holding funds directly.

Payments follow agreed rules, improving oversight while reducing day-to-day involvement for the principal.

Benefits for the paying party

For principals or family offices providing funds, these accounts offer confidence that money is used only for agreed household purposes.

Budgets, caps and approval thresholds can be built in, reducing the risk of overspend or unauthorised payment.

Benefits for receiving parties

For staff and suppliers, Household PayMaster Accounts provide reassurance that funds are available and payments will be made on time once approved.

Payment does not depend on the availability or attention of a single individual.

Benefits for advisors and household managers

For advisors, estate managers and household staff, these accounts provide a clear and defensible payment process.

They reduce the need to hold or move funds personally and create a transparent audit trail for household expenditure.

Household PayMaster Accounts can be structured in different ways depending on how the household operates.

Some accounts are used to manage all household payments from a single pool of funds. Others are structured around budgets for specific residences, cost categories or time periods.

Accounts may support recurring payments, one-off invoices or mixed payment types.

Yes. Household PayMaster Accounts are commonly tailored to reflect the size and complexity of the household.

Approval matrices, spending limits and reporting can be adjusted to suit the principal’s preferences and the household management structure.

They can also be combined with escrow arrangements, for example where funds need to be held for major works or long-term household projects, while day-to-day costs are paid through the PayMaster account.

In practice, all TPMA's work by separating payment from approvals rules.

These approvals may be given in advance (say, where a transaction is taking place, or a dispute has been settled, and a known amount of money needs to be paid to identified parties), or on an ad-hoc basis (where a procurement agent, house manager, interior designer, lawyer or trusted advisor is given permission to spend the paying party's funds.

A specific bank account is opened for each payment scenario, and the funds are held there until (a) a payment request is made; and (b) the approvals conditions are satisfied. Once those two conditions have been met, we carry out our compliance checks and then make the payment(s).

If those conditions are not met, the funds remain held in accordance with the account documents.

We follow the agreed approvals matrix and we do not exercise any discretion beyond ensuring that the approvals conditions have been satisfied.

Only parties authorised under the account documents can make a payment request. This is agreed at the outset and documented clearly, together with any specific approvals that might be needed, say, for payments in excess of a specific threshold, or for payments to certain beneficiaries.

Instructions are usually tied to specific documents, such as a purchase order, pro-forma invoice, invoice, payment certificate, settlement agreement, sale and purchase agreement, court order or other legal document.

We check 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.

1. Funds are paid into the TPMA.
2. Payment requests are made and approvals requirements are checked.
3. Payments are made.
4. The balance remains in the account.

This simple structure is what makes TPMA's reliable across many different use cases.

A Third-Party Managed Account is a three-way scenario between (a) the paying/funding party; (b) anyone who is entitled to make payment requests or authorise them; and (c) us, as the paying agent.

We do not provide pooled TPMA's for law firms, estate agents or other professional advisors - instead, a new account is opened for each individual client or matter - this ensures that every client's funds are in their own specific account and that we are able to carry out our required screening, monitoring and ongoing compliance requirements in respect of every individual matter.

When a professional advisor wishes to open a TPMA for their client to deposit funds with us, we onboard the paying party (the client), carry out our mandatory compliance checks, agree the account mechanics (pricing, who can make payment requests, and who can authorise them) and then open the account and provide the unique account details.

Timing depends on the complexity of the parties and the arrangement.

For straightforward structures, account opening can usually be completed within a short period (even on the same day) once information is provided.

Delays are usually caused by missing onboarding information rather than the account opening process itself.

Standard onboarding checks are required.

This includes confirming identity, ownership and control of any entities involved, and the source of funds.

We also need a clear description of the purpose of the account and those parties who will be authorised to make payment requests or authorise payment releases.

In order to open an escrow account, what is typically required is:

• Details of the parties
• Identification information
• Ownership and control details
• Source of funds information
• Summary of the underlying transactions or obligations, and a copy of the contract/agreements
• Agreed payment request and authorisation conditions

If we require any other information, we'll let you know when we give you your quote.

Accounts are funded by the party providing the funds under the agreement. Each arrangement has a uniquely addressable bank account with its own account number and sort code combination, and we are able to accept BACS/CHAPS/Faster Payments and international SWIFT payments.

Funds may be paid in a single amount or in stages, depending on the arrangement.

Once paid in, funds are ring-fenced for the agreed purpose.

We are not able to accept cryptocurrencies, cheques or cash.

Funds are released only when the agreed conditions are met.

The TPMA account opening form specifies what evidence is required and who may make payment requests or authorise releases.

When conditions are satisfied, funds are released promptly and in accordance with the agreement.

If instructions are disputed or unclear, we will not release the funds without the paying party's consent.

Instead, the funds remain held safely in the escrow account while we seek the paying party's authorisation to make the payment.

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

We hold the balance of a TPMA on trust for the paying party. What that means is that if the paying party becomes insolvent, their administrators are likely to make a claim on the contents of the TPMA as constituting funds that belong to that paying party.

What happens if DOS & Co. becomes insolvent?

All TPMA 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 returning the funds directly to the paying party.

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

All of our TPMA 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 TPMA account is set up specifically for the purposes agreed in the TPMA Account Opening agreement. Funds can only be used in line with that agreement and cannot be applied for any other purpose.

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 TPMA arrangements involve regulated payment activity, those activities are carried out within that regulatory framework.

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

Third-Party Managed Payments are designed to follow agreed payment rules, not to make judgments or resolve disputes.

We do not decide whether a payment should be made beyond checking that the agreed approval conditions have been satisfied.

We do not interpret contracts, assess performance, verify the quality of goods or services, or exercise discretion over how funds are spent.

If approval conditions are not met, or if instructions fall outside the agreed rules, payments are not made and the funds remain held in accordance with the account documents.

Pricing for Third-Party Managed Payments is usually based on the complexity of the arrangement and the level of activity on the account.

This typically covers account set-up, safeguarding of funds, ongoing operation of the account, processing of payment requests, compliance checks and reporting. Where payment volumes are higher or approval structures are more complex, pricing reflects the additional administration involved.

All pricing is agreed in advance, so parties have clarity on costs before funds are paid into the account.

If a payment request does not meet the agreed approval conditions, the payment is not made. The funds remain held in the account in accordance with the account documents.

If there is uncertainty, dispute or missing information, we pause processing and seek clarification from the paying party. We do not release funds unless the agreed conditions are satisfied.

This approach ensures that errors, informal requests or unilateral instructions do not result in unintended payments.

dospay provides a specialist, escrow-first approach to managing payments neutrally and transparently. We are structured to hold and move funds strictly in accordance with agreed rules, without exercising discretion or commercial judgment.

Our digital platform provides visibility, auditability and control over payment flows, while keeping funds segregated and protected. This makes it easier for parties and advisors to manage complex payment arrangements with confidence.

Using dospay allows parties to separate payment mechanics from decision-making, reduce operational risk and avoid the need for one party or advisor to hold and control funds directly.