Navigating High-Risk Industries: A Guide for Peach Payments Merchants

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What products and services are prohibited?

What products and services are restricted?

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What if I am noncompliant?

For dropshipping merchants

At Peach Payments, we understand that every business venture is unique, and so are the challenges and opportunities you face. In line with our commitment to compliance and adherence to regulatory standards, we want to provide you with essential information regarding high-risk industries. Being aware of these categories can help you make informed decisions when using our platform and ensure a smooth and successful partnership.

Compliance is Key

First and foremost, it's crucial to understand that Peach Payments operates in compliance with the rules and regulations set out by reputable entities, including the Payments Association of South Africa (PASA), the South African Reserve Bank (SARB), and card associations like Visa and Mastercard. These regulations are in place to maintain the integrity of financial transactions and protect both consumers and businesses alike.

Prohibited Merchant Categories

To maintain a secure and reputable payment ecosystem, Peach Payments prohibits transactions related to the following categories:

• Illegal Products and Services: This includes any illicit activities or offerings that violate the law.
• Substances and Drugs: The sale of illegal drugs or substances designed to mimic their effects is strictly prohibited.
• Intellectual Property Violations: Items or services that infringe on intellectual property rights, such as counterfeit goods, unauthorized brand sales, and pirated software or music, are not allowed.
• Adult Content and Services: This includes escort agencies, massage parlors, adult content, and miscellaneous adult entertainment.
• Fraudulent Schemes: Any involvement in fraudulent investment schemes or pyramid schemes is against our policies.
• Cannabis Products: Transactions related to cannabis products and dispensaries are not permitted.
• Hate, Violence, and Extremism: We do not support products or content that promote hate, violence, racial intolerance, or any form of extremism.
• Illegal Telecommunications Equipment: The sale of illegal telecommunications equipment is prohibited.
• Firearms and Explosives: Transactions related to firearms, ammunition, or explosives without the proper licenses and permits are not allowed.
• Stolen Goods: This includes digital and virtual goods, and their sale is strictly prohibited.

Restricted Business Categories

Certain industries are subject to restrictions and may require prior written approval to transact through Peach Payments. These include, but are not limited to:

• Crowdfunding
• Pre-order of Goods: Selling items on a pre-order basis is restricted.
• Airtime Sellers/Resellers and Calling Apps
• Buy Now Pay Later Services
• Dropshipping
• Key-Entry Telecom Services (Long Distance Services)
• Merchants Selling Vouchers
• Merchants Selling Timeshares or Advertising Such
• Marketplaces
• Airlines
• Tobacco and Nicotine Products
• Cannabidiol (CBD)
• Debt Collection Agencies
• Commodity Investments
• Financial Services
• Drug Stores and Pharmacies
• Gambling and Betting
• Security Brokers/Dealers
• Direct Marketing

Please note that while the above list represents common high-risk industries, it is not exhaustive. If your business falls into a category you believe might pose a compliance challenge, please reach out to our support team for guidance.

Settlement and Documentation Verification

At Peach Payments, we may need to pause settlement briefly if additional documentation or proof of services is required for specific transactions. This is a necessary step to ensure transaction authenticity. While we understand the importance of cash flow for your business, this verification process is in place to protect all parties involved. Our support team will promptly request any needed documents, and your cooperation in providing them will help expedite settlement and maintain a secure payment environment.

We'd like to emphasize that Peach Payments' policy strictly discourages merchants from relying solely on settlement to fund client orders. Depending solely on settlement can lead to order fulfillment delays due to processing times. We encourage all merchants to have alternative funding mechanisms in place to ensure timely order fulfillment.

Moreover, please be aware that the option for daily settlement may not be immediately available; it depends on your trading history with us. This approach ensures a smoother and more reliable transaction process as you establish a successful trading relationship with our platform.

Additional Prohibitions:

Noncompliance

As a user of Peach Payments’ services based in South Africa, it is imperative to adhere to our compliance guidelines. Our compliance teams may periodically request you to revise your marketing materials or aspects of your user experience to ensure ongoing compliance with relevant national and provincial laws and regulations governing the use of financial products. Failure to meet the requested compliance deadlines could result in the closure of your Peach account.

Dropshipping with Peach Payments

To sign up as a dropshipping merchant with Peach Payments, amongst your normal FICA documentation we will also request additional information to ensure a sustainable relationship. 

You will be required to provide:

• The address (URL) of your live website, in order to conduct due diligence checks
• A signed agreement between yourself and your dropshipping supplier
• If you are currently trading, provide 3 invoices and 3 PODs (Proof of Delivery) for goods you have previously delivered (preferably dated 3 months or less).

The following policies should be clearly outlined on your website 

• The website should provide detailed delivery timelines (including delivery times from your supplier)
• Refund and return/exchange policy
• Cancellation Policy
• Terms and Conditions
• Customer contact details for reaching out

Please note the application will be reviewed by our risk team upon receipt of the application and this may take 3-5 business days.

In conclusion, we appreciate your partnership with Peach Payments, and we are committed to providing you with a secure and compliant payment processing experience. If you have any questions or require further clarification regarding high-risk industries or any other aspect of our services, please do not hesitate to contact our dedicated support team.