High Risk Merchants. The following industries and types of businesses are deemed as “high risk”:

  • Micro-lenders;
  • Crypto asset traders/platforms;
  • Investments (including derivates, structured deposits, currencies for difference, etc.);
  • Dealers in foreign exchange;
  • Store of digital value (vouchers, e-wallets, mobile money and e-money)
  • Gambling.

 

If you are a high risk merchant, the following risk mitigation requirements apply:

  • the Merchant must verify the ID of the Customer when opening an account or onboarding the Customer;
  • the Merchant is only permitted to use a verified ID as the proxy identifier for payment initiation, which proxy identifier must be non-editable in accordance with Capitec’s requirements; if Capitec grants written consent for an account number to be used in the verified ID flow for high-risk Merchants the account number must be verified with Capitec using an Account Verification Service i.e. AVS transaction;
  • the Merchant must provide proof of incorporation in South Africa (e.g., CIPC registration) from which they are legitimately operating a South African business (i.e. Foreign Merchants would be required to establish a South Africa branch, effectively having a physical presence and operation in South Africa);
  • the Merchant may not be liquidated, de-registered, or in the process thereof;
  • the Merchant may only credit the account of the paying Customer with funds received via a Capitec Pay payment. No payments to third- party accounts will be permitted, i.e. Merchant must check that the accountholder and Customer making the payment matches;
  • the Merchant may only credit the Capitec bank account of the paying Customer if/when account payouts (e.g. winnings, refunds) are performed, i.e. Merchant must check that the accountholder and the Customer requesting payout matches;
  • If the Merchant offers financial services, then the Merchant must be registered as a Financial Service Provider (FSP), and where applicable, must be registered as an AI with a formal RMCP approved by their Senior Management;
  • if the Merchant offers loans to Customers, then the Merchant must be a registered as a credit provider;
  • if the Merchant provides services in foreign exchange, then the Merchant must be registered as an Authorised Dealer and must be registered as an AI with a formal RMCP approved by their Senior Management;
  • if the Merchant is a Crypto Asset Service Provider, then the Merchant must be registered as an Accountable Institution, in terms of FICA, and have a formal Risk Management and Compliance Programme ("RMCP”), approved by its Senior Management;
  • if the Merchant provides derivate services, then the Merchant must be registered as a Financial Service Provider (FSP), for the appropriate category of business;
  • if the Merchant provides gambling and/or betting services, then the Merchant must be registered as a Bookmaker by the Gambling and Racing Board, of the applicable province(s) and must be registered as an AI with a formal RMCP approved by their Senior Management;
  • if the Merchant offers store of value services, for purpose of providing a digital wallet then the Merchant must be sponsored by a Sponsoring Bank for taking and holding deposits for a third party and these store of value Merchants are required to supply a bank issued account confirmation letter confirming the account where value is stored i.e., pooling / aggregation / trust account. Based on Capitec’s risk-appetite to facilitate digital wallet payments, via Capitec Pay, various factors can be considered when determining the risk posed by the digital wallet provider. Based on an assessment of these risks, it will be at Capitec’s sole discretion to approve such merchants for Capitec Pay.