Why does my payment provider need to know what I sell?

“Why do you need to know what I sell?” It’s a fair question.

When you’re setting up a payment account, your main priority is probably pretty simple: you want to start accepting payments.

So when you’re asked about your business, your products, your customers, your owners and how your business operates, it can feel like a lot of questions for something that should be as simple as taking a payment.

The reason is straightforward: we need to understand your business before we can process payments for you.

What you sell, who you sell to and how your business operates can affect the types of payments we can support, whether additional checks are needed and what information we may need from you.

So, no, we're not being nosy. We're getting to know your business so we can help you get paid.

Why does what I sell matter?

Not every business presents the same level or type of payment risk. Selling T-shirts online is different from selling high-value electronics. Selling travel packages is different from selling financial services. Some products and services are regulated, while others may have specific requirements around things like age, licensing, delivery or quantity.

That's why we ask what you're selling. Knowing what your business offers helps us determine:

• Whether we can support the products or services you sell
• Whether any additional checks or information are required
• Whether licences, permits or registrations apply
• Whether there are specific conditions around processing payments for your products
• How best to support your business as it grows

Being asked about a product doesn't automatically mean you can't sell it or accept payments for it. It may simply mean we need a little more information before we can complete our review.

The more accurately you describe your business upfront, the less likely you are to experience unnecessary delays later.

But why do you need to know who I am and who owns my business?

This is where you may come across a few acronyms: KYC, KYB and UBO. Don't worry, they're simpler than they sound.

KYC: Know your customer

KYC is about you, the person behind the account. Depending on your business and circumstances, this may include information such as:

• Your identity
• Your contact details
• Your proof of address
• Other information needed to verify who you are

Essentially, we need to know who we're doing business with.

KYB: Know your business

KYB is about the business itself. If you're applying as a registered business, we may need to verify things such as:

• Your business registration details
• What your business does
• What products or services you sell
• Who owns or controls the business

KYC and KYB work together. We need to understand both the people behind the business and the business itself.

What does UBO mean?

You may also come across the term Ultimate Beneficial Owner, or UBO. In simple terms, this means the person who ultimately owns or benefits from a business.

For example, someone may own a share of a company and therefore benefit financially from that company. Identifying the people who ultimately own or control a business helps us understand who we're doing business with.

Keeping this information accurate and up to date also helps payment providers meet their obligations under legislation such as the Financial Intelligence Centre Act (FICA).

If ownership information isn't kept up to date, it can sometimes result in additional questions, onboarding delays or restrictions while the information is being reviewed.

What are restricted or prohibited products?

There are some products and services that payment providers cannot support, while others may require additional checks or conditions.

Prohibited products or services are those we cannot process payments for. Restricted products or services may be supported, but additional requirements may apply.

For example, there may be requirements relating to:

• Customer age
• Quantity or volume
• Licensing
• Packaging
• How products are marketed or delivered

Some restrictions also exist because of applicable laws and regulations. We don't make those laws, but we do have to operate within them.

If we ask you for more information about a particular product, it doesn't mean you've done anything wrong. We may simply need to understand exactly what you're selling before we can determine what requirements apply.

Being open and accurate about your products from the start is one of the best ways to avoid unnecessary delays.

Do I need a licence?

Some products and services require a licence, permit or registration before they can legally be sold. If this applies to your business, we may ask you to provide the relevant documentation during the onboarding process.

This helps us confirm that the necessary requirements are in place before we start processing payments for those products or services. If you're not sure whether your business needs a particular licence or approval, it's worth checking with the relevant authority or industry body.

What does FICA have to do with my payment account?

The Financial Intelligence Centre Act (FICA) forms part of South Africa's framework for preventing financial crime, including money laundering and terrorist financing.

For businesses operating within the relevant regulatory framework, this means payment providers need processes to identify customers, understand businesses, assess risk and identify potentially suspicious activity.

That's why you may be asked for information about:

• Who you are
• What your business does
• Who owns or controls the business
• What products or services you sell
• Who your customers are
• How your business operates

It's all part of understanding who we're doing business with and what we're processing payments for.

Why can't you just check my website?

We often use your website as a helpful starting point, but it doesn't always tell us everything we need to know.

For example, your website may not show:

• All the products you want to process payments for
• Where your customers are based
• How your products or services are delivered
• Whether you sell through other channels
• Whether another business or intermediary is involved
• How your business actually operates behind the scenes

The information you provide during onboarding helps us build a more complete picture of your business. It also gives you the opportunity to tell us about things that may not be obvious from your website.

What if my business changes later?

Businesses change. That's normal.

Maybe you started out selling clothing and later added electronics. Perhaps you've introduced a new service, started selling internationally or changed the way you deliver your products.

If something significant changes, let us know.

A change to your products, customers or business model may mean that we need to review your account or ask for some additional information.

Keeping your business information up to date helps us make sure your account continues to accurately reflect what you're doing.

What it all means for your business

At the end of the day, it's about understanding your business. KYC helps us verify the people behind the account. KYB helps us understand and verify the business. UBO information helps us understand who ultimately owns or benefits from the business. And knowing what you sell, who you sell to and how your business operates helps us determine how we can support your payments and whether any additional requirements apply.

We know answering questions about your business isn't the most exciting part of setting up a payment account. But getting the information right at the beginning can help avoid unnecessary questions and delays later. So when we ask “What do you sell?”, we're not being nosy. We're getting to know your business so we can help you get paid.

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