Check your eligibility to become a Checkout.com client

At Checkout.com, we prioritise compliance with legal standards, industry regulations, and card scheme requirements (for example, Visa or Mastercard). Different sectors and industries carry different types and levels of risk for payment service providers like us. As a result, sectors and industries are categorized into different risk levels. Our sales representatives are available to help you if you are uncertain about your eligibility to become a Checkout.com client.

The different types of risk we look at include:

1. Anti-money laundering

Anti-money laundering (AML) risk is linked to certain sectors presenting a higher risk of money laundering and terrorist financing. Cash-intensive businesses are of particular risk, as it is difficult to track the source of cash and its movements, and much easier for criminals to integrate the cash proceeds of crime into legitimate income or payments.

1. Credit risk

Credit risk in the context of merchant acquiring is linked to the risk of chargebacks arising from merchants unable to provide goods or services to their customers, usually due to insolvency or business cessation. This risk increases for merchants operating in industries where timeframes between payment and delivery of goods or services is extended (for example, travel, airlines, made-to-measure furniture). From a sector perspective, the longer the average prepayment period for such a sector, the higher the perceived credit exposure.

1. Fraud

• Payment fraud risk – This risk arises when merchants become targets of fraudulent activities, causing a notable surge in fraud rates.

• Merchant fraud risk – This type of risk involves cases where merchants are suspected of engaging in fraudulent behavior.

1. Card schemes

It is our responsibility as an acquirer to ensure we comply with applicable card scheme rules. The card schemes may dictate specific requirements for acquirers engaging in business with high-risk merchants, including mandatory registrations. Certain industries or subsets of an industry (that is, specific business models within an industry) may also be considered as high brand risk due to them being prone to facilitating illegal activities.

When assessing a your eligibility, we classify industries and sectors that are involved in specific activities as “Restricted” or “Prohibited”. “Restricted” businesses can still partner with us, but will need to undergo additional due diligence checks as part of our underwriting process.

Restricted activities

You are required to undergo additional due diligence checks if you engage in activities that include:

• Acting as a money transmitter or selling stored value cards; selling stocks, bonds, securities, options, futures (forex) or an investment interest in any entity or property or providing escrow services

• Activities involving gambling, gaming and/or any other activity with an entry fee and a prize, including, but not limited to casino games, sports betting, horse or greyhound racing, fantasy sports, lottery tickets, other ventures that facilitate gambling, games of skill (whether or not legally defined as gambling) and sweepstakes, if the operator and customers are located exclusively in jurisdictions where such activities are permitted by law

• Any form of debt and loan-related businesses

• Any product or services sold through negative option marketing

• Any product or services sold through outbound telemarketing

• Collecting donations as a charity or non-profit organisation

• Dating services

• Dealing in jewels, precious metals and stones

• Digital-wallet operators

• Dropshipping

• Furniture and home-furnishings stores

• Internet pharmacies (including referral sites) or prescription drugs/devices

• Marketplaces

• NFTs

• Nutraceuticals

• Payment facilitators

• Selling alcoholic beverages, e-cigarette devices and non-cigarette tobacco products, food supplements

• Virtual currencies including but not limited to cryptocurrency exchanges

• VOIP and airtime sales

Prohibited activities

You would be considered ineligible to use our services for activities like:

• Calling cards

• Cigarettes

• Cuban cigars

• Drug paraphernalia

• Drugs/Illicit substances, steroids and certain controlled substances or other products that present a risk to consumer safety

• Encouraging, promoting, facilitating, or instructing others to engage in illegal activity

• Fraudulent/deceptive marketing practices

• High-risk file hosting/sharing and cyberlockers

• Holding penny and reverse auctions

• Inappropriate content, goods or services that promote, cause or further hate/violence/racism/religious persecution

• Infringing any duly registered copyrights/trademarks or other violation of intellectual property rights

• Offering or receiving payments for the purpose of bribery or corruption in any form of high yield financial investments (get rich quick schemes)

• Providing PC support sold via outbound telemarketing

• Running pyramid or Ponzi schemes, matrix programs

• Selling:

  • Dangerous or hazardous goods

  • Government IDs or documents

  • Items that encourage, promote, facilitate or instruct others to engage in illegal activity

  • Pornography and other obscene materials

  • Products or services identified by government agencies to have a high likelihood of being fraudulent

  • Stolen goods including digital and virtual goods

  • Weapons, firearms, and ammunitions

• Violating any law, statute, ordinance, or regulation

If you are uncertain about your eligibility to become a Checkout.com client, our sales representatives can help guide you through our requirements and policies. Get in touch with us.