A guide to the Pomelo Pay compliance process

April 7, 2021

At Pomelo Pay we take security seriously, which is why we take the time to conduct compliance checks for each business that signs up with us. This means that we may ask you to verify some information, such as your personal and business identity. So, what processes have we put in place here at Pomelo Pay? And, how do we make sure that we have a safe platform for businesses? This blog will walk you through everything you need to know.

Step 1: identifying the individual

When you sign up to use the Pomelo Pay app, we need to identify and verify the individual, which is known as our Know Your Customer (KYC) checks.

As part of the KYC, you will be asked to upload one of the following photo ID:

  • Passport
  • Driving licence
  • Government issued ID photo card

If we cannot electronically verify one of the above, then we will conduct a manual verification and ask for a utility bill dated and/or bank statement dated within 3 months.

For limited companies, at least two directors and all Beneficial Owners (i.e shareholders/controller owning 25% or more) will have to be identified, verified and screened for Sanctions, PEP and Adverse news.

Step 2: identifying the business

We will also need to verify the business information too, which is known as our Know Your Business (KYB) checks.

As part of the KYB, we need evidence of what the business does and that the business is established. We do this using the following information:

  • Independent website - business website
  • Social media profiles - the social media business page i.e. Facebook, Instagram etc.

If you do not have online or social media presence, we ask for the following alternatives to proof the business is established, for example:

  • Evidence of HMRC registration with name and UTR, if a sole trader
  • Business Banking Statement
  • Proof of license registration i.e. Private Hire License for taxi drivers
  • Sales invoice from a recent client that you have provided services to  
  • Invoice from a supplier who has supplied goods or services

Determining if a business is successful or not

The compliance process usually takes 48 hours. Once the KYC and KYB checks have been completed, you will receive a welcome email from our team to let you know and our Customer Success team will reach out to support your onboarding process.

If a business has not qualified, you will also receive an email notifying you of the outcome.

Businesses that we cannot onboard

Customers are screened at onboarding to ensure that we can deal with their business. We would love to help as many businesses as we can who sign up with Pomelo Pay, however sometimes we are bound by our regulators meaning that certain industries are outside our risk appetite and will not qualify.

Industries that do not qualify include:

  • Adult services, dating or escort services
  • Gambling, lottery or betting services
  • Financial services, investment, insurance, loan, or banking businesses
  • Currency exchanges including virtual currencies, and money services business
  • Sale of Narcotics
  • Auction / pawn services
  • Real estate
  • Sales of Arms, weapons, military equipment, explosives, batons, fireworks, firecrackers.
  • Precious metals and stones (e.g. jewellery)
  • Scrap metal
  • Waste management
  • Sales of any psychotropic or prohibited medicines
  • Plastic surgery
  • Crowdfunding
  • Peer to peer lending
  • Trading in invoices and virtual currencies
  • Pyramid schemes and multi-level marketing
  • Gold investment
  • Sale of personal information / products that infringe on personal privacy
  • Handling any hazardous, poisonous or dangerous chemicals

Business types that we also cannot onboard include:

  • Partnerships, including Limited Liability Partnerships (LLPs)
  • Limited companies by guarantee
  • Charities
  • Community interest company (CIC)
  • Clubs or other non-registered organisations
  • Trusts, funds or Special Purpose Vehicles (SPV)

We want businesses to thrive, which is why at Pomelo Pay, our range of payment solutions and dedicated team are here to help take your business to the next level. Get in touch with the Sales Team to get started with the onboarding process today.