Collections Services Policy

Version: 1.2

Effective Date: 2026-06-04

1. Purpose

This Collections Services Policy ("Policy") governs the Merchant's use of EFT Debit Orders, DebiCheck, and Registered Mandates (including Registered Mandate Tracking) provided through Kwik (together, the "Collections Services").

The Collections Services are excluded from the general Merchant Agreement under Section 2.3 (Excluded Services) and require separate application, underwriting, and approval. This Policy is the service-specific agreement referred to in that Section.

Where the Merchant is approved for the Collections Services, this Policy forms part of the Merchant's agreement with Kwik and incorporates, to the extent not inconsistent with this Policy:

• the Merchant Agreement, including its general provisions on liability, indemnities, confidentiality, suspension, termination, governing law, and dispute resolution;
• the Fees & Pricing document, which sets out the fees applicable to the Collections Services;
• the Privacy Notice and Data Processing Addendum;
• the Security Requirements and Information Security Policy;
• the Acceptable Use Policy;
• the Sanctions and Anti-Money Laundering Policy; and
• the Chargeback & Dispute Policy, to the extent applicable to the Collections Services.

Where this Policy conflicts with the Merchant Agreement on a matter expressly addressed in this Policy, this Policy shall prevail to the extent of that conflict. Where a matter is not addressed in this Policy, the Merchant Agreement applies.

Payout of collected funds to the Merchant is separately governed by the Payouts policy.

2. Scope

This Policy applies to:

• EFT Debit Orders (including early debit order / Authenticated Collections submissions);
• DebiCheck, including DebiCheck mandate initiation, amendment, re-authentication, and tracking;
• Registered Mandates ("RM"), including RM tracking; and
• any related Electronic Payment Instruction submitted through Kwik's platform.

This Policy applies in addition to, and does not replace, the Merchant's obligations under the Merchant Agreement and the other Legal Documents referred to in Section 1.

3. Application, Vetting and Approval

3.1 Application Process

To access the Collections Services, the Merchant ("Ultimate Creditor") must complete Kwik's Collections Services application, which requires, among other things:

• business and registration details;
• director and beneficial owner identification;
• physical and registered business addresses;
• banking details for the account into which collected funds will be credited;
• details of the Merchant's collection history, including whether the Merchant has previously been exited or declined by another sponsoring bank or bureau, and the reasons for any such exit;
• average dispute and unpaid ratios for the preceding six months, where the Merchant has an existing collections history;
• proof of any licence or regulatory approval required for the Merchant's industry (for example, NCR or FSCA registration, where applicable);
• supporting documentation, including director identification, proof of address, bank statements, CIPC registration documents, and sample mandates, as reasonably requested by Kwik; and
• any other information reasonably required by Kwik or its sponsoring or acquiring bank to assess the application.

3.2 Two-Stage Vetting

The Merchant acknowledges and agrees that approval for the Collections Services is subject to two independent stages of vetting:

1. Kwik's own internal vetting and risk assessment; and
2. Independent vetting and approval by Kwik's sponsoring bank,

and that approval at the first stage does not guarantee, and does not create any expectation of, approval at the second stage.

3.3 Right to Decline

Kwik, and separately Kwik's sponsoring bank, may each decline, refuse, or withdraw approval of an application for the Collections Services, at any stage, for any reason or no reason, in their sole and absolute discretion, including but not limited to risk, compliance, financial, operational, or reputational reasons.

Neither Kwik nor its sponsoring bank is obliged to provide reasons for declining or withdrawing an application, except where required by Applicable Law.

The Merchant acknowledges that Kwik's sponsoring bank's decision to decline or withdraw approval is made independently of Kwik, that Kwik has no control over that decision, and that Kwik is not liable for any loss arising from the sponsoring bank's decision to decline, delay, or withdraw approval.

3.4 Fees Non-Refundable

Payment of any application, registration, onboarding, underwriting, or verification fee in connection with the Collections Services does not constitute approval, does not guarantee approval, and does not create any right, expectation, or entitlement to use the Collections Services.

Unless otherwise required by Applicable Law, such fees are non-refundable, including where the application is declined by Kwik or by Kwik's sponsoring bank, regardless of the reason for declining, and including where approval is subsequently withdrawn.

3.5 Ongoing Approval

Approval for the Collections Services is not permanent. Kwik may suspend, restrict, or withdraw the Merchant's access to the Collections Services at any time, including after approval has been granted, in accordance with Sections 9 and 10 of this Policy.

4. Eligibility and Ongoing Due Diligence

4.1 Know Your Customer

The Merchant shall provide Kwik with accurate and complete information to enable Kwik to conduct and maintain Know Your Customer ("KYC") procedures, including verification of the Merchant's identity, registration details, directors, beneficial owners, business address, nature of business, and any applicable industry licence or regulatory approval.

4.2 Site Visits

The Merchant shall permit Kwik, or Kwik's sponsoring bank, to conduct a site visit at the Merchant's place of business where reasonably requested.

4.3 Ongoing Cooperation

The Merchant shall, on request, provide Kwik and Kwik's sponsoring bank with all information and supporting documentation reasonably required to satisfy Kwik's KYC, due diligence, and regulatory obligations, including in connection with a due diligence call or review of the Merchant's internal controls.

4.4 Notification of Material Changes

The Merchant shall immediately notify Kwik of any change to its business, ownership, directors, industry licence, or regulatory status, or any matter that may affect its credit record, creditworthiness, dispute or unpaid ratios, or risk profile.

5. Abbreviated Short Name (ABSN)

Kwik will allocate an Abbreviated Short Name ("ABSN") to the Merchant for use when submitting Electronic Payment Instructions, in accordance with industry rules.

The Merchant shall:

• use only the specific ABSN allocated to it, or to a specific product or service, by Kwik;
• not use its own ABSN, or any other party's ABSN, in place of the ABSN allocated to it;
• not use a single ABSN to process payment instructions on behalf of multiple products, services, or underlying businesses; and
• ensure the ABSN accurately and clearly identifies the Merchant, product, or service to the Customer.

Any deviation from this Section is a material breach of this Policy and may result in immediate suspension of the Collections Services.

6. Domestic Transactions Only

All Electronic Payment Instructions submitted through the Collections Services must be domestic South African transactions, meaning that both the payer and the beneficiary must be persons or entities in the Republic of South Africa.

The Merchant shall not manipulate, or attempt to manipulate, transactional data or payment messaging in a manner that causes a cross-border transaction to be processed as if it were a domestic South African transaction.

7. Mandates

7.1 Mandate Required

The Merchant must hold a valid Mandate from the Customer, in the form prescribed by Kwik or substantially complying with the minimum requirements below, before submitting any Electronic Payment Instruction in respect of that Customer.

7.2 Minimum Mandate Requirements

Every Mandate must, at a minimum, contain:

• the Customer's full name and identity number or company registration number;
• the Customer's bank account number and branch code;
• the name of the Customer's bank;
• the maximum amount to be debited;
• the frequency of the debit (for example, monthly, weekly, or once-off);
• the start date and, where applicable, the end date of the debit authority;
• a clear reference number that will appear on the Customer's bank statement; and
• the Customer's signature, whether in wet ink, electronic, or authenticated via DebiCheck.

A Mandate that does not meet these minimum requirements is invalid, and Kwik may suspend or reject any transaction submitted under it.

7.3 Electronic and Voice-Recorded Mandates

Electronic and voice-recorded Mandates are subject to the same requirements as paper Mandates, and must additionally be confirmed in writing by the Merchant to the Customer within twenty-one (21) days.

Where an electronic or voice-recorded Mandate is disputed, the transaction shall be reversed immediately.

7.4 Producing Mandates on Request

Where Kwik requests a copy of a specific Mandate, the Merchant must provide it within seven (7) business days. Failure to do so entitles Kwik to suspend or cancel the Merchant's access to the Collections Services with immediate effect.

7.5 Stop Instructions

Where a Customer requests, in writing, that one or more not-yet-presented debit instructions be stopped, the Merchant must acknowledge the request, cancel the relevant Mandate, and refrain from submitting further instructions under that Mandate.

8. DebiCheck Requirements

Where the Merchant uses DebiCheck or Authenticated Collections, the Merchant must be, and remain, a registered member of the Payment System Stakeholder Forum ("PSSF").

Should the Merchant's PSSF membership lapse or be withdrawn, the Merchant's access to DebiCheck and Authenticated Collections will be suspended until membership is reinstated.

9. Submission Requirements

Debit order submission data must be provided to Kwik within the timeframes specified in Kwik's technical documentation for the applicable integration method. Kwik does not guarantee processing of data submitted outside these timeframes, or data that is incomplete, inaccurate, or non-compliant with applicable clearing rules.

10. Unauthorised Debiting

The Merchant acknowledges and agrees that debiting a Customer's account without that Customer's explicit, valid consent is a criminal offence under Applicable Law and may result in prosecution.

The Merchant warrants that:

• it will not attempt to collect any amount other than an amount that is due, payable, and lawfully collectible;
• it will not attempt to collect any amount that is disputed, or that the Merchant should reasonably foresee will be disputed; and
• every Customer debited through the Collections Services has provided a valid Mandate authorising that specific transaction.

A breach of this Section is a material breach of this Policy and the Merchant Agreement, and may result in immediate suspension or termination of the Collections Services, in addition to any other remedy available to Kwik under Applicable Law.

11. Reserves, Retention and Recovery

11.1 Settlement Account

Where the Merchant does not hold an account directly with Kwik's sponsoring bank, Kwik may hold collected funds in an account in Kwik's own name with its sponsoring bank before transferring those funds to the Merchant.

11.2 EFT Debit Order Deposit

In accordance with Payments Association of South Africa (PASA) requirements, Kwik retains a deposit equal to 10% of the Merchant's monthly EFT Debit Order collection value, calculated and managed automatically by Kwik's systems. This deposit must be maintained for as long as the Merchant collects via EFT Debit Order, and mitigates the risk of disputes and unpaid transactions.

This deposit requirement applies only to collections made via EFT Debit Order, and does not apply to collections made via DebiCheck or Registered Mandates.

No interest is payable by Kwik on amounts retained under this Section.

Kwik may, in its discretion and having regard to the Merchant's risk profile, increase the percentage retained, or apply an equivalent reserve to DebiCheck or Registered Mandate collections, where reasonably necessary to manage elevated dispute or unpaid risk.

11.3 Additional Reserve

Where Kwik reasonably determines that a Merchant presents an elevated dispute, unpaid, or fraud risk, Kwik may, in addition to the deposit described in Section 11.2, withhold a further reserve from amounts otherwise payable to the Merchant, for as long as reasonably necessary to manage that risk.

11.4 Reversals, Unpaids and Set-Off

Where a bank reverses a payment and debits Kwik's account in respect of an unpaid, disputed, or otherwise reversed transaction, Kwik may recover that amount from reserve funds held under this Section, from any other amount owed to the Merchant, or, where those amounts are insufficient, directly from the Merchant's nominated bank account, in accordance with Section 15 (Negative Balances and Right of Recovery) of the Merchant Agreement.

12. Reconciliation

The Merchant shall reconcile all submissions and receipts against the reports made available by Kwik, and shall notify Kwik of any discrepancy within fourteen (14) days of the relevant report becoming available. Failure to notify Kwik within this period may affect the Merchant's ability to dispute the relevant transaction.

13. Monitoring, Ratios and Risk Management

Kwik monitors Merchant dispute and unpaid ratios on an ongoing basis, consistent with the Chargeback & Dispute Policy and the Sanctions and Anti-Money Laundering Policy.

Where the Merchant's dispute or unpaid ratios fall outside accepted industry levels, or where Kwik or its sponsoring bank reasonably determines that continued processing presents an unacceptable financial, operational, regulatory, or reputational risk, Kwik may immediately:

• increase reserve requirements;
• suspend or restrict submission of new Electronic Payment Instructions;
• require a remediation plan; or
• suspend or terminate the Merchant's access to the Collections Services,

in accordance with Sections 9 and 10 of this Policy.

14. Fees

Fees applicable to the Collections Services are set out in the Fees & Pricing document.

Kwik may vary these fees by giving the Merchant at least one month's written notice. Where the Merchant does not agree to a fee change not required by Applicable Law or a sponsoring bank requirement, the Merchant may terminate this Policy by giving three months' written notice, subject to settlement of all amounts owed to Kwik.

15. Payouts

Payment of collected funds to the Merchant, including the timing, verification, and recovery rights applicable to those payments, is governed by the Payouts policy and Sections 11 to 12 of the Merchant Agreement, and not by this Policy.

16. Data Protection

Personal Information processed in connection with the Collections Services is governed by the Privacy Notice and Data Processing Addendum.

The Merchant warrants that it has obtained all consents and authorisations from its Customers necessary to lawfully provide their Personal Information to Kwik in connection with the Collections Services, and to allow Kwik's sponsoring bank to process that Personal Information for the purposes described in the Privacy Notice.

17. Suspension

Without limiting Section 27 (Suspension of Services) of the Merchant Agreement, Kwik may immediately suspend the Collections Services where:

• a Mandate does not meet the minimum requirements of Section 7;
• the Merchant fails to produce a requested Mandate within the timeframe in Section 7.4;
• the Merchant's PSSF membership lapses or is withdrawn, in respect of DebiCheck;
• dispute or unpaid ratios exceed accepted industry levels;
• unauthorised debiting under Section 10 is suspected;
• Kwik's sponsoring bank requires suspension; or
• continued processing presents an unacceptable financial, operational, regulatory, or reputational risk.

18. Termination

Either party may terminate this Policy by giving the other three (3) calendar months' written notice.

Kwik may terminate this Policy, or the Merchant's access to the Collections Services, with immediate effect where:

• the Merchant commits a material breach of this Policy, including a breach of Section 10 (Unauthorised Debiting);
• dispute or unpaid ratios fall outside accepted industry levels;
• continued provision of the Collections Services presents an unacceptable financial, operational, regulatory, or reputational risk; or
• Kwik's sponsoring bank requires termination.

Termination does not affect any liability that accrued before termination, and the Merchant remains liable for all outstanding amounts, unpaid transactions, and disputes arising from Electronic Payment Instructions submitted before termination, in accordance with Section 28 (Termination) and Section 14 (Negative Balances and Right of Recovery) of the Merchant Agreement.

19. Limitation of Liability

Sections 30 (Indemnities) and 31 (Limitation of Liability) of the Merchant Agreement apply to this Policy.

Without limiting those provisions, Kwik is not liable for:

• incorrect account numbers, branch codes, or amounts submitted by the Merchant;
• the validity or existence of a Mandate, where the Merchant has warranted that Mandate's validity under Section 10;
• delays or failures caused by a Customer's bank or Kwik's sponsoring bank; or
• a decision by Kwik's sponsoring bank to decline, delay, or withdraw approval of the Merchant's application or continued use of the Collections Services.

20. Changes

Kwik may amend this Policy from time to time to reflect changes in PASA rules, sponsoring bank requirements, Card Scheme or clearing rules, Applicable Law, or operational requirements.

The latest version of this Policy will always be available at:

/legal/collections-services-policy

Continued use of the Collections Services after an updated version becomes effective constitutes acceptance of the revised Policy where permitted by Applicable Law.

21. Contact

Questions relating to this Policy may be directed to:

Collections Team

Email: collections@kwik.co.za