Before a business can accept payments online, payment providers are required to verify who they’re working with. This process is known as Know Your Customer (KYC).
KYC is a regulatory requirement in South Africa, designed to prevent fraud, money laundering and other financial crime. While it can feel like an administrative step, it plays an important role in keeping payments secure and building trust across the financial ecosystem.
For South African SMEs signing up to a payment gateway like Payfast by Network, understanding KYC — and knowing what’s required upfront — can make the verification process quicker and far less frustrating. In this blog, we explain why verification is required, what documents you’ll need, and how to avoid common delays, so you can start transacting with confidence.
Why is verification required to accept payments?
Verification is required under South Africa’s Financial Intelligence Centre Act (FICA). FICA requires all financial service providers to confirm the identity of individuals and businesses they work with, assess risk and maintain accurate records.
For merchants, this means:
- More secure transactions
- Protection against fraud and financial crime
- Greater trust for customers paying online
In short, verification helps ensure Payfast remains a safe, reliable platform for businesses and their customers.
What’s required to verify your Payfast account?
To activate your Payfast account and unlock services such as online payments, POS acceptance and unified commerce tools, you’ll need to submit valid, up‑to‑date documents.
The exact documents required depend on your account type, but all verification is completed in line with FICA requirements.
Verification requirements by account type
Individuals and sole proprietors
You’ll need:
- A valid South African ID or passport
- Proof of physical address (not older than three months)
- A bank confirmation letter or a recent bank statement
These documents confirm who you are, where you operate and where payouts will be made.
Registered businesses (companies and close corporations)
As part of the verification process, you’ll be asked to provide:
- CIPC registration documents
- Proof of business address
- Bank account confirmation
- ID documents for all directors
- Beneficial ownership information (where applicable)
This ensures the business details match official CIPC records and that authorised representatives are correctly identified.
Causes and non‑profit organisations
Cause accounts require additional governance documentation, including:
- An ID or letter of authority for the authorised signatory
- Proof of organisational address
- An NPO certificate issued by the Department of Social Development
- For NPCs, CIPC documents showing directors
- Bank account confirmation in the organisation’s name
These checks help ensure transparency and appropriate oversight.
What can slow down verification?
Most verification delays are caused by missing, outdated or unclear documents. Common issues include:
- Incorrect or incomplete uploads
- Business details that don’t match ID or CIPC records
- Proof of address older than three months
- Blurry or low‑resolution document scans
Selecting the wrong account type can also slow things down, as each category has different verification requirements.
Industry‑specific considerations
Some industries may need to provide additional information based on regulatory requirements. For example:
- Healthcare providers may be asked for practice registration numbers
- Schools or training institutions may need to confirm whether they operate as public or private entities
- Causes may need extra governance documentation
Most SMEs with straightforward business structures are verified quickly when their documents are accurate and up to date.
What happens after your Payfast account is verified?
Once your documents have been approved, you’ll receive confirmation emails letting you know your Payfast account is ready to transact. Verification typically takes around two business days from the time valid documents are received.
After approval, you can:
- Set up your preferred payment methods
- Activate POS terminals if needed
- Manage transactions via the Payfast Dashboard
- Use payout features like Immediate Payouts, once eligibility criteria are met
Ready to get started?
Preparing your documents in advance can help you get verified faster and start accepting payments sooner. If you have any questions along the way, our support team is always available via live chat on our website.
Join thousands of South African businesses who trust Payfast by Network to power secure, seamless payments.
