MERCHANT / CUSTOMER AGREEMENT

This Agreement is made together with the date of this application between:

Readech Solution (SA 0517189-T) / Readech System Solution Sdn Bhd (202201018596), a company incorporated in Malaysia and having its principal place of business at 27-2, Block F2, Dataran Prima, Jalan PJU 1/42A, 47301 Petaling Jaya, Selangor, Malaysia, or its assign parties (hereinafter called “readech”) of the one part;

AND

A company incorporated in Malaysia with the company information stated in Section C of the readech Retail Application Form, annexed hereto as Appendix A (hereinafter called “The Company”) of the other part.

WHEREAS:

(A) readech is involved in the provision of a payment platform to facilitate payment processing, including DuitNow QR payment services via Bank under the PayNet DuitNow scheme (collectively referred to as “Service”). The provision of the Services is governed by the terms and conditions in the agreements executed or to be executed between readech and the relevant financial institutions and PayNet, including but not limited to the PayNet Standards (as hereinafter defined).

(B) The Company is engaged in the operation of retail outlets and provision of products and/or services available at the retail outlets.

(C) The Company is desirous of appointing readech for the provision of the Service and other related products and services subject to and based on the terms and conditions as set out in this Agreement.

NOW THIS AGREEMENT WITNESSETH as follows:

1. Definitions and Interpretation

1.1 In this Agreement, unless the context otherwise requires, the following terms shall have the following meanings:

Agreement - Means this Agreement and all the Schedules and Appendices hereto.

Acquirer Bank / Participating Bank - Means any licensed financial institution in Malaysia that participates in the DuitNow QR scheme and through which readech processes DuitNow QR transactions on behalf of the Company.

ADC - Account Data Compromise event which has occurred or is likely to occur in accordance with the PayNet Standards.

Business Day - Any day (excluding Saturdays, Sundays and public holidays) on which banks in Kuala Lumpur and Selangor Darul Ehsan are open for business.

Commencement Date - The date of this Agreement.

Company’s Information - Any information that the Company provides to readech in the registration process, payment process, or other features of the readech Service, or any information provided in connection with the Service.

Customer - The natural person or legal entity who has purchased products and/or services from the Company using DuitNow QR payment.

DuitNow QR - The national QR code payment standard adopted in Malaysia, governed by PayNet, enabling fund transfers and payments from a Customer’s bank account or e-wallet via a QR code scan.

DuitNow QR Merchant - The Company, being a merchant duly registered to accept DuitNow QR payments under this Agreement.

Excessive Dispute Programme - A programme under PayNet Standards for monitoring and managing disputed, erroneous, or fraudulent DuitNow QR transactions at the readech and Company level to determine when readech or the Company has exceeded or is likely to exceed monthly dispute thresholds.

Fees - The fees payable by the Company to readech for the Service as stated in Annexure 1 of the readech Retail Application Form, excluding banking charges imposed on readech, including any revised Fees agreed in writing from time to time.

PayNet - Payments Network Malaysia Sdn Bhd (Company No. 200801035403), the national payments network and infrastructure provider for Malaysia, responsible for operating and governing the DuitNow QR scheme and standards.

PayNet Standards - All laws, guidelines, operating rules, procedures, circulars, and manuals issued or administered by PayNet, Bank Negara Malaysia (BNM), and the Acquirer Bank in relation to DuitNow QR and related payment services, as amended from time to time.

Payment Instruction - An instruction initiated by the Customer via a DuitNow QR scan to transfer funds from the Customer’s bank account or e-wallet to the Company’s designated settlement account.

Personal Data - Has the meaning ascribed to it in the Personal Data Protection Act 2010 (PDPA 2010).

QR Code / QR Dongle - The readech-issued physical or digital QR code device assigned to the Company’s merchant outlet for accepting DuitNow QR payments.

Refund - A reversal of a DuitNow QR transaction initiated by readech or the Acquirer Bank upon request from the Company or Customer in accordance with the PayNet Standards and this Agreement.

Settlement Account - The Company’s nominated Malaysian Ringgit bank account into which readech shall remit collected funds after deducting applicable Fees.

Specified Persons - The State of Israel or its residents, or any entity owned or controlled directly or indirectly by the State of Israel.

The Bank - The Acquirer Bank or Participating Bank through which readech maintains its DuitNow QR transaction processing.

Transaction - Any payment made by a Customer to the Company via DuitNow QR scan through the readech platform.

1.2 Words bearing the singular in this Agreement shall include the plural and vice versa.

1.3 Titles and headings are used for convenience only and do not define or limit the scope of this Agreement.

1.4 All Recitals and Appendices shall be read and construed as an essential part of this Agreement.

1.5 “Parties” shall mean readech and the Company; “Party” shall mean either of them.

2. Appointment

The Company hereby appoints readech for the provision of the Service in accordance with the terms of this Agreement for the duration of the Term as defined in Clause 19.1 below, and readech hereby accepts the appointment.

3. Relationship

3.1 In providing the Service, the parties agree that:

readech shall act as a payment facilitator to enable the Company to accept DuitNow QR payments from Customers;
readech shall act in accordance with written instructions of the Company’s authorised representatives within the scope of the Service; and
readech acts solely as a payment switching and aggregation service provider. readech does not control the products or services transacted by the Company and bears no liability for the completion of any underlying commercial transaction between the Company and its Customers.

3.2 Notwithstanding the provision of the Service, the Company acknowledges that:

readech is not a bank. The Service is a payment aggregation and switching service, not a banking service;
readech does not act as a trustee, fiduciary, or escrow agent in respect of the Company’s funds. readech acts as a custodian only. The Company shall not receive interest on funds handled by readech;
DuitNow QR transactions are governed by the PayNet Standards and the policies of the relevant Acquirer Bank; and
PayNet or the Acquirer Bank may at any time, without prior notice, suspend or de-register the Company from the DuitNow QR scheme for any reason permitted under the PayNet Standards.

3.3 The Company shall at its own cost register with the Acquirer Bank and obtain a merchant DuitNow QR profile prior to the commencement of the Service.

3.4 The Company hereby agrees that:

PayNet may at any time prohibit the Company from using DuitNow QR marks or designations;
PayNet and the Acquirer Bank shall be entitled to enforce any provision of the PayNet Standards and to prohibit any conduct deemed to damage or risk damage to the DuitNow QR ecosystem; and
The Company shall not take any action to injunct or interfere with PayNet’s or the Acquirer Bank’s rights as described above.

4. Requirements of Transactions

The Company hereby agrees that each sales transaction facilitated through the Service must contain the following:

Complete description of the products and/or services offered;
Any guarantees and/or warranties granted by the supplier and/or manufacturer;
Return and refund policy, acknowledged by the Customer;
Customer service contact details, including the Company’s address, email address, and contact number;
Transaction currency as Malaysian Ringgit (MYR);
Export restrictions (if known);
Delivery policy (if applicable);
Customer personal data privacy policy in accordance with PDPA 2010;
Security capabilities and policy for transmission of payment transaction details; and
Any legal restrictions applicable to the products or services (if known).

5. Completion of DuitNow QR Transactions

In accepting DuitNow QR payments, the Company shall strictly observe the following procedures:

5.1 Displaying the QR Code

The Company shall display the readech-issued QR Code (static or dynamic) prominently at the point of sale or on the readech QR Dongle device.
The QR Code must be presented in a manner that is clearly scannable by the Customer’s mobile banking application or e-wallet.

5.2 Transaction Process

The Customer shall scan the QR Code using a DuitNow QR-enabled mobile banking application or e-wallet.
For dynamic QR transactions, the Company shall input the correct transaction amount before presenting the QR Code.
The Company shall verify the payment notification or confirmation received via the readech platform, the Acquirer Bank’s portal, or SMS/email before releasing goods or performing services.
The Company shall not release goods or services until payment confirmation is received.

5.3 Transaction Records

All transactions shall be denominated in Ringgit Malaysia (MYR).
The Company shall retain transaction records (digital or printed) for a minimum of three (3) years and provide them to readech, PayNet, or the Acquirer Bank upon request.
The Company shall issue a receipt or confirmation to the Customer upon successful payment.

5.4 Refunds

Refund requests shall be processed in accordance with the PayNet Standards and readech’s refund procedures, as communicated to the Company from time to time.
The Company shall not initiate any refund directly to the Customer’s account without prior authorisation from readech.
Refunds shall be credited to the Customer’s originating bank account or e-wallet within the timeframes stipulated by PayNet Standards.

6. Remittance of Payments by readech

6.1 The Company hereby irrevocably authorises readech to collect all DuitNow QR transaction funds received on behalf of the Company into readech’s designated banking accounts. readech shall remit all such funds less applicable Fees to the Company’s Settlement Account in accordance with the agreed settlement schedule stated in the Fee Schedule of the readech Retail Application Form.

6.2 The frequency and date of payment as set out in Clause 6.1 may be varied in writing by the parties.

6.3 readech and/or the Acquirer Bank shall have absolute discretion not to remit funds to the Company if any of the following events has or might have occurred:

The Customer has disputed or reversed the transaction;
Dispute, refund request, fraud, forgery, or suspicious transaction is identified;
The Company is unable to furnish documents or records related to the transaction upon request;
Breach or suspected breach of this Agreement by the Company;
Non-compliance with the PayNet Standards or readech’s operating procedures;
This Agreement is terminated by readech for any reason whatsoever; or
PayNet or the Acquirer Bank has directed readech to withhold or reverse payment.

7. Release

The parties hereby agree that readech shall not be held liable for any dispute between the Company and any Customer unless it is reasonably proven that such dispute arose directly from the negligence, fraudulent act, default, breach, or omission committed by readech in the provision of the Service.

8. No Warranty

readech shall use its best efforts to ensure that DuitNow QR transactions are processed in a timely manner. However, readech makes no representations or warranties regarding the length of time required to complete processing, as the Service is dependent upon many factors beyond its control, including but not limited to delays in the banking system, PayNet infrastructure, internet connectivity, or third-party mobile applications.

9. Disclaimer and Limitation of Liability

9.1 The Company shall not hold readech and its holding company, affiliates, subsidiaries, employees, and suppliers liable for any losses or liabilities and shall indemnify readech against any claims brought by PayNet, the Acquirer Bank, any regulatory body, or any third party for matters caused directly or indirectly by the Company or any third parties related to the Company in connection with the use of or access to the Service. The Company shall forthwith reimburse readech for any fine and all costs (legal or otherwise) incurred.

9.2 readech and the Company shall not be liable to each other for any act or omission on the part of any third parties not within either Party’s control, including PayNet, the Acquirer Bank, or the Customer’s banking service provider.

10. Indemnification

Subject to Clauses 7 and 9, the defaulting party agrees to indemnify and hold the non-defaulting party, its holding company, subsidiaries, affiliates, officers, directors, and employees harmless from any claim or demand made or incurred by any third party due to or arising out of the defaulting party’s breach of any terms of this Agreement or violation of any applicable law.

11. Violations by the Company

If the Company engages in any of the following, readech shall be entitled, at its sole discretion, to limit the Service or immediately terminate this Agreement by written notice:

Using the Service to receive payments for sexually oriented or obscene materials or services;
Using the Service to receive payments for narcotics, controlled substances, or prescription drugs in violation of any laws;
Using the Service to receive payments for wagers, gambling debts, or gambling winnings;
Using the Service to receive payments for replica, counterfeit, or prohibited products;
Using the Service to receive payments for firearms, ammunition, or dangerous weapons;
Tampering, hacking, or modifying the security or functionality of the Service or readech platform;
Using the Service for money laundering or terrorist financing activities;
Using the Service for pyramid schemes or Ponzi schemes;
Using the Service for any illegal, immoral, or prohibited activities, including violations of Bank Negara Malaysia directives, PayNet Standards, or applicable laws;
Actions that damage the goodwill of PayNet, the DuitNow QR scheme, or the Acquirer Bank;
Dealing in the currency of Israel or with Specified Persons;
Dealing with persons associated with the Taliban, Osama bin Laden, Al-Qaeda, or organisations listed under UN Security Council Resolutions; and/or
Involvement in any Banned and High Risk Industries as updated from time to time in Appendix B.

The Company acknowledges that readech may suffer substantial damages as a result of such violations, including fines from PayNet or the Acquirer Bank and reputational damage, and that readech shall be entitled to all equitable relief including injunctions and specific performance.

12. Fees

12.1 The Company shall pay readech the Fees as set forth in the Fee Schedule in Annexure 1 of the readech Retail Application Form. readech shall be entitled to deduct all Fees from the funds received on behalf of the Company as set out in Clause 6.1.

12.2 All Fees shall be assessed and payable in Malaysian Ringgit (MYR). The Company’s account and all transactions are displayed in MYR unless otherwise specified.

12.3 PayNet’s DuitNow QR Merchant Discount Rate (MDR) or any applicable interbank charges as determined by PayNet and/or the Acquirer Bank from time to time may be passed through to the Company and shall be reflected in the Fee Schedule.

13. Receiving Payments

13.1 DuitNow QR Funded Payments

By accepting DuitNow QR payments, the Company agrees that if a reversal or dispute occurs on any transaction, readech will reverse the payment and debit the Company’s account balance held with readech. If there are insufficient funds, the Company agrees to reimburse readech through other means within fourteen (14) days of written notification.

13.2 Refused or Failed Payments

Any DuitNow QR payment that fails, is declined, or is unclaimed shall be returned to the originating Customer account in accordance with the PayNet Standards. readech shall notify the Company of any such failed transactions within the reporting schedule in portal.

14. Warranties in Respect of Company’s Information

14.1 The Company is solely responsible for the accuracy and legality of the Company’s Information. readech acts solely as a passive conduit for the distribution and processing of the Company’s Information and shall not use such information for any purpose other than provision of the Service.

14.2 The Company shall use its best endeavours to ensure that the Company’s Information and activities transacted through the Service shall not:

Be false, inaccurate, or misleading;
Be fraudulent or involve the sale of counterfeit or stolen items;
Be related to gambling or gaming activities of any nature;
Violate this Agreement as defined under Clause 11;
Infringe any third party’s intellectual property rights;
Violate any law, statute, ordinance, contract, or regulation;
Be defamatory, threatening, harassing, or unlawful;
Be obscene or contain child pornography; or
Contain malware, viruses, trojan horses, or any other harmful code.

15. Representations, Undertakings and Covenants of the Company

15.1 The Company hereby undertakes and covenants as follows:

To obtain at its own cost all necessary licences, permits, and capabilities to conduct its business;
To have legal and legitimate rights to sell and market the products and/or services offered to Customers;
Not to offer any products and/or services at a price lower than the market rate using commercially unreasonable promotional tactics;
Not to impose any surcharge, commission, or additional charge on Customers for payment via DuitNow QR, or any other condition that disadvantages Customers choosing DuitNow QR over other payment methods;
To be financially liable for all transactions, Customer disputes, refunds, fraudulent transactions, and all customer service-related issues caused by the Company;
Not to transfer any financial liability to Customers or require Customers to waive their dispute rights;
To provide readech, PayNet, and the Acquirer Bank with all necessary information, documents, and transaction records upon request;
To comply with the PayNet Standards and all relevant laws and regulations;
To participate and cooperate fully in audits related to DuitNow QR compliance or fraud control upon request by readech, PayNet, or the Acquirer Bank;
Not to deal directly with the Acquirer Bank and/or PayNet without the prior written consent of readech;
To promptly resolve any claims or complaints from Customers regarding products and/or services; and
To comply with all applicable export or import laws and restrictions.

16. Inspection at the Company’s Premises

PayNet, the Acquirer Bank, and/or readech shall be entitled to enter any of the Company’s premises, with or without prior notice, to audit and inspect the software, hardware, system records, procedures, and any relevant systems to ascertain whether the operation, maintenance, security, and integrity thereof may adversely affect their interests or rights under this Agreement. All costs and expenses incurred shall be borne by the Company.

17. Confidentiality and Intellectual Property Rights

17.1 All information obtained from or through readech in connection with the Service shall be kept confidential by the Company and shall not be disclosed or used other than as contemplated under this Agreement.

17.2 All information obtained from or through the Company in connection with the Service shall be kept confidential by readech and shall not be disclosed without the Company’s consent.

17.3 The Company acknowledges that all intellectual property rights in the readech Payment System, readech software, DuitNow QR integration tools, and readech Marks are the sole and exclusive property of readech and/or its licensors.

17.4 The Company shall not, without readech’s prior written consent, reproduce, copy, reverse compile, adapt, modify, distribute, commercially exploit, display, broadcast, or create derivative works from the readech Materials.

17.5 readech acknowledges the intellectual property rights in the Company Materials are the sole and exclusive property of the Company and/or its licensors and shall not use them without prior written consent.

18. Privacy and Security

readech shall not sell or rent the Company’s information to third parties for marketing purposes without the Company’s express written consent. readech shall only use the Company’s Information as described in the Privacy Policy available at https://www.readech.com/privacy.html. readech shall store and process the Company’s Information on computers located in Malaysia that are protected by physical and technological security devices consistent with the requirements of PDPA 2010.

19. Term & Termination

19.1 This Agreement shall commence on the Commencement Date and, unless earlier terminated or extended as provided below, shall end twenty-four (24) months later (“Term”). This Agreement shall automatically renew on a yearly basis upon expiry unless either party provides written notice of termination to the other party at least ninety (90) days prior to the end of the then-current Term.

19.2 This Agreement may be terminated upon an Event of Default, including:

Material breach of obligations not remedied within fourteen (14) days of written notice;
Voluntary or compulsory liquidation, bankruptcy, or receivership;
Composition or arrangement with creditors; or
Winding-up order or resolution other than for reconstruction purposes.

19.3 This Agreement shall terminate automatically and immediately without prior notice upon:

Blacklisting of the Company or its directors by PayNet, the Acquirer Bank, or Bank Negara Malaysia;
PayNet de-registering readech or the Acquirer Bank ceasing to participate in the DuitNow QR scheme;
The Company engaging in fraudulent, counterfeit, or suspicious transactions;
The Company registering under a new name to circumvent the PayNet Standards;
The Company conducting activities causing readech or the Acquirer Bank to violate the PayNet Standards;
Irregular or excessive disputed transactions, non-compliance with data security standards, or other circumstances increasing risk exposure to readech or PayNet;
Violation by the Company of any applicable laws or PayNet Standards; or
The Company processing transactions above prescribed thresholds without entering into a direct merchant agreement with the Acquirer Bank.

19.4 Upon termination:

Any pending transactions under the Service shall be cancelled or completed at readech’s discretion;
The Company may not close its account to evade investigation. readech may hold funds for up to one hundred and eighty (180) days during a pending investigation. Rightfully owed funds shall be released within thirty (30) days of resolution;
The Company shall remain liable for all obligations related to its account; and
If the Company does not access its account for a period of three (3) years, the account shall be terminated without further notice and unclaimed funds shall be subject to applicable laws on unclaimed property.

20. Remedies and readech’s Right to Collect from the Company

20.1 If any of the following events occur:

The Company commits a breach of any term of this Agreement;
readech is unable to verify information provided by the Company and the Company refuses to cooperate;
readech reasonably believes that the Company’s account or activities pose a significant credit or fraud risk;
readech reasonably believes the Company’s actions may cause financial loss or legal liability; or
The Company’s use of the readech platform is deemed an abuse of the DuitNow QR scheme,

then readech shall be entitled to: (i) hold funds in the Company’s account; (ii) limit funding sources and payments; (iii) limit access to the account; (iv) limit withdrawals; (v) suspend or close the account; and/or (vi) refuse to provide the Service.

20.2 readech reserves the right to hold funds beyond normal distribution periods for transactions it reasonably deems suspicious or for accounts conducting high transaction volumes.

20.3 If readech closes the Company’s account, readech shall notify the Company in writing and pay all unrestricted funds held, after exercising any right of set-off for sums due and owing to readech.

21. Assignability

Neither party may transfer any rights or obligations under this Agreement without the prior written consent of the other party. This Agreement shall be binding upon and inure to the benefit of the parties, their legal representatives, successors, and permitted assignees.

22. Credit Report

The Company agrees that readech may obtain and review the Company’s credit report for the sole purpose of assessing the Company’s fitness to hold a readech account and/or its ability to use the Service.

23. Representations

Each Party represents to the other that:

It has all requisite power and authority to enter into this Agreement;
It holds all rights, licences, permits, and authority to perform its obligations hereunder;
The execution and performance of this Agreement are duly authorised;
This Agreement has been duly executed and is a valid and binding obligation; and
Execution and performance do not conflict with its constituent documents, any other agreement, or any applicable law.

24. Information, Data Security and Protection

24.1 Where either Party receives Personal Data from the Customer, it shall fully comply with the Personal Data Protection Act 2010 and only process such data to fulfil its obligations under this Agreement.

24.2 Each Party shall indemnify the other for any breach of PDPA 2010 that renders the latter liable for costs, fines, claims, or expenses.

24.3 Each Party shall take all reasonable steps to ensure that its partners, contractors, employees, and agents comply with this clause.

24.4 The Company must ensure the security and confidentiality of Customer information at all times and protect it from unauthorised access, including compliance with any data security standards prescribed by PayNet and Bank Negara Malaysia.

24.5 In the event that the Company’s systems are compromised, the Company shall be fully responsible for resolving all outstanding issues and liabilities to the satisfaction of PayNet and the Acquirer Bank.

24.6 The Company shall forthwith notify readech upon becoming aware of an ADC Event or Potential ADC Event and shall take necessary actions to resolve the event unless otherwise directed in writing by PayNet.

25. Taxes

25.1 All taxes and charges imposed by the Government of Malaysia or any competent authority in respect of the Service or this Agreement shall be borne by the Company, which shall reimburse and indemnify readech for the same.

25.2 In the event of introduction of new laws or amendment of existing laws in Malaysia affecting the Service, the parties shall comply and pay at the rate determined by the Government of Malaysia.

26. Notices

26.1 All notices shall be in writing in the English language and shall be delivered by hand, pre-paid certified or registered mail, facsimile, or electronic mail to the address of the respective Party.

26.2 A notice shall be deemed served:

If delivered by hand, upon delivery;
If sent by mail, after three (3) Business Days of postage;
If sent by facsimile, one (1) hour after transmission during business hours, or at the opening of business on the next Business Day; or
If sent by electronic mail, twenty-four (24) hours after dispatch.

27. Force Majeure

27.1 Neither party shall be liable for any delay or failure in performance if such delay or failure is due to a Force Majeure event, being any unforeseeable event or cause not within the control of the affected party which that party is unable to prevent, avoid, or remove.

27.2 Force Majeure events include but are not limited to war, hostilities, armed conflict, riot, acts of terrorism, nuclear explosion, radioactive contamination, natural catastrophes (including earthquakes, floods, and inclement weather), and pressure waves from aircraft. Force Majeure shall not include economic downturn, insufficient funds, or lack of financing.

27.3 The affected party shall give written notice of a Force Majeure event within seven (7) days, specifying the details and anticipated duration.

27.4 The parties shall diligently seek to mitigate the effects of the Force Majeure event and resume full performance as soon as practicable.

28. Waiver

28.1 Any waiver of rights under this Agreement shall not be valid unless in writing and signed by a duly authorised representative of each Party.

28.2 Waiver by either party of any breach shall not be construed as waiver of any other breach of the same or any other term.

29. Governing Law

This Agreement is governed by, and shall be construed in accordance with, the laws of Malaysia, and the parties hereby submit to the non-exclusive jurisdiction of the Courts of Malaysia.

30. Time

Time is of the essence of this Agreement.

31. Costs

Each party shall bear its own solicitors’ costs in respect of this Agreement. Stamp duty shall be borne by the Company.

32. Entirety

This Agreement sets forth and constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior promises, representations, warranties, or other statements whether written or oral. This Agreement may not be released, discharged, supplemented, amended, varied, or modified except by an instrument in writing signed by both parties.

33. Severance

Any term found to be illegal, void, or unenforceable shall be severed from this Agreement without invalidating the remaining provisions, which shall remain in full force and effect.

34. Inconsistency

In the event of any inconsistency between any provisions in this Agreement and the PayNet Standards, the PayNet Standards shall prevail unless this Agreement explicitly provides to the contrary.

35. Survival

The following clauses shall survive any expiration or termination of this Agreement: Clause 9 (Disclaimer and Limitation of Liability), Clause 10 (Indemnification), Clause 13 (Receiving Payments), Clause 16 (Inspection at the Company’s Premises), Clause 17 (Confidentiality and Intellectual Property Rights), Clause 20 (Remedies and readech’s Right to Collect from the Company), Clause 24 (Information, Data Security and Protection), and Clause 29 (Governing Law).

Banned and High Risk Industries

The following is a non-exhaustive list of industries that are prohibited or classified as high risk under the PayNet Standards, Bank Negara Malaysia guidelines, and readech policy. This list may be updated from time to time.

Strictly Prohibited (Banned) Industries

Adult entertainment, pornography, and sexually explicit materials or services
Narcotics, illegal drugs, controlled substances, and drug paraphernalia
Online or offline gambling, sports betting, online casinos, and lotteries (unless licensed by the relevant Malaysian authority)
Counterfeit or replica goods
Firearms, ammunition, explosives, and weapons
Pyramid schemes, Ponzi schemes, and multi-level marketing without proper regulatory approval
Child exploitation materials
Terrorist financing and any entity listed under applicable UN Security Council Resolutions
Entities dealing with Specified Persons (Israel and associated entities)
Unlicensed money services businesses

High Risk Industries (Enhanced Due Diligence Required)

Digital goods and instant downloadable items (IDD cards, mobile reloads, digital media, software)
Event ticketing (seminars, conferences, concerts, sports events)
Fast Moving Consumer Goods (pharmaceuticals, consumer electronics, packaged food and beverages)
Travel and tour packages
Cryptocurrency exchanges or digital asset trading platforms
Forex trading, binary options, and financial derivatives
Pawnshops and second-hand goods dealers
Prepaid and gift card services
Subscription-based services with recurring billing
Non-profit organisations and charities (requiring additional documentation)

Note: Companies operating in High Risk Industries must submit enhanced verification documents to readech within three (3) Business Days of each transaction and comply with all additional requirements as communicated by readech, PayNet, or the Acquirer Bank.