1. Purpose & Regulatory Alignment
This Risk & Compliance Policy outlines the rigorous controls, identity verification, anti-money laundering (AML), and transaction monitoring protocols implemented by MerchFlow ("Platform").
This document demonstrates our commitment to operating as a responsible digital creative design studio and professional digital services provider in full compliance with the guidelines established by the Reserve Bank of India (RBI), the Prevention of Money Laundering Act (PMLA), 2002, the Information Technology Act, 2000, and our acquiring Payment Gateway partners (Cashfree, Razorpay, Easebuzz, Instamojo).
2. Business Model Overview
MerchFlow delivers bespoke digital creative services and professional design solutions, enabling brands, startups, and growing enterprises to access:
- Brand Identity & Logo Design Suites (vector masters, typography, brand guidelines)
- Website & Mobile App UI/UX Design Systems (Figma prototypes, design tokens)
- Social Media Creatives, Ad Kits & Visual Marketing Assets
- Commercial Video Editing, Motion Graphics & Visual Content
- Full-Spectrum Enterprise Branding & Dedicated Creative Studio Retainers
3. Merchant Onboarding & KYC Verification
To maintain a safe, fraud-resistant environment, all merchants must undergo risk-based onboarding before payouts can be activated:
- Identity Verification (KYC): Collection and automated verification of Government-issued IDs (PAN Card, Aadhaar, Passport, or Corporate Certificate of Incorporation / GSTIN).
- Bank Account Validation: Penny-drop or automated penny-less name-match verification ensuring bank accounts match the merchant's legal identity.
- Risk Profiling: Merchants are classified into Low, Medium, or High-risk tiers based on historical volume, ticket size, and product category.
- Sanctions & Watchlist Screening: Real-time cross-referencing against global and national financial sanction lists (OFAC, FATF, UNSC).
4. Prohibited & Restricted Business Categories
MerchFlow maintains a strict, zero-tolerance blacklist. The following goods and services are strictly prohibited from utilizing the platform:
- Adult Content & Services: Pornography, escort services, adult novelties, and sexually explicit digital media.
- Gambling & Betting: Online casinos, sports betting, lottery schemes, and speculative fantasy gaming platforms.
- Financial & Investment Schemes: Multi-level marketing (MLM), pyramid schemes, get-rich-quick programs, unregistered advisory, cryptocurrency trading, and forex speculative schemes.
- Counterfeit & Copyright Infringement: Pirated software, unlicensed digital courses, cracked keys, or third-party trademark infringements.
- Controlled Substances & Weapons: Drugs, pharmaceuticals, tobacco, e-cigarettes, firearms, ammunition, and hazardous materials.
- Hate Speech & Illegal Acts: Content promoting harassment, violence, defamation, or illegal activities.
5. Transaction Monitoring & Anti-Money Laundering (AML)
MerchFlow deploys automated rule-based and AI-powered transaction monitoring:
- Velocity Limits: Limits on transaction frequency and maximum single-payment amounts for newly onboarded workspaces.
- Anomaly & Geolocation Detection: Detection of sudden volume spikes, abnormal card brand concentration, or suspicious IP routing.
- Suspicious Activity Reporting (SAR): Automated escalation and temporary freeze of funds upon detection of structured transactions or smurfing patterns.
6. Payment Gateway Processing & Dispute Management
MerchFlow collects payments directly via licensed Payment Gateways (PG) for digital creative and design services rendered:
- Chargeback Standard: Accounts must maintain a chargeback ratio below 1.0% in accordance with card association regulations.
- Evidence Submission: In case of disputes, proof of electronic service delivery (Figma project share links, vector master archive delivery logs, client sign-offs) is submitted to the acquiring bank within 5 business days.
7. Grievance Redressal & Compliance Officer
In compliance with the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021: