For exchange offices
Rules and procedures for using WebMoney Transfer for exchange operations using financial instruments
The given document is created in accordance to WebMoney Transfer Code, «Agreement on Property Rights Transfer» and Anti-Money Laundering Agreement. It establishes rules and procedures for performing exchange operations with any third-party accounting or payment systems, including cash and bank exchanges (wires to/from bank accounts) as well as requirements for opening and ceasing exchange operations by WebMoney Transfer users.
1. General Terms
1.1. The Document hereby sets forth the following terms:
"Exchange operations" - actions connected to purchasing, selling and exchanging third-party financial instruments, including cash and bank exchanges, from personal funds and (at your own) costs;
"Exchange Service" – a service, created by WebMoney Transfer User in order to perform exchange operations publicly for WebMoney registered Users.
1.2. Exchange operations involving cash funds in local or foreign currency from personal funds in your own name carried out as a business activity (that is on commercial basis) can be performed only by users, who have undergone an identity check and obtained so called Merchant Passport. Users offering exchange services as business activity should apply for a Merchant Passport by registering at Exchange Services category of the Megastock Catalogue.
1.3. Exchange Services have no right to attract funds for their exchange operations from other third party sources, that including public calls, advertising, borrowing, trading and other means on conditions of urgency, chargeability and recurrence, as such funds cannot be used for arranging an exchange.
1.4. It is prohibited for an Exchange Service to:
- attract title units and financial means from third parties on conditions of urgency, chargeability and recurrence;
- receive title units and financial means as an advance payment based on exchange rate agreed earlier than 12 hours before the exchange operation;
- offer any other operations other than exchange;
- perform exchange operations for the unidentified or third parties;
- Perform exchange operations without accompanying the transaction with appropriate payment reference/comment, describing the source/reason/addressee (recipient) of the exchange.
1.5. For activities, breaching the terms of the given document, the User is hereby subject to the liabilities, stipulated by WebMoney Transfer Code of Conduct, namely:
- performing commercial exchange operations without registering as a Merchant at the Exchange Services category of the Megastock Catalogue leads to temporary account (WMID) suspension of the Exchange Service and any other users, involved in its activity/functioning until full elimination of the rules' breach and compensation to the affected party upon a WebMoney Arbitration decision;
- performing commercial exchange operations for the unidentified or third party and violating the payment reference (comment) field requirement leads to temporary account (WMID) suspension of the Exchange Service and any other users, involved in its activity/functioning until full elimination of the rules' breach and compensation to the affected party upon a WebMoney Arbitration decision;
- bringing in (attracting), public trading or borrowing of funds from any external financial means or instruments for performing a commercial exchange operation on conditions of urgency, chargeability and recurrence leads to temporary account (WMID) suspension of the Exchange Service and any other users, involved in its activity/functioning until full elimination of the rules' breach and compensation to the affected party upon a WebMoney Arbitration decision.
2. Starting exchange business by WebMoney users
2.1. WebMoney Transfer users have a right to offer exchange services to other users of WebMoney Transfer system and to buy, sell or exchange third-party financial instruments in strict compliance with these Rules.
2.2. To start an exchange business, a WebMoney Transfer user shall obtain a Merchant status (a MERCHANT WEBMONEY PASSPORT).
2.3. WebMoney Transfer users are obliged to submit their exchange websites to the MegaStock catalogue (Exchange Services category) to be able to exchange WebMoney units to third-party financial instruments.
2.4. When submitting their exchange websites to MegaStock, WebMoney users shall provide the following information:
- request to add the website to the Exchange Services category submitted via the MegaStock registration interface;
- description of currencies and exchange direction;
- description of sources and API of third-party financial instruments offered for exchange;
- exchangers performing transactions with cash must provide an electronic copy of original or legally certified copies of the following documents: lease contract or state title registration certificate for occupied premises (or another document confirming the right of property for occupied premises)
Pursuant to the WebMoney Code, users are personally liable for the accuracy and validity of the information and documents provided.
2.5. If the information provided is not complete or not in compliance with the Rules, the registration request will be denied by the MegaStock administration. The reason for the denial will be provided.
2.6. The decision of approval or denial shall be made within 20 days after the registration request was submitted.
2.7. Should the exchange service provider go out of business, he is obliged to notify the MegaStock administration at least three days in advance in order to remove the exchange website from the catalogue.
2.8. Users must notify the MegaStock administration in writing within three days if any of the following changes occur: business address, URL, list of rendered services.
If the replacement in exchange business owners occurs (and another Merchant Passport is used), the WebMoney user has to submit the exchange website to the MegaStock catalogue anew in compliance with these Rules.
2.9. WebMoney user has the right to open several exchange services per one WMID. When a new exchange service is opened, the user is obliged to submit it to MegaStock and link it to new WM purses of the same WMID.
3. Terms and conditions for exchange service businesses
3.1. Exchange service is obliged to publish the following information on its website. The information must be easy-to-find and understandable.
- business name of a legal entity or name of an individual — the owner of the exchange service;
- opening hours;
- MegaStock registration number and logo provided during the registration with MegaStock;
- information for customers and service procedure;
- exchange services selling and buying WebMoney units online or offline must obligatory publish the Risks Acknowledgement on their websites (part and parcel of the Agreement on Property Rights Transfer by Means Of Digital Units, Annex III).
3.2. Exchange websites must contain accurate, valid and unambiguous information regarding exchange rate and terms. All exchange transactions should be conducted as per published exchange rates and terms. Websites should contain the description of exact steps customers should take to complete the exchange.
3.3. Exchange services are obliged to obtain a permission to start an exchange business by sending a preliminary request to API provided by the System. Such a request should transmit prospective details of the transaction party. The details are fixed by X19 interface.
3.4. Exchange providers must store and provide immediately upon request of the WebMoney Transfer Arbitration Service the following information on title units exchange transactions:
- Exchange transactions of title units to live currency (both cash-in and cash-out) — passport details of exchange participants, including electronic copies of their identification documents;
- wire transfers — full details of the bank transfer on each exchange transaction;
- transfer of funds via money transfer systems which do not require opening an account (Western Union, MoneyGram, etc.) – full transfer details on each exchange transaction;
- Transfer of funds for bank card replenishment via various acquiring or billing systems without using a bank transfer – full details of a bank card and its owner (the full name of a card owner, the bank name, the card type, the card number and other card details).
- Exchange transactions of title units to live currency — a passport number and a full name;
- Wire transfers – the full name of the receiver (Sender or Receiver of the payment, the bank branch name and location or the Bank Identifier Code, the account number either of the payment Sender or Receiver;
- Transfer of funds via money transfer systems which do not require opening an account (Western Union, MoneyGram, etc.) – bank details of the receiver (a full name, a passport number, a unique transfer identifier, Receiver/Sender locations, etc.);
- Transfer of funds for bank cards replenishment via various acquiring or billing systems without using a bank transfer – the payment information (a full name, a card number, a bank name);
- Exchange of title units to means of various electronic payment systems or online payment systems – the receiver details (the name of the system, an account or e-wallet number, the exchange type and amount). In this case, an exchange provider must verify the account details of the account within an external system, provided by the WebMoney Passport owner participating in the exchange by conducting preliminary inquiries via interfaces provided by the System.
3.5. In order to prevent and combat illicit trade, financial fraud, money laundering and legalisation of funds obtained by illegal means WM-exchange providers shall not permit exchanges or advertise in any way websites and resources, commencing exchange of financial or other payment instruments, the accounting system of which does not ensure proper verification of the owner identity. The ban on advertising also includes:
- Support by any means of websites, modified copies of their own resources or similar domains, which may be misleading to system users regarding the integrity of operations;
- Publications of links to the above-mentioned websites on their resources.
3.6. Exchange Services can use X2 interface for their exchange operations only using onlyauth=1 parameter (that is to transfer funds only to the pending recipient). This measure is designed to avoid erroneous transfers from the Exchanger's purse). For example, if a user has indicated wrong purse number, belonging not to him but to a shop that accepts funds only via merchant interfaces and who prohibits any direct payments via x2, funds will not leave the Exchanger's purse.
3.7. Exchange services should control purposes of incoming and outgoing payments in accordance with the rules provided in the preceding clauses. Means of control depend on the used technology:
- when X1, X2 interfaces are used, an exchange services composes a notice, and third parties can not change it;
- when the merchant.webmoney.com interface is used, parameter LMI_PAYMENT_DESC is transmitted together with the preliminary request and with the request for payment notification. A customer can check both before and after the payment (via Result URL) whether there were any changes made after the payment form had been issued and till the moment of payment.
3.8. Anyway, regardless of the method you accept or make payments, the purpose of payment can be controlled in the following ways: Automated method - via X3 interface, Manual method - via reports on the history of transactions (report.wmtransfer.com) send to your WM Keeper. Special attention should be given to the significant payment details. E.g. if the payment is processed in a Russian mould for "Петрова Елена Николаевна", no other languages moulds can be used. If the payment is made into a settlement account or a card or into a personal account with third parties, and these details only contain numbers, only numbers should be used in the payment reference (comment field) as well. Significant payment details should be 100% identical to those received or transferred to third parties.
3.9. When adding funds into the System (when selling WM currency to the customers) via exchange options, listed in clause 3.4 of the given document the Exchange Service is allowed not to collect and store data in cases, when exchange limit doesn't exceed an equivalent of USD 2000 per 24 hours per one WMID.
3.10. Exchange services, regardless of their location, should independently and at own discretion register with local tax authorities, keep tax reporting and apply for a license or a special permit if required.
3.11. This item contains information on how Exchange services should use financial and payment instruments that do not ensure proper KYC procedures and customers identification and that "store" the instrument value directly on their own unique anonymous (alias) details. Here is the list of such instruments: instruments derived from WebMoney-currencies - Paymer checks, WM-cards, WM notes (hereinafter referred to as the prepaid instruments of the first group), instruments of the third parties uKash, Paysafecard, cashU or virtual unidentified (anonymous) bank cards, prepaid cards (that can be used for the payment to any third party or for cash withdrawal, by non-cash way through the issuer or its agents), etc. (hereinafter referred to as the prepaid instruments of the second group).
- It is forbidden to sell or to buy the prepaid instruments of the first group from the third parties for WM-currencies. Such transaction does not make any economical sense, as users of the System can always issue or settle such instruments themselves, or use them for payment via WebMoney.Merchant.
- It is forbidden to sell to the third parties the prepaid instruments of the second group for WM-currencies (to withdraw WM-currencies by exchanging them for the prepaid instruments of the second group) unless the approval from the Abitrage has been received. The System users can purchase similar instruments for WM-currencies on the website Plati.ru (that have agreed the procedure and terms of sale of such instruments for WM-currencies with the System) and directly via the different System services, e.g. top-up.wmtransfer.com.
- It is allowed to buy the prepaid instruments of the second group from the third parties for WM-currencies (the exchange of the prepaid instruments of the second group for WM-currencies), funds can be added to the System on the same terms as when adding cash to the System.
- It is allowed to sell to the third parties the prepaid instruments of the first group for cash, bank transfer or other payment or financial instruments (except those listed as prohibited in the Appendix 1) only if the terms of sale are negotiated with the corresponding guarantor WM-currencies or with the instrument issuer. If required by the guarantor the agreement should be concluded and points of sale should be posted on Geo.WebMoney and all other requirements of the guarantor should be met in order to protect the System users.
- It is allowed to buy the prepaid instruments of the first group from the third parties for cash on the same terms as when buying WM-currencies for cash from the third parties. This means that the seller should attend the place of purchase, and provide the identifying document, and the buyer should make a copy of such document. Due to the fact that the prepaid instruments of the first group do not ensure proper KYC procedures and customers identification, the purchase of such instruments is only possible in the presence of the third party, and on condition that the identifying documents of the third party coincide with the details of the prepaid instrume.
4. Refusal to verify (register) an Exchange Service with WebMoney
4.1. An Exchange Service will be refused a registration if:
- applicant provides inaccurate information;
- applicant doesn't provide information required by the present document. Once information is provided the application will be reconsidered on common basis;
- there are open claims against Applicant with WebMoney Arbitration.
Refusal to register an Exchange Service will be provided in writing by MegaStock Administrator.
Refusal to register an Exchange office can be disputed by WebMoney Arbitration.
5. Recall of the Exchange Service registration
5.1. An Exchange Service can be removed from the MegaStock catalogue on the following basis:
6. Termination of registration
6.1. MegaStock Administrator can terminate registration in case of:
- applicant doesn't follow WebMoney Code and the present Rules;
- infringement of the exchange procedures;
- Exchange Service carries out activity different from the declared exchange activity;
- transfer of control to the third parties;
- infringements of terms and order of functioning of exchange service;
- delayed submission or failure to submit accounting information on operations with the third parties;
- legal decision prohibiting Applicant from exchange business;
- detection of inaccurate information in the payment details or detection of inaccurate information in transaction recording;
- failure to meet requirements of the Administrator or Arbitration, or repeated infringements on which preventive measures have been taken;
- no exchange activity within three successive months;
- address of the exchange office is different from the address provided during registration;
- confirmation of the facts stated in complaints and claims of participants of the System.
List of the Systems/financial instruments prohibited for exchange operations in any direction:
- AlertPay (alertpay.com)
- AdvCash (advcash.com)
- Bitcoin (bitcoin.org)
- c-gold (c-gold.com)
- DeltaKey (deltakey.ru, deltakey.net)
- EDram (idram.am)
- GlobalMoney (globalmoney.ua)
- IntellectMoney (intellectmoney.ru)
- OKPAY (www.okpay.com)
- Paxum (www.paxum.com)
- Payeer (payeer.com)
- Pecunix (pecunix.com)
- PerfectMoney (perfectmoney.com, perfectmoney.is)
- W1 (www.walletone.com)
- Z-PAYMENT (z-payment.ru)