For Merchants

Merchant Compliance & Risk Control Policy


1. Purpose

This policy outlines the compliance and risk control requirements for all merchants operating on the XOOBAY cross‑border e‑commerce platform. It ensures that merchant activities are legal, transparent, and aligned with international trade regulations, protecting both buyers and sellers.

 

2. Merchant Qualification & Onboarding

2.1.  Business License Verification: Merchants must provide valid incorporation documents, tax registration certificates, and beneficial ownership declarations.

2.2.  KYC/AML Screening: All merchants undergo identity verification and anti‑money laundering checks.

2.2.  Background Checks: XOOBAY screens merchants against sanction lists, fraud databases, and intellectual property violation records.

2.4.  Evidence Required: Certified copies of licenses, tax IDs, compliance declarations.


3. Prohibited & Restricted Items

Merchants are strictly prohibited from listing or selling the following categories of goods:

3.1.  Counterfeit or pirated products

3.2.  Weapons, explosives, or hazardous materials

3.3.  Controlled substances (e.g., drugs, tobacco, alcohol in restricted jurisdictions)

3.4.  Products violating intellectual property rights

3.5.  Items banned by customs authorities in target markets

Evidence Required: Internal compliance manual, prohibited items list, references to customs authority regulations.

 

4. Product Scanning & Monitoring

Merchants must implement both automated and manual controls to prevent illegal listings:

4.1.  Automated Scanning: Keyword filters and image recognition tools to detect restricted items.

4.2.  Manual Review: Compliance officer approval for high‑risk categories.

4.3.  Evidence Required: SOPs for product review, system logs/screenshots of scanning tools.


5. Business Practice Controls

Merchants must maintain internal systems to ensure ethical and compliant operations:

5.1.  Supplier Vetting: Verification of upstream suppliers for authenticity and compliance.

5.2.  Transaction Monitoring: Systems to flag abnormal payment patterns or refund rates.

5.3.  Audit Trails: Logs of product sourcing, listing, and sales.

5.4.  Evidence Required: Supplier contracts, audit reports, ISO certifications (e.g., ISO 9001, ISO 37001).


6. Dispute & Refund Handling

Merchants must adhere to XOOBAY’s standardized dispute and refund framework:

6.1.  Refund SLA: Refunds processed within 7–14 days of approval.

6.2.  Escalation Process: Merchant → XOOBAY → Arbitration/ODR.

6.3.  Evidence Required: Refund policy documents, customer service SOPs, dispute resolution records.


7. Customer Service Standards

Merchants must provide responsive and transparent customer service:

7.1.  Response SLA: Customer inquiries answered within 24–48 hours.

7.2.  Multilingual Support: English and Chinese required; additional languages encouraged.

7.3.  Transparency: Merchant ratings, complaint history, and compliance badges published.

7.4.  Evidence Required: Customer service logs, training manuals, rating dashboards.


8. Compliance Audits & Enforcement

8.1.  Quarterly Audits: XOOBAY conducts periodic reviews of merchant practices, refund ratios, and product legality.

8.2.  Evidence Submission: Merchants must provide compliance documentation upon request.

8.3.  Sanctions: Non‑compliant merchants may face suspension, deposit forfeiture, or removal from the platform.

 

9. Supporting Evidence

Merchants must submit the following documents during onboarding and periodic audits:

9.1.  Business licenses and tax IDs

9.2.  Prohibited items list and compliance manual

9.3.  Product scanning SOPs and system logs

9.4.  Supplier contracts and audit reports

9.5.  Refund and dispute resolution policies

9.6.  Customer service training manuals and logs

 

10. Policy Enforcement

XOOBAY reserves the right to suspend, terminate, or penalize merchants who fail to comply with this policy. Compliance is mandatory for continued participation in the platform.