Applicable to ZAR area only
The Binance P2P Shield Merchant Program is created to provide a safer and faster way of trading, allowing cryptocurrency enthusiasts to complete transactions with greater ease of mind.
Each shield merchant has been reviewed by the Binance P2P team. Shield merchant status can be earned only by verified block merchants who comply with certain requirements, including their past transaction behaviors. Only after passing the screening can they become a shield merchant.
When a shield merchant trades with a user selling cryptocurrencies on Binance P2P Platform, if the bank account of the seller is frozen after receiving the fiat payment due to reasons attributable to the merchant, a maximum of 2% of the total order amount will be compensated to the user.
1. The shield merchant must have a total of 30,000 USDT security deposit on the platform.
2. The account holder applying to become a shield merchant (“the applicant”) must be a Binance P2P verified block merchant for more than 90 days. The number of unique trading counterparties must be at least over 2,000 since the creation of the P2P verified block merchant account.
3. There is no negative feedback from counterparts on their bank accounts being suspended within 90 days of completing the transaction with the applicant.
4. The applicant has not been investigated or restricted by relevant public authorities in the past.
5. The applicant has no serious violation or multiple violations of "Binance P2P Merchant Guidelines" and "P2P User Transaction Policy" and other relevant provisions, to the extent known by Binance.
6. The applicant has passed the risk control department's risk assessment of the account (whether there are risk control problems in this account or related accounts, such as cross-platform transactions, high-risk withdrawals and triggering Freeze, etc.)
7. The applicant has passed the comprehensive assessment of the account by the merchant’s management department and other service departments (refer to the merchant’s relevant account’s violation records, complaints records, time-limited records of cooperation and other indicators)
8. The applicant has not had any bad or negative behavior that damages Binance’s brand reputation.
9. The applicant agrees to abide by and agree to the "Shield Merchant Protection Program Rules".
10. Other declaration conditions that Binance considers necessary to meet, are subject to separate notification.
Please note:
● We have an extensive review process and filling out the form does not guarantee acceptance as a shield merchant. Our team will review your application and reach out within a few days if there are further questions.
● Binance, at its discretion, evaluates and qualifies merchants for the Shield Merchant Protection Program.
1. Compensation offered by Shield Merchants
For eligible orders, the shield merchant will be required to pay the user (seller) a compensation equal to 2% of the order amount under the circumstances described in Section 2 below. The compensation amount in USDT should be calculated based on the order amount that caused the account to get frozen, using the real time USDT announcement price on the date the compensation was approved by the P2P team, and the maximum compensation for each order is limited to 2% USDT.
In case the shield merchant fails to make compensation payment as required under the Shield Merchant Protection Program (see below <Shield Merchant Compensation Process>) the respective amount will be deducted directly from its security deposit to pay the seller. If the security deposit of the shield merchant is not sufficient to cover the full amount due to multiple claims, the security amount will be distributed among users that (sellers) have an open claim, paid in proportion to the amount paid for each order until the full amount of the security deposit is deducted.
The shield merchant is solely liable to make any compensation payment as part of Shield Merchant Protection Program. Binance never makes any compensation or payment in any other forms to the users (sellers) due to account freezes and its role is limited to facilitating the transaction by releasing digital assets once the offline fiat currency exchange has been confirmed by both parties.
2. Conditions to benefit from Shield Merchant protection program
The criteria for shield merchant protection are as below, and the final decision is based on the sole discretion of the Binance P2P team.
(1) It has been confirmed by the judicial authority that the seller's bank account used for receiving payments is frozen for a period of time longer than 7 days and the transaction amount is put on lien as a result of the payment made by the shield merchant for the order.
(2) The judicial authority issued a judicial document to Binance P2P platform to retrieve the seller's order record, and the buyer of the order was a shield merchant. I.e,
A. Cybercrime complaint report with the FIR number mentioned on it.
B. Bank account freeze notice/ email from the bank. C. Video verification of the online banking portal of the victim.
(3) The seller’s bank account was suspended from receiving payments and the account has been used only for trades on the Binance P2P platform for the past 90 days and only with the shield merchant.
(4) The Binance P2P platform has confirmed that the merchant's payment account has been frozen for more then 7 days by the same judicial authority as the user's account.
(5) The Binance P2P platform has confirmed that other sellers who have traded with the same shield merchant had their receiving accounts frozen for 7 days and the transaction amount is put on lien as a result of the payments made by the shield merchant for the orders by the same judicial authority
(6) Other situations that can prove that the seller's receiving account has been frozen for 6 months or more due to the merchant's payment for the order.
To benefit from the protection offered by P2P Shield Merchant Program, at least 2 of the above conditions must be met and an application must be submitted within 30 days after the order is completed (example: if an order was completed on July 1, 2022, and the user should contact the platform before July 30, any application submitted as of the 31st day of the order completion time will not be paid out.) Upon the final determination of the Binance P2P that the user's (seller's) receiving account has been required to be frozen for 7 days and the transaction amount is put on lien due to the payment of order funds by the shield merchant, the shield merchant shall proceed with payment of complete the compensation to the seller in accordance with the standards in paragraph <Compensation Offered by Shield Merchant> and <Shield Merchant Compensation Process>.
All independent judgments of the Binance P2P platform are based on the feedback materials provided by the sellers to the platform, the materials provided by the merchant to the platform or any other material or information that may be shared with Binance P2P platform by the judicial authorities. Binance P2P Platform is not responsible for the collection and provision of any evidence, nor does it undertake to make any compensation or payment in any other form to the user (seller) or
undertakes the obligation to initiate the payment process for and on behalf of shield merchants.
If the merchant loses the eligibility conditions and ceases to be a shield merchant as a result, it shall continue to be bound by Shield Merchant Protection Program Rules for all orders completed before the cancellation of its Shield Merchant status.
3. Situations not covered under the Shield Merchant protection
The following situations are not covered under the Shield Merchant protection
(1) The freezing of receiving accounts of the seller that occurred before the launch of the Shield Merchant Protection Program
(2) Sellers who fails to submit written feedback to the Binance P2P platform for more than 30 days from the date of order is completed
(3) Any additional funds that the seller may have sent to the same account for any reason whatsoever after the freeze are not covered under the Shield Merchant Protection Program.
(4) Shield merchants are required to pay compensation only to the receiving account used by the seller in the transaction order with the shield merchant, and do not pay any compensation to the other accounts held by the seller.
Step 1: The seller finds out that the receiving account he/she uses to trade on the Binance P2P platform has been frozen and or the balance in his/her account is put on lien.
Step 2: Seller verifies the freezing period from the account opening institution of the receiving account. If the freezing period is 7 days, verify the status after 7 days.
Step 3: If the receiving account is still frozen after 7 days for an undefined period, please contact Binance Online Customer Service (P2P Support) for feedback and fill in the " User Frozen Investigation Form"
Step 4: Binance P2P will verify based on < 2. Conditions to benefit from shield merchant protection program > to determine whether the freezing of the seller's receiving account is due to the payment behavior of the shield merchant.
Step 5: If Binance P2P platform comes to the conclusion that freezing of the receiving account is caused by this shield merchant, then the shield merchant will be prompted to pay compensation to the user (seller) within 5 working days after being notified. If Binance P2P platform comes to the conclusion that the freezing of the receiving account is not related to payment made by the shield merchant, then the user (seller) will be notified that he/she is not eligible for the compensation offered by Shield Merchant Protection Program.
If the seller has objections to the result, it is possible to provide new proof within 7 working days after receiving the notification. Otherwise, the decision will be deemed final.
Step 6: To carry out the payout process, the shield merchant is required to make an additional deposit of funds within 5 working days after being notified and Binance P2P team will conduct asset transfer to the user‘s (seller’s ) Binace account. If the shield merchant does not make any payment within the specified time, the Binance P2P team will notify the shield merchant that the respective amount will be deducted directly from the security deposit to pay the seller. At the same time, any advertising posting privileges of the shield merchant will be suspended until the 30,000 USDT security deposit is made up.
In case the security deposit of the shield merchant is not sufficient to cover the full amount due to multiple claims, the security amount will be distributed among users (sellers) having an open claim, in proportion to the amount paid for each order until the full amount of the security deposit is deducted.
The Shield Merchant status will be terminated in the following cases:
1. The Shield Merchant status will be terminated and the merchant’s Binance account will be suspended in the following two cases:
(a) In case the shield merchant fails to comply with its obligation to pay compensation to the user (seller) as part of Shield Merchant Protection Program. Binance P2P will conduct the compensation from its security deposit in such a case.
(b) In case the shield merchant’s security deposit is not sufficient to cover open claims and does not make up the additional compensation amount.
(c) In case the shield merchant fails to make up his security deposit in 3 days after deduction of a compensation, any remaining security deposit will be refunded within 30 days if there are no open claims from any users (sellers). The shield merchant will also be blacklisted in this case and cannot apply to become a P2P merchant again.
(d) In case the shield merchant requests termination of its status by submitting an application to the platform at least 1 working day in advance, the termination will be processed after the platform's review and approval. Any remaining security deposit will be refunded within 14 days if there are no open claims from any users (sellers). You can re-apply to become a shield merchant again after 60 days from the date of termination.
(e) In case a shield merchant causes freezing of the user (seller) accounts, Binance P2P team will evaluate whether the shield merchant can retain its status based on the platform's investigation results.
Binance reserves the right in its sole discretion to amend or change the requirements or cancel this program at any time and for any reasons.
Risk Warning: Digital asset prices can be volatile. These fluctuations may affect the value of digital assets you buy or sell on the Binance P2P platform, which may be lower or higher at the time of and after completion of the transaction. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. By using the Binance P2P platform you trade digital assets directly with other users. Binance facilitates transactions by releasing the digital assets once the offline fiat currency exchange is confirmed by both parties. The trading amount, price and conditions of each advertisement are set by the user publishing it. All payments are final upon completion, unless otherwise required by law. Binance has neither the right nor the obligation to resolve any disputes arising from a completed payment. Binance is not liable for any loss you incur in connection with a completed payment. Not financial advice. For more information, see our Terms of Use and Risk Warning.
