Account Termination & Funds Withheld - Formal NFO Case Lodged (***)

I am documenting my experience as a Payfast merchant for the purpose of informing other business owners. This is a factual account of events.

1. Termination Notice & Fund Access: On 8 January 2026, I received a formal "Notice of Termination" for my merchant account (ID: ***6). The termination was effective immediately. Simultaneously, all access to the merchant dashboard and the funds contained in the account was disabled.

2. Attempts to Seek Clarification & Resolution: On 8 January, I sent formal emails to the provided compliance address disputing the termination and requesting the release of funds. I received no response to these emails.

- On 8 January, I contacted Payfast via telephone on the number listed on their document. The receptionist noted the issue and promised a callback. No callback was received.

- On 9 January, I called again. The customer service representative I spoke with stated they could not assist and that I must sit and wait for the compliance team to contact me.

- On 10 January, I received an unsolicited call from a Payfast representative. This person apologized for the situation and specifically promised escalation and that a manager would call me by 12:00 on Monday, 12 January, to resolve the matter.

- On 12 January, the promised callback did not occur.

3. Outcome & Current Status: Due to the lack of communication and the continued withholding of funds, I was left with no alternative but to lodge a formal complaint with the National Financial Ombudsman of South Africa (NFO) on 13 January 2026. The case reference is R5Q40G8M. All funds remain inaccessible.

4. Summary for Other Businesses: My experience indicates that Payfast may:

- Terminate service and restrict access to funds without prior discussion.

- Provide contradictory information (termination notice vs. account "under review").

- Not respond to formal written communication from merchants.

- Make specific verbal commitments regarding resolution timelines that are not honoured.

This sequence of events has caused significant operational and financial disruption to my business. I am sharing this information so other South African SMEs can make a fully informed decision when selecting a payment service provider, considering both functionality and procedural risk.