A Tailored approach to South Africa’s Fuel Industry

Posted by TradeSafe on Sun, Jul 15 2018 11:24:08

All the parties are also required to submit documentation to TradeSafe (for regulatory and compliance purposes) and have a TradeSafe user account. We will require the following documentation for regulatory and compliance purposes:

  • Copy of your wholesale license
  • Copy of company registration
  • Proof of bank account

Please send the documentation to and we will let you know as soon as the verification procedures have been performed. 

TradeSafe requires the Buyer (the party who will deposit the funds with TradeSafe), all Wholesalers and the End-Seller (the party receiving the funds to their bank account) to be linked and be a party to the same TradeSafe transaction. This ensures that terms are agreed by everybody, that all parties are vetted, that there is complete transparency (with respect to performance) and that everybody is on the same page. When a transaction is created, all parties must be linked. TradeSafe will not link any additional parties to an already existing transaction. This is becoming quite common amongst suppliers who at the last-minute requests TradeSafe to link the actual supplier to the transaction, who in the turn the new supplier asks TradeSafe to link an additional supplier...and so on and so more. Please see below how TradeSafe assists in linking all parties to a single transaction. THE END-SELLER ON THE TRADESAFE SYSTEM MUST BE THE PARTY THAT WILL RECEIVE THE FUNDS TO THEIR BANK ACCOUNT. If they are not receiving the funds to their account, then they are not the End-Seller and must be treated as a wholesaler, Sub-Agent or other intemediary.

But how can the End-Buyer add a End-Supplier to the transaction when he/she does not even know who the Supplier is? If there are two Wholesalers/Intemediaries that are involved in the transaction, how will the commissions be added as this is sensitive information and not one party will know the details of both Wholesaler's commissions to be included in a single transaction. It is quite simple if there is only one Wholesaler involved as the Wholesaler can create the transaction themselves and link their End-Buyer and End-Seller to the transaction using confidentiality mode. But what about two?

Well, this is where TradeSafe comes in. If there is more than one Seller/Reseller/Wholesaler involved, TradeSafe will structure the transaction. What we will need is the following (all documentation must be sent to

  • The End-Buyer's invoice (so that we can determine the funds flowing into escrow);
  • The End-Supplier's invoice (so that we can determine the funds flowing out of escrow); 
  • The commissions or profit owing to Wholesaler 1, Wholesaler 2 and the sub-agent; and lastly
  • A transaction description which comprises terms i.e. what is the trigger release event, how many loads, where, how long until buyer can demand a refund etc. Remember, these terms will need to be agreed by everyone and should have been agreed upfront by all parties before the TradeSafe transaction was initiated. 

If TradeSafe has all the information and everything reconciles i.e. Funds In escrow LESS all commissions and profits EQUALS Amount owing to END-SUPPLIER, then TradeSafe has all the information it needs to build a single TradeSafe transaction and link all the parties to the transaction using its proprietary confidentiality feature. The parties will never be disclosed to each other and the profits will remain hidden. The end-supplier now has comfort as he/she can see whether the funds are indeed in escrow and that it is indeed allocated to him/her. For the intemediaries, rest assured, Tradesafe will enforce CONFIDENTIALITY so that your parties' and any profits payable to you are protected and will never be disclosed to any other party. That is our promise!

Payment Runs

TradeSafe performs its daily payment runs twice every business day at 09h00 and 15h00. If authorisation to release was received at 14h30 then payment will be made at 15h00 using Real-Time Clearance that business day. If authorisation to release took place after 15h00, then payment will be made at 09h00 the following business day using RTC.

Refund Policy

Remember, the terms of the transaction are dictated by the parties. Therefore TradeSafe will classify a transaction as a non-performance if there has been a breach of the transaction terms. If a transaction clause states that the slips must be furnished within, say, 24 hours, and the supplier is unable to perform within the time period, then this will be classified as a non-performance Should there be a non-performance on TradeSafe, then the buyer will receive their funds in full at 15h00 that same day or 09h00 the following business day when TradeSafe performs its daily payment run (TradeSafe peruses Real Time Clearance so the funds should reflect immediately in the buyer's bank account). 

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