KYC/KYB onboarding guide · 9 min read
Merchant KYC and KYB checklist for payment onboarding
Merchant KYC and KYB establish who operates the business, who owns or controls it and whether the evidence supports the merchant application. A strong review checks consistency across the legal entity, people, bank information, websites and regulated activity instead of treating each document as an isolated upload.
1. Verify the legal business
Collect the current company registration evidence, legal name, registration number, registered address, trading names and relevant tax information. The application should clearly connect the legal entity with the websites and brands being submitted.
2. Identify directors and beneficial owners
Record the people who manage, own or control the merchant and collect the identity and address evidence required by the reviewing institution. Where ownership passes through companies, document the chain to the ultimate beneficial owners.
3. Connect banking and settlement information
The settlement account should be consistent with the merchant entity or supported by a clear explanation. Bank evidence can also help identify differences between the applicant, trading name and expected settlement arrangement.
4. Reconcile KYC/KYB with the website and business model
The business presented on the website should make sense for the legal entity and application. Check domains, products or services, customer policies, licensing claims, target markets and any regulated activity.
5. Treat KYC/KYB as part of onboarding, not the whole decision
Identity and business verification make the merchant reviewable, but they do not replace underwriting. Processing exposure, chargebacks, subscriptions, delivery risk and acquirer appetite still need separate consideration.
Questions
Frequently asked questions
What is the difference between KYC and KYB in merchant onboarding?
KYC focuses on verifying relevant individuals, while KYB focuses on the business entity, ownership and operating context. Merchant onboarding commonly requires both.
Does passing KYC mean a merchant will be approved?
No. Successful identity verification is only part of the process. The merchant can still require business-model, processing, regulatory and risk review.
What KYC/KYB documents are commonly requested?
Common evidence includes company registration documents, identity documents, proof of address, ownership information, bank evidence and licences where relevant. Exact requirements vary by provider and jurisdiction.