Know Your Customer (KYC)

In this article, you will learn what "Know Your Customer" (KYC) means, why this account verification process is necessary, and how it is carried out.

What Is KYC?

The abbreviation KYC stands for "Know Your Customer." It is the mandatory verification process for a merchant account, required for the merchant to accept payments.

KYC includes various standards to protect financial institutions from fraud, corruption, money laundering, and terrorist financing.

The KYC process aims to achieve the following objectives:

• Verification of the merchant's identity

• Understanding the nature of the merchant's activities and ensuring that the source of funds is legitimate

• Assessing the money laundering risks associated with the merchant

Who Conducts the KYC Process?

As the platform operator, you do not need to take any action, as Payrexx handles the entire account verification process for you:

• We contact the merchant.

• We request all necessary documents and information from the merchant.

• We make the decision on whether to accept or reject the account.

• We notify the merchant of the decision.

Prohibited Business Models

As a regulated company, Payrexx operates within the strict guidelines of financial authorities, card companies, and payment processors.

Therefore, we are unable to accept every business model. In particular, we must decline business models that involve prohibited or restricted products, as well as those with a high risk of default.

The following article provides the full list of prohibited business models:

Prohibited Business Models | Docs

What does KYC rejection mean?

If Payrexx is unable to verify a merchant account, the merchant will not be able to use our own payment providers, Payrexx Pay and Payrexx Pay Plus.

However, the merchant can still use Payrexx and all its features and e-commerce tools. In this case, at least one external payment provider must be activated to accept payments.