The Know Your Customer (KYC) process is essential for verifying the identity of merchants and ensuring the security and integrity of the payment processing system. This guide outlines the key requirements and steps to successfully complete the KYC process with NanoKard.
What this article covers
- Credit card volume
- Average ticket/high ticket amount
- Business name, address, and phone numbers
- Merchant due diligence requirements
- Additional documentation
- Owner information
- Minimum application materials required for all merchants
1. Credit card volume
Merchants are required to provide accurate estimates of their monthly card processing volumes. This information is vital for uninterrupted payment processing.
- Existing merchants: Use previous processing statements to provide accurate volume estimates.
- New merchants: Thoughtfully estimate monthly volumes before completing the NanoKard Merchant Application.
Note: Incorrect volumes can trigger internal controls, potentially leading to processing suspension and an investigation into suspiciously high activity.
2. Average ticket & high ticket amount
The Average Ticket Amount, derived from the last three months' sales, influences underwriting and risk management. The High Ticket Amount should reflect the maximum sale a merchant expects to process. Provide accurate Average and High Ticket amounts to avoid unnecessary security reviews and processing disruptions.
3. Business name, address, and phone numbers
NanoKard uses third-party platforms to validate merchant information. Accurate details are critical for successful validation.
- Business name: Ensure the legal and DBA names match the business bank account.
- Address: Enter the physical location of the business. PO Boxes are not acceptable. Home addresses are only acceptable for home-based businesses.
- Phone number: List the business landline. If unavailable, provide the business's mobile number.
4. Merchant due diligence requirements
All prospective merchant relationships require thorough due diligence to ensure compliance with regulatory standards.
- Collect and verify the following for the merchant:
- Legal Entity Name
- DBA Name
- Physical Address (No PO Box)
- Tax Identification Number (TIN) or Social Security Number (SSN)
- Beneficial Ownership: Verify proof of identity for individuals owning 25% or more equity interest in the business.
- Control: Verify proof of identity for the individual with significant control over the business, such as an executive officer.
5. Additional documentation
Additional documents may be required to validate the merchant account and ensure compliance with NanoKard’s standards.
- TIN/EIN letter: Submit the business's TIN or EIN, along with a government-issued letter.
- Financial statements: Provide balance sheets and income statements for the past two years if requested.
- Marketing materials: Submit any relevant marketing materials to clarify the merchant's offerings.
- Processing statements: Provide these to demonstrate business consistency.
6. Owner information
Why it matters:
Accurate owner information is critical for KYC validation and compliance with federal regulations.
Steps:
- Signatory’s name: Ensure that the signatory is an owner or officer of the business, with their full legal name correctly listed.
- Home address: Enter the signatory’s home address unless the business is home-based.
- Phone numbers: Provide the signatory’s home or mobile phone number.
- Social Security number: This is crucial for verifying the signatory and clearing OFAC screenings.
- Date of birth: Ensure the date of birth is accurate to avoid validation issues.
Note: For Non-Resident Alien accounts, additional documentation such as a physical site visitation, ITIN, and a valid passport is required.
7. Minimum application materials required for all merchants
Completing the application process accurately and thoroughly is essential for account approval.
- Ensure all fields in the NanoKard Merchant Application are completed and signed by the owner or signatory.
- Attach all required documentation and accept the NanoKard Terms of Service (TOS).
- Use only NanoKard-approved application materials to comply with program standards.
To ensure a smooth and compliant onboarding experience with NanoKard, merchants can complete the KYC process by following the steps outlined in this guide.