Although the phrase “know your customer” may seem insignificant to most people, it has a very important meaning in the business world. The process of knowing your customer, otherwise referred to as KYC, is what businesses do in order to verify the identity of their clients before they start doing business with them.
Similarly, in the banking and payments processing industry we use this term when we are required to verify our applicant’s identities to qualify them prior to approving a merchant account. Until we can identify your suitability we cannot process transactions and settle money into your nominated bank account. Essentially, we need to know that you are, who you say you are before we can proceed with your merchant application.
Very much like the “100 points” of identification that you would complete to open a bank account we are required to ask you to provide us with your identification.
This done by collecting basic data and information about you using electronic identity verification. Read more