KYC (Know Your Customer) is a mandatory identity verification process required by financial regulations to prevent money laundering, fraud, and terrorism financing. When setting up a Stripe account or using payment platforms, merchants must provide personal and business details (such as government ID, tax numbers, and addresses) to prove they are who they claim to be.
FAQs:
- Why is Stripe asking for my passport or ID?
Stripe is legally required to verify the identity of the beneficial owners of any business processing payments to comply with global banking laws. - What happens if I fail KYC checks?
Stripe may pause your payouts or, in severe cases, disable your ability to process charges until the required information is provided and verified. - Is my KYC data safe?
Yes, payment processors use bank-grade encryption to store sensitive personal data and documents.
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