KYB onboarding / payment facilitator model
The business verification and underwriting needed before a platform can let a seller take payments or receive payouts.
See it
What it is
Know Your Business, or KYB, checks that a seller is a real business and identifies relevant owners or controllers before payment features are enabled. A payment facilitator, or PayFac, onboards submerchants under a sponsored payments program instead of making each seller establish a standalone acquiring relationship.
Reach for provider-hosted or embedded KYB onboarding when a platform needs to accept payments or issue payouts for many businesses. Collect only the information the provider requests, show verification status, and keep restricted capabilities off until required checks pass.
Gotcha: verification is a lifecycle, not one form submission. Documents expire, ownership changes, risk reviews request more information, and capabilities can become restricted later. Do not market a setup as a PayFac model merely because it has connected accounts; that role depends on the provider and program agreement.
Ask AI for it
Build Stripe-hosted KYB onboarding for marketplace sellers with Stripe Connect Accounts and Account Links. Create an account, request only the currently required business, owner, controller, and bank details, and redirect the seller to Stripe's secure collection flow. Store Account requirements and capability statuses instead of identity documents, process account.updated webhooks idempotently, block payments or payouts until the required capability is active, and show a clear remediation checklist when more information is due.