As required by payment industry regulations, Adyen must verify the cardholders in your before you can pay out their funds.
During this process, Adyen verifies that your cardholders provide accurate information about their businesses. Based on the results of the KYC checks, Adyen decides if a cardholder can perform any action on your . These actions are known as capabilities .
On this page, we describe:
When does Adyen verify users
Adyen verifies cardholders before allowing them to use capabilities on your . The following are the events that trigger verification checks.
When you request capabilities for your user
In the design phase, you set the default capabilities for your . These capabilities are requested every time you onboard a new cardholder and create an account holder for them. Adyen verifies the cardholder and if they successfully complete the verification checks, they are allowed to use the capabilities.
If a user needs a specific capability that is not requested by default, you must request the additional capability. In some cases, this requires more verification.
When cardholders change their data
When cardholders change their data after they are already allowed to use capabilities, Adyen verifies them again.
If the updated data fails verification, in the future Adyen might set a deadline by which the cardholder should resolve the issues. The cardholder is allowed to continue using the capabilities while the deadline is active.
If the cardholder does not resolve the verification issues in a timely manner, their capabilities will be disallowed.
Verification deadlines
Verification deadlines are only available in v3 of the Legal Entity Management API.
For the events described above that trigger additional verification checks, Adyen may set a deadline to give the user enough time to resolve verification issues.
Users are allowed to continue using the capabilities while the deadline is active. To get the verification deadlines, make a GET /accountHolders/id request.
The diagrams in the next section show the process and the corresponding capability verification statuses and capability settings.
How the verification process works
In the following diagrams, you can see the process for events that trigger verification checks and the relationship between capability verification statuses and capability settings.
The illustrated verification process is as follows:
- You create an account holder or request new capabilities for your cardholder.
- Adyen asynchronously checks if there are verification requirements that your cardholder must fulfill.
- If the verification fails, the cardholder can fix the issues by providing new or updated data.
If the verification is successful, the cardholder is allowed to use the capability.
Adyen sends all verification-related updates through webhooks. If Adyen has found reasons to not allow the capability, the capability verification status is set as rejected and the capability will not be allowed.
