Each sub-merchant needs to be onboarded as an account holder. The account holder will then need to go through Know Your Customer (KYC) verification process. KYC is the process of a business (Adyen) identifying and verifying the identity of its clients (your sub-merchants). This is required by payment industry regulations.
To get the required information from your account holders, you can choose from the following onboarding options:
- Use our Hosted Onboarding Page where account holders directly provide their information. This solution requires less implementation effort.
- Build your own onboarding implementation. Collect information from your account holders and send it to Adyen over our API. You are in full control of the UI and user experience.
After we receive information from you or directly from your account holders, we automatically conduct the required verification.
We categorize the required information for verification into the check types below. The requirements for each check may vary depending on the country. For more details, refer to Verification checks.
You also have the option to use your existing KYC process.
Deadlines for account holder inactivation and suspension
Adyen requires additional information about the account holders in order to pay out. Account holders are usually required to provide more information for verification checks in the following scenarios:
- After the account holder processes their first payment.
- After the account holder starts processing payments at a higher tier.
You need to collect the required information within a deadline. Adyen informs you of upcoming deadlines through notifications. If you fail to provide the information to Adyen, the account holder status will be changed to inactive, and eventually suspended.
The change in the account holder status takes effect based on the following deadlines:
|Deadline||Account holder status||Description|
|30 days after the account holder was required to provide information||Inactive||The account holder status is changed to Inactive. Payouts are temporarily disabled. You can still update the account holder data in order to proceed with the verification checks.|
|42 days after the account holder status was set to Inactive||Suspended||The account holder status is changed to Suspended. All payments that have not been paid out to the account holder are refunded.
If you want to update the account holder data to continue with the verification checks, you must unsuspend the account first.
If an account holder cannot meet a deadline, you can choose to extend the deadline.
You can collect information from the account holder and continue the verification check at any time. When they pass the verification check, the deadline is removed and the account holder status is set back to Active. They can also start processing payments and payouts again.
For example, if a new account holder signs up, and processes their first payment transaction on March 5th, they will be required to submit information for verification check. The following deadlines apply:
If you want to collect information in order to continue verification checks after May 18th, you must unsuspend the account holder. You get an additional 42 days to provide the required information before the account holder is suspended again.
Notifications for upcoming deadlines
Seven days before the account holder inactivation or suspension, Adyen sends an ACCOUNT_HOLDER_UPCOMING_DEADLINE notification. You can get the actual date in the
executionDate field, in YYYY-MM-DD format.
When you receive the notification, we recommend that you follow up and remind the account holder to submit the required information.
The account holder may not be able to meet the inactivation or suspension deadline due to valid reasons. In these cases, you can extend the deadline for an additional one week.
You can only extend the deadline once during each deadline period: once during the account inactivation (T+30 days) and once during the suspension deadline (T+30+42 days).
When you extend the deadline for account holder inactivation, the counter for the suspension deadline starts after the extension. The new suspension deadline will be T+30+7+42 days.
Extend a deadline
You can extend the deadline in your Customer Area. Your Customer Area user must have the Merchant Extended Marketplace user role.
- Log in to your Customer Area.
- Go to Sub-Merchant Overview, find the account holder, and select Extend one week in the account holder overview.
The Extend one week button appears dimmed and is not available if you have previously extended the deadline.
Unsuspend an account holder
You can unsuspend the account holder only if none of the KYC checks have a FAILED
. When you unsuspend an account holder, the deadline is reset. You get an additional 42 days to provide the account holder's information before the account holder is suspended again. You can unsuspend the account holder as many times as you need to.
To unsuspend the account holder, you can either:
- Make a POST request to the /unSuspendAccountHolder endpoint.
- Or unsuspend them using your Customer Area. Your Customer Area user must have the Merchant Extended Marketplace user role.
- Log in to your Customer Area.
- Go to the Sub-Merchant Overview, find the account holder, and select Unsuspend Account Holder.
After the account holder is unsuspended, the status changes from Suspended to Inactive, allowing you to update the account holder's information.
If you think that the account holder will never process payments again, you can permanently close the account holder. Note that this action is irreversible.
Multiple verification attempts
It is possible your account holder might provide information several times for a given verification check without Adyen being able to validate them. In these cases, the verification check status will change to RETRY_LIMIT_REACHED.
Each check has its own means of resolving the RETRY_LIMIT_REACHED status. Refer to Verification check for each check and how to resolve RETRY_LIMIT_REACHED.
Failing to resolve the RETRY_LIMIT_REACHED will put the verification check under manual review.
Each verification check has an accompanying Verification status, which reflects where the account holder is in the verification process and whether more information is required.
Whenever a verification check is updated, you will receive an ACCOUNT_HOLDER_VERIFICATION notification specifying the check that was updated and its new status.
All account holder and account changes, including creation, notifications will be communicated to you via webhooks. Use our Notification Configuration API to configure your webhooks. You also can find a list of all notifications in Notifications.
Using your own KYC process
If you already have your own KYC process, you may be eligible to continue using it and we would not perform any validation on your account holders.
We will need to audit and approve your KYC process. Reach out to our Support Team if you are interested in using your existing KYC processes.
Once approved, you will still need to upload all the information of your account holders but we won't perform any validation.