As required by local regulations, your sellers have to go through screening before you can process payments for them.
To screen your sellers, you must collect data from them through your user interface and submit the data you collected to Adyen through API requests. Once we have the information, we run the screening checks and inform you of the results through webhooks.
On this page, we describe general screening requirements and how screening works.
Seller types
It is important to identify the type of seller to determine country-specific requirements for onboarding users. The type of seller is determined by their business registration country.
Adyen categorizes sellers as domestic if they are based in Japan and as foreign if they are registered in any other country.
Legal entity types
Requirements vary based on the legal entity type of the seller. A legal entity is a person (individual) or an entity (such as public companies or nonprofit organizations).
The seller that holds a contractual relationship with your business is the main legal entity. Other entities that are associated with this seller must also be specified as a legal entity. For example, representative directors of a private company must be specified as individual legal entities. The legal entities of the directors must be linked to the company, the main legal entity that is conducting business with you.
The following tabs show the legal entity types and describes the general requirements.
The entity is an organization registered in Japan or any other country.
An organization is further classified into types, such as private company or listed public company.
To screen an organization, you must collect:
- The legal name of the organization.
- Their organization's tax ID, called Corporate Number.
- The organization's registered address.
- The representative directors of the organization.
See Required information for the corresponding API parameters.
Capability
A capability is an action that the legal entity can do, such as the ability to process payments in Japan. When creating a legal entity for your seller, you have to specify the capability you are requesting for them.
If the screening is successful, the capability to process payments in Japan (called localAcceptance) will be allowed and enabled for the seller's legal entity.
Screening process
The following diagram illustrates the screening process.
- You create a legal entity and request the capability to process payments in Japan.
- Adyen runs the screening asynchronously and sends all screening-related updates to you through webhooks.
- If the screening fails, your seller can provide new or revised information to retry the screening.
If the screening is successful, you are allowed to process payments for your seller in Japan.