As required by payment industry regulations, account holders must pass verification checks before you can pay out to them. Account holders are generally required to provide more information after:
- They process their first payment.
- They advance to the next tier.
The following diagram illustrates the verification process when an account holder signs up to your platform.
- The account holder provides information when they sign up on your platform, which Adyen uses to verify them.
- Adyen checks if there are requirements that they need to meet, and runs the required verification based on the details they provided. If the account holder needs to provide more information, they must submit the information within a deadline. Adyen communicates all of these events and timelines through notification webhooks.
- If the verification fails, the account holder can retry the verification by providing new or revised details. They can also provide additional documents.
If the verification is successful, the account holder may start receiving payouts. If verification fails, payouts will not be enabled.
Adyen determines the required information for checks based on:
- The account holder's legal entity type.
- The country they are operating in.
- Their current tier.
- The account holder's legal arrangements, if applicable.
To get a complete list of requirements, refer to verification requirements.
Deadlines for providing information
The account holder needs to provide the required information within a deadline. If the information is not sent to Adyen in a timely manner, the account holder status will be changed to inactive, and eventually suspended. Adyen informs your server of upcoming deadlines through notifications webhooks.
|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 to proceed with the verification.|
|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, you must unsuspend the account holder 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 at any time after the deadlines. When they pass the verification, the account holder status is set back to Active. They can also start processing payments and payouts 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.
Example timeline for deadlines
For example, if a new account holder signs up, and processes their first payment on March 5th, they will be required to submit information for verification. The following deadlines apply:
- April 5th: Account holder status will be set to inactive.
- May 18th: Account holder status will be set to suspended.
If you want to collect information and continue the verification after May 18th, you must unsuspend the account holder.
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 Platform > Sub-merchants. 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.
Unsuspending an account holder
You can only unsuspend account holders if they did not fail any verification checks (
When an account holder has been suspended because they didn't meet a deadline, unsuspending them resets the deadline. They have 42 days to provide information before they are suspended again. You can unsuspend them as many times as you need to. Once unsuspended, their status changes from Suspended to Inactive, allowing you to update their information.
To unsuspend an account holder, you can use Customer Area or make an API request.
To unsuspend an account holder in Customer Area, you must have the Merchant Extended Marketplace user role.
- Log in to your Customer Area.
- Go to Platform> Sub-merchants. Find the account holder and select Unsuspend Account Holder.
Account holder statuses
The account holder status indicates whether an account holder can process payments and payouts.
|Active||The default status of an account holder. Payment processing and payouts are enabled.|
|Inactive||The account holder did not provide information required for verification checks within the 30-day time limit.
When the account holder provides the required information, their status is restored to Active.
|Suspended||The account holder did not provide information required for verification checks within the 6-week time limit or they failed verification checks (
When an account holder is suspended, make sure to hide or remove the account holder from your platform to prevent processing of funds.
Once suspended, you can only unsuspend or close the account holder if none of the verification checks have a failed status. When you unsuspend them, the status goes back to Inactive.
|Closed||The account holder has been closed and no operations are allowed. This status is final.|