Vendor KYC

To improve the current vendor onboarding process to comply with PA-PG, and the digital lending norms we have included the vendor KYC collection for both individual vendor accounts and business accounts. For business account type, type of vendor business is to be collected and additional document verification is carried out for NBFC, Financial services businesses and other critical businesses.

Overview

Current vendor onboarding does not include KYC details collection. This makes it easier for fraudulent vendors or seller accounts to use the platform and start selling product or services which are not authorised by merchants. There is no due diligence on the relationship between merchant and the vendor accounts.

By including KYC details during onboarding, there will be

A surety for merchant to continue business with Cashfree and post account audits
A clear connection between merchant and the vendor relationship
A validation for the product or services offered by vendor

Why should businesses onboard vendors with KYC?

To continue business as usual with Cashfree EasySplit, non compliant vendors will be blocked for settlement until they meet the required criteria
For businesses which fall under the purview of digital lending guidelines, onboarding the vendor accounts with the full KYC checks will ensure that loan repayments are done to the valid bank accounts of the NBFCs where the settlements are intended to be credited.
Criminals on board the platforms use fake information and act as sellers/buyers to steal consumers' identities or process transactions for products or services which they are not intended to otherwise under specific MCC codes. This will limit such unauthorised vendors.

Vendor Type	KYC for Non-Critical Business	KYC for Critical business
Individual	* PAN	PAN Address Proof: Any one of (Aadhar, Driving License, passport & Voter ID)
Business	* Business PAN	* Business PAN, GST, CIN

Verification Process

The various KYC status for vendor accounts is mentioned in the table below.

KYC Status	Description
Document not shared	If KYC details are submitted without documents, Cashfree marks the status as document not shared.
In Document Review	If KYC details are submitted with documents then Cashfree marks the status as in document review.
Completed	Once the documents are verified by the ops team, the status of vendor KYC will change to complete.
On Hold	The On-hold status is updated by the Cashfree Payments team. The onboarding team has put the account On-hold because either the document is not available or the documents shared are insufficient.
Blocked	This is done by you if you intend to stop vendor settlement to the vendors. You can later unblock if you intend to resume the vendor settlements.

Use our latest APIs to stay risk-free using KYC-based onboarding. Click here to read more.