In this age of technology, Finix takes your security one step further by requiring merchants verify their identity prior to accepting payments using their platform.
According to the Federal Trade Commission (2024), The rate of identity theft increased significantly from 2017 to 2021, growing from 371,000 reports to 1.4 million. While reports of identity theft have dropped after peaking in 2021, they remain well above pre-pandemic rates.
So, why does Finix want me to verify my identity before I can accept payments?
Finix follows the federal "Know Your Customer" (KYC) regulations, which are part of the Patriot Act, to verify your identity and prevent fraudulent activity when opening a merchant account for your business; essentially, it's a way to ensure that the person applying for the account is who they say they are and not involved in illicit activities.
To run these checks, Finix gathers certain information to verify the identity of the individuals managing your Finix account, the business associated with the Finix account, and individuals who own or control the business.
This information includes:
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Business Information: Information about the business such as business name, EIN, and the business incorporation type.
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Control Owner Information: Information about the person who is signing up for the merchant service, such as their address, SSN and date of birth. This is generally the business owner. The EIN is like the social security number for the BUSINESS, but the SSN is unique to the PERSON.
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Beneficial Owner Information: Information about any person with 25% or more ownership.
These identity verification policies are part of Finix’s Bank Secrecy Act/Anti-Money Laundering program and are required by anyone using this merchant service to process payments.
The final step in insuring you are who you say you are and no bad actors are stealing your information to take payments, Finix requires you to verify your identity on camera by holding up some form of government identification as well as taking a photo of your face for comparison. It may not be so hard to steal someones EIN or SSN nowadays, but it's pretty impossible to morph yourself into the person you stole from!
Here's how it goes:
💡 Ensure to allow your camera access so you can take the required images. If you don't have a camera on your computer, you can select the option to "Continue on another device" and you will be emailed a secure link to continue.
To learn more about how Finix secures their data, here is a link to their security and compliance details: https://finix.com/docs/guides/business/security-and-compliance-at-finix/