--- title: Identity verification for connected accounts subtitle: Use identity verification to reduce risk on your platform when using Connect. route: /connect/identity-verification --- # Identity verification for connected accounts Use identity verification to reduce risk on your platform when using Connect. Every country has its own requirements that accounts must meet so that Stripe can pay out funds to individuals and companies. These are typically known as [Know Your Customer](https://support.stripe.com/questions/know-your-customer-obligations) (KYC) requirements. Regardless of the country, broadly speaking, the requirements Stripe must meet are: * Collecting information about the individual or company receiving funds * Verifying information to establish that we know who our customers are *Connect* platforms collect the required information from users and provide it to Stripe. This can include information about the legal entity and personal information about the representative of the business, and those who own or control the business. Stripe then attempts verification. In some cases, Stripe might be able to verify an account by confirming some or all of the keyed-in data provided. In other cases, Stripe might require additional information, including, for example, a scan of a valid government-issued ID, a proof of address document, or both. This page explains the verification flow options to meet Stripe KYC requirements, but the recommended way to manage verification is to integrate [Connect Onboarding](https://docs.stripe.com/connect/custom/hosted-onboarding.md), which lets Stripe take care of the complexity around the basic KYC obligations. Handling the details of account verification is initially complex and requires vigilance to keep up with the constantly evolving regulatory changes around the world. If you decide to handle account verification yourself, continue reading to learn about the verification flow options, how API fields translate to companies and individuals, and how to localize information requests. Also, read [Handling Identity Verification with the API](https://docs.stripe.com/connect/handling-api-verification.md) to learn how to programmatically provide information and handle requests. Even after Stripe verifies a connected account, platforms still must [monitor for and prevent fraud](https://docs.stripe.com/connect/risk-management/best-practices.md#fraud). Don’t rely on Stripe’s verification to meet any independent legal KYC or verification requirements. ## Verification requirements Verification requirements for connected accounts vary by account, depending on: * Country * Capabilities * Business type (for example, individual, company) * Business structure (for example, public corporation, private partnership) * The service agreement type between Stripe and the connected account * The risk level You must collect and verify specific information to enable charges and *payouts*. For example, for a company in the US, you might need to collect: * Information about the business (for example, name, address, tax ID number). * Information about the person opening the Stripe account (for example, name, date of birth). * Information about [beneficial owners](https://support.stripe.com/questions/beneficial-owner-and-director-definitions) (for example, name, email). At certain variable thresholds—usually when a specified amount of time has passed or volume of charges have been made—you might need to collect and verify additional information. Stripe temporarily pauses charges or payouts if the information isn’t provided or verified according to the thresholds for [required information](https://docs.stripe.com/connect/required-verification-information.md). For example, additional information might include verification of the company tax ID number. ## Onboarding flows As the platform, you must decide if you want to collect the required information from your connected accounts *up front* or *incrementally*. Up-front onboarding collects the `eventually_due` requirements for the account, while incremental onboarding only collects the `currently_due` requirements. | | Up-front onboarding | Incremental onboarding | | ----------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------ | | **Advantages** | - Entails a single request for information (normally) - Creates fewer problems in receiving payouts and maintaining processing ability - Exposes potential fraudsters or connected accounts who refuse to provide required information | - Onboards connected accounts quickly - Results in higher onboarding rates | | **Disadvantages** | - Onboarding connected accounts can take longer - Some legitimate new connected accounts might turn away due to the amount of information required before they complete the onboarding process | - Creates a higher likelihood of disrupting business of an ongoing connected account | To determine whether to use up-front or incremental onboarding, review the [requirements](https://docs.stripe.com/connect/required-verification-information.md) for your connected accounts’ locations and capabilties. While Stripe tries to minimize any impact to connected accounts, requirements might change over time. For connected accounts where you’re responsible for requirement collection, you can customize the behavior of [future requirements](https://docs.stripe.com/connect/handle-verification-updates.md) using the `collection_options` parameter. To collect the account’s future requirements, set [`collection_options.future_requirements`](https://docs.stripe.com/api/account_links/create.md#create_account_link-collection_options-future_requirements) to `include`. ## Business type * `individual`: Collect information about the person. * `company`: Collect information about the company. Depending on the countries your connected accounts are in, you might also have to collect information about [beneficial owners](https://support.stripe.com/questions/beneficial-owner-and-director-definitions). * `non_profit`: Collect information about the non-profit organization. * `government_entity` (available for US connected accounts only): Collect information about the government entity. If you or your users are unsure of their entity type, the information might be in the business formation documents or tax documents for that entity. See the [list of requirements](https://docs.stripe.com/connect/required-verification-information.md) for different business types by country. When you know what information to collect, you can read more about [handling identity verification with the API](https://docs.stripe.com/connect/handling-api-verification.md). ## Business structure Providing this information to Stripe gets you the most accurate business classification for compliance purposes. While it isn’t required, it can reduce onboarding requirements. For example, you’re required to provide owner information for private companies, but not for public companies. If you don’t provide information on the `structure`, Stripe defaults to classifying the company as private and requires you to provide owner information. ## Internationalization and localization If you support users in multiple countries, consider internationalization and localization when asking for information. Creating an interface that uses not only the user’s preferred language but also the proper localized terminology results in a smoother onboarding experience. For example, instead of requesting a business tax ID from your users, regardless of country, request: * EIN, US * Business Number, Canada * Company Number, UK You can find recommended country-specific labels along with the other [required verification information](https://docs.stripe.com/connect/required-verification-information.md). ## See Also * [Stripe-hosted onboarding](https://docs.stripe.com/connect/hosted-onboarding.md) * [Updating Accounts](https://docs.stripe.com/connect/updating-service-agreements.md) * [Handling additional verifications with the API](https://docs.stripe.com/connect/handling-api-verification.md) * [Account tokens](https://docs.stripe.com/connect/account-tokens.md) * [Required verification information](https://docs.stripe.com/connect/required-verification-information.md) * [Testing verification](https://docs.stripe.com/connect/testing-verification.md)