Cardholder Onboarding Process

General Overview

The onboarding process for any new program entails gathering essential information about the organization launching the program and the individuals who will access the Embedded Finance platform. This step is crucial to tailor the right tools for your use case and ensure compliance with regulations governing payments and banking services, necessitating Know Your Customer (KYC) procedures.

Our dedicated sales and account management team will guide you through the information required for submission to our partners. This may include details such as your country of incorporation, a brief program description, and the intended account structure. For more detailed information, please refer to the Getting Started section.

This initial phase sets the foundation for a smooth and compliant onboarding process, ensuring that your program aligns effectively with regulatory standards and your specific business objectives. Should you have any questions or require further assistance, our team is readily available to provide support and guidance every step of the way.

Client Entity Onboarding Process

The technical client onboarding process begins with the verification of the Control Person and any Beneficial Owner identity who will be onboarded to the Platform.

  • A control person is defined as someone who can administer a business account on behalf of the organization. An organization must designate a single control person for the legal entity.

  • A beneficial owner is defined as any person who owns 25% or more of a company. An organization can have up to four beneficial owners associated with the legal entity.

As Qenta offers access to regulated financial services, we are obligated by EU and US payment regulations to verify the identities of all individuals accessing the Platform, primarily for anti-money laundering and risk mitigation purposes.

The Legal Entity resource serves as the framework for verifying the control person and beneficial owners of the client organization. It encompasses all essential data required to verify either an individual or an organization.

This meticulous process ensures compliance with regulatory requirements and helps mitigate potential risks associated with financial transactions. Should you require further information or assistance during this stage, our team is available to provide guidance and support. We are committed to facilitating a seamless and compliant onboarding experience for your organization.

Entity Onboarding Process

Any modification to the Legal Entity resource initiates a verification process, signified by the verificationFlow.state attribute transitioning to PROCESSING. During this stage, changes to the legal entity’s details cannot be made unless the verification process has a resolution status of ERRONEOUS.

This protocol ensures that all alterations to the Legal Entity resource undergo thorough verification, maintaining the integrity and accuracy of the information associated with the entity. Should you have any questions or require clarification regarding this process, our team is here to provide assistance and support. We are committed to facilitating a seamless and compliant onboarding experience for your organization.

Results

Upon completion of the verification process, outcomes are communicated through LegalEntityEvent (with eventType: legal_entity.verification_result) via the webhook interface.

Success

When the verificationFlow.state indicates SUCCESS, no additional modifications to the Legal Entity are permitted. This status confirms successful verification, ensuring the entity’s details are accurate and compliant.

Error

If the verificationFlow.state transitions to ERRONEOUS, the verificationFlow attributes erroneous and nextSteps provide details on the encountered error and the necessary steps to rectify it. These instructions are aligned with the defined verification flow, guiding users on the appropriate course of action to address the issue and proceed accordingly.

These result notifications keep users informed of their entity verification process’s status, facilitating transparency and timely resolution of any encountered issues. Should you require further assistance or clarification regarding the verification results, our team is available to provide support and guidance throughout the process. We are committed to ensuring a smooth and efficient onboarding experience for your organization.

Cardholder Onboarding

Verification of a person’s residential address and identity is a required step in the onboarding process. In instances where these sub-resources are found to be erroneous, they can be enhanced or re-verified using the matching PATCH method.

The default verification flow for cardholder applicants in the EU and US is outlined in the following documentation. This flow ensures compliance with regulatory requirements and helps maintain the integrity and accuracy of cardholder information.

Should you encounter any errors or discrepancies during the verification process, our team is available to assist you in rectifying the issues and ensuring a smooth onboarding experience. We are committed to supporting you every step of the way to ensure compliance and efficiency in the cardholder onboarding process.

Residential Address

As part of the onboarding process, the cardholder’s residential address must be verified during routine KYC (know-your-customer) checks. If the cardholder’s address is not accurate, does not exist, or is unable to be verified by our KYC partner, additional verification will be required. The country of the residential address must match one of the payment program’s configured card-issuing countries. For instance, if your card program is configured to operate in Austria and Germany, cards cannot be issued to cardholder applicants residing in France.

In the event of an error in the residential address, you can utilize the PATCH method to update the data, using the “modify persons residential address” API endpoint. This allows you to correct any discrepancies and ensure that the residential address aligns with the requirements of your card program.

By adhering to these guidelines, you can maintain compliance with regulatory standards and ensure a seamless cardholder onboarding experience. If you require further assistance or have any questions regarding the residential address verification process, our team is here to provide support and guidance.

Identity

Verification of the cardholder applicant’s name and date of birth is essential in the onboarding process. If the residential address is successfully verified but an error is detected in the identity verification, the cardholder applicant will be prompted to upload an ID document.

Errors in identity verification may result from input mistakes in the name or date of birth, or due to insufficient verifiable information about the cardholder applicant. This situation can arise, for example, if a person has recently changed addresses.

To address errors in the identity input, you can utilize the PATCH method to update the data, using the “modify persons identity data” API endpoint. This allows you to correct any inaccuracies and ensure the cardholder’s identity information is correct and compliant with regulatory requirements.

By following these procedures, you can enhance the accuracy and integrity of identity verification in the cardholder onboarding process. Should you require further assistance or have any inquiries regarding identity verification, our team is available to provide support and guidance.

ID Document Upload

Uploading an ID document is a necessary step only when errors are detected in the identity input information.

Here are some important guidelines for ID document upload:

  • The ID document must include files for both the front and back sides.

  • When re-uploading documents, ensure that at least one file differs from the currently stored ones.

  • Accepted file types for upload are JPEG and PNG.

To (re)upload ID document data, utilize the PATCH method available through the “modify persons ID document” API endpoint. This allows you to update or re-upload ID document files, ensuring that accurate and compliant documentation is available for identity verification purposes.

By adhering to these instructions, you can facilitate a smooth and efficient process for verifying cardholder identities. If you have any further questions or require assistance with the ID document upload process, our team is here to provide support and guidance.

Testing

The test environment defaults all Legal Entity checks to SUCCESS. However, specific keywords trigger error results:

  • middleName:

    • containsIgnoreCase ("xError:identity"): results in an erroneous identity

    • containsIgnoreCase ("xError:risk"): results in a risk check with total score 99

  • district:

    • containsIgnoreCase ("xError:residentialAddress"): results in an erroneous residential address

  • documentFront:

    • The filename containsIgnoreCase ("xError"): results in an erroneous ID document

These keywords enable controlled testing of error scenarios within the system. By incorporating them appropriately, you can simulate various error conditions to ensure robustness and effectiveness in handling exceptions during testing. If you need further guidance on testing procedures or have any questions, feel free to reach out to our team for assistance. We’re here to support you in conducting thorough and effective testing in your environment.