Merchant Onboarding & Know-Your-Business Requirements
Merchant onboarding is a critical function for EPSPs that operate payment acceptance services, POS terminals, or payment gateway solutions. To prevent misuse of digital payment channels, EPSPs must conduct due diligence on merchants through Know-Your-Business (KYB) checks. These checks verify that merchants are legitimate, licensed, and engaged in lawful activities.
Merchant Onboarding Requirements
- Collection of business registration documents
- Verification of licensing and commercial activities
- Risk classification of merchant industry
- Assessment of transaction patterns and expected volumes
- Beneficial ownership identification
Operational Controls
- Chargeback and refund procedures
- Pricing transparency and fee disclosures
- Merchant reporting dashboards
- Settlement scheduling and bank account verification
CBI compliance
- Conduct KYB in accordance with AML/CFT guidelines
- Monitor merchant transactions for unusual behavior
- Report suspicious merchant activity where applicable
- Maintain merchant files for audit and supervisory review
How Etihad Can Assist
Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.