KYC checks diagram

KYC (Know Your Customer) process is optional and can be tailored to the merchants needs. Expanded flow for bank onramp scenario is shown below:

KYC flow for onramp payment (KYC states highlighted)

KYC processing steps

XGateway facilitates seamless KYC (Know Your Customer) checks through integrations with trusted KYC providers. This flow is embedded within the checkout process and operates as follows:

1. Quick Status Check:

   • Users who have previously completed KYC are redirected directly to the payment processing page.

2. Eligibility for Simplified Flow:

   • For users without prior KYC status, special conditions configured by the merchant are applied.

   • By default, first-time users with transactions below 700 EUR qualify for a simplified flow, where the KYC process can be skipped once.

   • KYC is triggered for:

     • Transactions above the 700 EUR threshold.

     • Second and subsequent payment attempts.

     • Explicit merchant requirements.

3. Simplified Flow Completion:

   • If eligible for the simplified flow, the KYC process concludes, and the user is redirected to the payment processing page.

   • Otherwise, the user's status changes to KYC_NEEDED, initiating the main KYC process.

4. KYC Data Submission:

   • The user is redirected to a KYC request form to input their details. Their status changes to KYC_PENDING, and additional rules may expedite processing where possible.

5. KYC Token Check:

   • XGateway performs a token check to determine if previously submitted KYC data can be reused.

   • If the token check fails, the user’s status changes to PENDING_KYC_DATA, and the checkout page integrates securely with the KYC provider for data submission.

6. Inline KYC Data Collection:

   • Data collection may involve multiple steps and can take some time, though most checks are completed automatically within minutes.

7. Callback and Status Update:

   • Upon successful verification, the user’s status changes to FULL_USER, and the invoice activation process begins.

8. Unsuccessful Verification:

   • Failed verification result in one of two statuses:

     • SOFT_KYC_FAILED: Recoverable errors, such as incorrect or incomplete user data. XGateway provides an inline patch form, allowing users to correct and resubmit their data, with multiple retries if needed.

     • HARD_FAIL: Indicates a suspicious user or one deemed ineligible for the transaction. This results in a failure page at checkout, invoice cancellation, and merchant notification. While the user may escalate the issue to technical support, the likelihood of a positive outcome is low.