Know-your-customer or KYC is a set of regulations that financial institutions, banks, merchants, etc., comply with to verify the consumers' identity. In today's world, KYC verification has been enabled in every business sector to mitigate the risk of fraud or theft.
In the cybercrime department, each year, many complaints get lodged, and most of them are related to unauthorised purchases, debit card/credit card fraud, fake account creations, etc. To reduce such losses, the KYC verification process is inevitably being made in business policies as they are set and regulated by a government agency.
Cashfree Payments has embedded a dynamic and automated KYC verification suite for all business needs. It offers:
24*7 real-time PII data verification
Quick user authentication within a few seconds
Bulk verification saves time and efforts
Identity verification before making payouts
Cashfree Payments verification suite offers various identity verification tools such as Bank Account Verification, PAN Verification, UPI ID Verification, IFSC Verification, Aadhaar Verification, and even GSTIN details instantly. Businesses can use these tools to verify the beneficiary's attributes during their onboarding to ensure correct customer details are available during payments or payouts, eliminating the risk of failures.
Bank Account Verification
This tool ensures whether the beneficiary has a bank account and matches the information they provide with bank records including account holder's name, account number and IFSC. The verification process has been enabled with 600+ banks and bulk verification of up to 10,000 bank accounts in one go with Cashfree Paymen's bulk upload or advanced APIs. This is helpful for businesses such as insurance providers, e-commerce providers, fintech companies, and other platforms where bulk payouts or disbursing loans are crucial points.
UPI ID verification
Payments to bank accounts with UPI ID are common in today's business transactions—instant verification of UPI ID or UPI VPA. One must enter the given UPI ID and the account holder's name to verify a user's UPI. The same gets validated in real time if the details are correct. Otherwise, a pop-up message is displayed with incorrect information.
IFSC verification
Further, the verification suite also provides IFSC verification of the beneficiaries. The module also provides the details of bank and branch name, branch address and supported payment modes like IMPS, NEFT, and RTGS to check whether the IFSC entered is correct. This feature enables business partners to choose the payment mode accordingly and make successful transfers.
PAN verification
The PAN verification feature is most important for businesses to save them from the penalties levied by the income tax department for providing the incorrect PAN. With Cashfree Payments Verification Suite, one can verify if PAN is valid and check whether it belongs to the concerned beneficiary. PAN verification is a must before onboarding and making payments. PAN verification also enables one to check the details like the name as per the PAN database and the cardholder's status like Individual, HUF, Company, Firm, etc. Additionally, it also checks whether the PAN has been linked with Aadhaar. The KYC verification module does a single PAN verification or 10,000+ PAN verifications in one go via simple Excel file upload or APIs. Updating PAN and tracking their payout transactions is mandatory for sectors like lending platforms, securities and equity investment platforms, insurance providers, payments and fintech companies.
Aadhaar verification
Aadhaar has become a primary document to establish individual identity proof. Verifying a 12-digit Aadhaar number via online KYC/offline KYC is used to authenticate personal information in just a few seconds. To verify the Aadhaar number in the verification suite, enter the Aadhaar number, and the system will generate an OTP on the registered number of the beneficiary for a consent-based verification flow. Once the OTP verification is successful, the system will display the results like a registered name, gender, address, state, user's image, father's name, date of birth, contact number, and email address. Aadhaar verification is also an essential part of the onboarding process for every business.
GSTIN verification
GSTIN, or Goods and Services Tax Identification Number, is a unique 15-digit identification number assigned to every entity registered under the GST regime. Cashfree Payments also allow business users to verify the GSTIN easily. This ensures accurate ITC claimsclaim every time. Once the GSTIN validation is done, the tool further displays the additional details like taxpayer type, GST registration date, legal name of the business, and GSTIN status.
Overall, the KYC Verification Suite makes the beneficiary identification process hassle-free. The suite is beneficial for the following entities in the manner enlisted below:
Banks/Financial Institutions:
Fastrack account opening, Automated standing payouts, Credit/Debit card allocations, Loan disbursements
2. Securities & Investments
PAN & Aadhar based verification, PAN linked transactions, Benefits under the income tax act by making investments in mutual funds
3. HR & Staffing platforms
Onboard employees remotely, Ensure zero fraud & thefts, Employees monthly payouts, Customisable APIs
4. E-commerce & logistics businesses
Verification via GSTIN/PAN based, Avail of input tax credit , Fraud & risk reduction
The KYC verification suite by Cashfree Payments supports innovative and upcoming businesses like food delivery apps, courier services, learning apps, and finance & insurance. Powerful and reliable AI models enable seamless KYC verification.
In short, it helps in-
Instant verification and saves operational time and cost
Eliminates cyber fraud and thefts
Build successful business relationships
Matching of data from the latest reliable database
Single or Bulk upload upto 10,000 entries in one go
Real-time reasons for failed verification
Cashfree Payments attempts to secure the business's data by programming robust API modules. KYC verification protects businesses that lend and store money for their customers. The data is directly fetched from the updated government databases, hence is highly reliable and accurate.
