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What is KYB?

To comply with U.S. financial regulations and ensure the integrity of our Payments platform, GrailPay requires all merchants to pass Know Your Business (KYB) verification as part of the onboarding process. KYB is a mandatory due diligence process that helps identify and validate the legitimacy of a business, its ownership structure, and its associated individuals. During KYB, we collect and validate details such as:
  • Legal business name and entity type
  • Employer Identification Number (EIN / TIN)
  • Business address
  • Business owners (with associated SSNs, Emails, and DOBs)
  • Supporting documentation, when applicable
This information is submitted to our verification providers to confirm that the business is registered, operating legitimately, and not subject to regulatory flags.

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Why KYB Matters

KYB is a core component of anti-money laundering (AML) and fraud prevention frameworks. By verifying merchant entities during onboarding, GrailPay ensures:
  • Trustworthy participation in the ACH network
  • Reduced risk of fraudulent or high-risk businesses
  • Compliance with NACHA, FinCEN, and other regulatory obligations
  • Accurate ACH classification for downstream financial processing

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KYB Statuses

Once a KYB request is submitted, the merchant will be assigned one of the following status values:
You can monitor a merchant’s KYB status by retrieving the merchant record or by listening for the MerchantUpdated webhook event. Changes to KYB status will be reflected in real time, allowing your system to take appropriate onboarding or operational actions.