Verification process
Learn how Datman verifies the merchants in your portfolio.
As required by payment industry regulations, Datman must verify your merchants before it can pay out their funds. These verification checks are also called Know Your Customer (KYC) checks.
During this process, Datman checks that your merchants provide accurate information about their business, their owner and their bank account, and that they have accepted the terms of service. Based on the results, Datman decides what a merchant can do, for example whether payouts are enabled.
To see where a merchant is in the process, check its verification statuses.
On this page, we describe:
When does Datman verify merchants
Datman verifies merchants before allowing them to be paid out. The following events trigger verification checks.
Creating a merchant
When you create a merchant, Datman starts verifying the details you sent. If your merchant completes their details on the hosted onboarding page, Datman verifies those details too. If the checks pass, payouts are enabled for the merchant.
Your merchant can start on staggered onboarding, with part of the verification done. In the response to the create request, responseCode 1001 means the merchant is on staggered onboarding only.
On staggered onboarding, your merchant can take payments from the start, and their payouts continue while the total processed amount stays within the limit of their tier. For the tiers, limits and required information, see Staggered onboarding.
When merchant details change
When your merchant's details change after onboarding, Datman verifies them again. This happens when you send a patch request with isSyncEnabled true, which is the default.
If you send owner or business details when you create the merchant, the response contains responseCode 1002. This means the details are applied after onboarding, so the merchant's account might become unverified until the new details are checked.
When you share an onboarding link
When you get a shareable onboarding link for a merchant, Datman schedules follow-up verification checks for that merchant 2, 24 and 48 hours later.
Verification deadlines
Each merchant in your portfolio list has a due_in_days value.
How the verification process works
The following tabs show the process for each event that triggers verification checks, and how it shows in the verification statuses.
The verification process is as follows:
- You create a merchant, and send your merchant the onboarding link if they still need to enter details.
- Datman checks the merchant's business, owner and bank details, and their terms of service acceptance. While checks are outstanding, the onboarding status lists them in
errorsandmissing_details. - If a check fails, your merchant fixes the issue, for example by updating a detail or uploading a document.
If all checks pass, the merchant is fully verified and payouts are enabled:payout_statusis ACTIVE.
Next steps
Find out which information your merchants need to provide.