How do I verify my transfer recipients?
In the “Sending Transfers” documentation, it mentions that I should verify the identity of anybody I'm sending money to. How do I do this and why is this required?
When your recipients reach high transfer volumes (this varies depending on the recipient, but is typically in the thousands), your recipients must be verified with Stripe before we’re able to send additional transfers.
To verify your recipients you’ll need to collect SSN or EIN (depending on whether the recipient is an individual or company), and send it to Stripe during recipient creation or by updating the recipient. Stripe will verify that the name of the recipient matches the SSN or EIN. For this reason, you should always send us your recipients' full, legal name.
You can check to see whether your recipients are verified with Stripe using the ‘verified’ field in the dashboard or API.
To give you some context about why your recipients need to be verified: to help avoid criminal activity and money laundering, it’s important that anybody sending large quantities of money knows who they are paying and checks the payees against certain government watchlists (entities on this watchlist include terrorists, drug dealers, potentially corrupt government officials, etc). Stripe will automatically check recipients that you create against the lists.
Additionally, depending on your business model (if your recipients are babysitters or tutors, for example), you may want to implement further checks on your end. You may consider checking government ID, running background checks, or verifying the recipient’s identity against a trusted third-party database.