KYC and KYB Verification
VelaFi operates within a regulated ecosystem, so every merchant must complete identity verification before transacting. Individuals go through Know Your Customer (KYC) verification; businesses go through Know Your Business (KYB) verification. When you submit a merchant creation request, the API responds with a unique redirect URL that launches VelaFi’s secure verification page. You have two options for presenting that verification page to your users:Redirect Mode
Send the user directly to the redirect URL returned by the API. This is the fastest integration path and requires no front-end changes on your side.
Embedded Mode
Embed the verification page inside your own application using an
<iframe>. This keeps users within your product and provides a seamless, white-label experience.Merchant Status Reference
After submitting a merchant creation request, the merchant moves through the following statuses. Poll the Get a List of Merchants endpoint to check the current status.Merchant Management Modes
VelaFi provides two operational models. Choose the one that fits your platform architecture and compliance posture.Multi-Merchant Management
After your primary merchant account completes KYB verification, you can create and manage sub-merchants — either individuals or entities — under your account. This enables hierarchical merchant management with flexible role-based access control. Common use cases include:- Aggregators managing compliance for multiple end clients
- Payment infrastructure platforms offering services to downstream sub-merchants
- Marketplace operators handling merchant-level compliance independently per seller
Reliance Mode
If you hold a financial institution licence, you can apply to enable Reliance Mode. This gives you full autonomy over the merchant onboarding workflow while VelaFi provides the underlying infrastructure.In Reliance Mode, you are responsible for merchant onboarding, ongoing review, and compliance monitoring. VelaFi does not intervene in your workflow — it supplies the technical infrastructure, settlement rails, and regulatory support to keep transactions secure and compliant.
Reliance Mode requires an additional compliance review by the VelaFi Compliance Team before it can be enabled on your account. Contact your VelaFi representative to begin the application process.
Activating Fiat Payment Channels
After a merchant is created and verified, activate the fiat currency channels you need. Supported currencies are MXN, ARS, BRL, COP, PEN, USD, and EUR. Activation unlocks the ability to send and receive funds through local banking rails in each country.1
Choose your activation endpoint
Select the endpoint that matches the merchant type — individual or business — and the target fiat currency.
2
Submit the activation request
Send the request with the merchant’s MID, the fiat currency and the
trench (payment channel). The response returns the channel status: local-rail channels return 1 (pending) or 2 (active), and USD/EUR Lead Bank returns 4 with a verifyLink for the merchant to complete. Business merchants may instead receive 0 with a verifyLink for an additional business verification. A 3 means the activation failed; see failReason.3
Receive virtual account details
When List Merchant Accounts shows status
2, retrieve the deposit details for the channel with Get Pending Fund Account. For example, ARS channels return a CVU number and CUIT tied to Argentina’s banking network.4
Fund via wire transfer
Merchants can deposit funds into their virtual account using a standard wire transfer. VelaFi automatically reconciles the incoming transaction and credits the merchant’s account balance.