> ## Documentation Index
> Fetch the complete documentation index at: https://docs.velafi.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Merchants

> Create and verify individual or business merchants, choose a management mode, and activate fiat payment channels across seven currencies and countries.

A merchant in VelaFi is a verified entity—individual or business—that has passed compliance review and received a unique **Merchant ID (MID)**. Every API call related to transactions, account management, and settlements requires a MID, making merchant creation the foundational step before you can process any payment.

## 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:

> [card] 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.

> [card] 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.

> [!WARNING]
>
> The verification URL is time-limited. Use it promptly after receiving it in the API response — it may expire or become invalid depending on session and configuration settings.

Once verification succeeds, VelaFi assigns a permanent MID to the merchant. Use this MID in all subsequent API requests.

## Merchant Status Reference

After submitting a merchant creation request, the merchant moves through the following statuses. Poll the [Get a List of Merchants](https://docs.velafi.com/api-reference/merchant/get-a-list-of-merchants.md) endpoint to check the current status.

| Status Code | Status | Description |
| - | - | - |
| 1 | Authenticating | KYC/KYB verification is in progress. |
| 2 | Normal | Verification passed. The merchant is active and can transact. |
| 3 | Authentication Failed | Verification was rejected. Retrieve the rejection reason and re-submit. |
| 4 | Incomplete | Verification was started but not completed. Use the original KYC link or create a new one. |

## 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.

> [!NOTE]
>
> 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.

> [!NOTE]
>
> 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.

| Endpoint | Use case |
| - | - |
| [Activate Merchant Account (Individual)](https://docs.velafi.com/api-reference/merchant/activate-merchant-account-for-individual.md) | Personal accounts for KYC-verified merchants |
| [Activate Merchant Account (Business)](https://docs.velafi.com/api-reference/merchant/activate-merchant-account-for-business.md) | Corporate accounts for KYB-verified merchants |

**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](https://docs.velafi.com/api-reference/merchant/get-a-list-of-merchant-accounts.md) shows status `2`, retrieve the deposit details for the channel with [Get Pending Fund Account](https://docs.velafi.com/api-reference/merchant/get-pending-fund-account.md). 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.

### Virtual Account Details by Country

Each activated fiat channel provides a dedicated virtual account so that inbound payments are automatically matched to the correct merchant.

| Country | Currency | Virtual Account Type |
| - | - | - |
| 🇦🇷 Argentina | ARS | CVU number + CUIT |
| 🇧🇷 Brazil | BRL | Pix key / bank account |
| 🇨🇴 Colombia | COP | Local bank account |
| 🇲🇽 Mexico | MXN | CLABE |
| 🇵🇪 Peru | PEN | Bank account |
| 🇺🇸 United States | USD / EUR | USD: ACH / FedWire routing details; EUR: SEPA |

> [!TIP]
>
> Both personal and business account types are supported for each fiat channel, giving you flexibility across a wide range of payment scenarios.


## Related topics

- [Create a Merchant](https://docs.velafi.com/docs/guides/creating-merchant.md)
- [List Merchants](https://docs.velafi.com/api-reference/merchant/get-a-list-of-merchants.md)
- [Activate a Merchant Account](https://docs.velafi.com/docs/guides/activating-merchant-account.md)
- [List Merchant Accounts](https://docs.velafi.com/api-reference/merchant/get-a-list-of-merchant-accounts.md)


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