Creating Your Merchant
This section describes how to create a compliant individual or business entity (Merchant) under the VelaFi compliance framework. You will initiate the KYC/KYB verification process, receive a redirect URL for user verification, and learn about the available merchant management modes.
Overview
To operate within VelaFi’s regulated ecosystem, every merchant must complete Know Your Customer (KYC) or Know Your Business (KYB) verification.When creating a merchant via API, you must submit detailed business or personal information to initiate the compliance review.Once the verification is successful, the platform will assign a unique Merchant ID (MID) to you or your client. This MID is required for all subsequent API calls related to transactions, account management, and settlements.
KYC/KYB Verification Flow
When the API request for merchant creation is successful, the response will include a unique redirect URL. This URL leads to VelaFi’s secure KYC/KYB verification page.You can choose between two integration options:
Redirect Mode — Directly redirect your user to the provided URL to complete the verification process.
Embedded Mode — Embed the verification page into your front-end application using an
<iframe>for a seamless user experience.
⚠️ Important: The verification URL may expire or become invalid after a specific period, depending on session and configuration settings. Ensure it is used promptly.
Merchant Management Modes
VelaFi provides two operational models for merchant creation and management:
1.Multi-Merchant Management
Once your primary merchant account has successfully passed KYB verification, you can create and manage sub-merchants (either individuals or entities) under your account. This enables hierarchical merchant management, along with flexible role-based access control and configuration.Typical use cases include:
Aggregators managing multiple clients
Platforms offering payment infrastructure to sub-merchants
Marketplace operators handling merchant-level compliance separately
2.Reliance Mode (Optional)
If you are a licensed financial institution, you can apply to enable Reliance Mode. This mode grants you greater autonomy over merchant operations and compliance.In Reliance Mode:
You are responsible for merchant onboarding, review, and ongoing compliance monitoring.
VelaFi does not intervene in your merchant onboarding workflow.
VelaFi provides the technical infrastructure, settlement rails, and regulatory support to ensure transactions remain secure, efficient, and compliant.
🛡️ Reliance Mode requires an additional compliance review by the VelaFi Compliance Team.
Click here to learn more about the Reliance Mode application process.
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