# KYB - What It Means in Merchant Onboarding

Source: https://payneteasy.com/glossary/what-is-kyb

_Learn what KYB (Know Your Business) verification is, which documents and checks it involves, how it differs from KYC, and why it gates merchant accounts._

KYB (Know Your Business) is a process used by financial institutions to verify the identity and legitimacy of a company before providing services. KYB applies similar due diligence principles to businesses rather than individuals and is a standard step in merchant onboarding.

## What Is KYB?

KYB checks verify that a business legally exists and help assess its ownership, legitimacy, and exposure to financial crime risks. In many jurisdictions, regulated financial institutions and [payment service providers](https://payneteasy.com/glossary/payment-service-provider-psp) must perform business due diligence as part of their AML/CFT obligations.

## How the KYB Process Works

A typical KYB review verifies company registration documents, legal form and address, ownership structure, and the identity of directors and ultimate beneficial owners (UBOs). The provider also screens the company and relevant individuals against [sanctions and other compliance watchlists](https://payneteasy.com/solutions/leads_protection_system) and assesses the business's risk profile, including industry-related risks.

## KYB vs KYC

[KYC (Know Your Customer)](https://payneteasy.com/glossary/what-is-kyc) verifies an individual; KYB verifies a company - including the individuals behind it. [Merchant onboarding](https://payneteasy.com/solutions/payment-integration) usually involves both: KYB for the legal entity and identity checks for relevant individuals, such as UBOs and those who control the business.

## Why KYB Matters for Merchants

KYB is a key part of merchant onboarding. Accurate registration documents and a clear ownership structure speed up onboarding, while gaps cause delays. [Modern payment platforms](https://payneteasy.com/solutions/orchestration-payment-platform) streamline the step with digital document collection and automated checks.

## Frequently Asked Questions

### Does every merchant need to complete KYB?

KYB requirements depend on the provider, jurisdiction, business type, and risk profile, but business verification is a standard part of merchant onboarding for regulated payment services.

### How long does KYB verification take?

The timeline depends on the complexity of the ownership structure, the documents provided, and whether additional checks are required.

### Who is checked during KYB?

Checks may cover the company, its ultimate beneficial owners, directors, and other individuals who control the business.

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