KYB Definition.
Know Your Business: verification of a business customer, covering legal existence, ultimate beneficial owners (UBOs), sanctions, whether the business is real, and whether it matches the declared MCC. Acquirers and PayFacs perform it when onboarding each merchant, then on an ongoing basis through transaction monitoring. Weak KYB exposes them to merchant fraud (sham websites, laundering through fake sales) and to regulatory penalties.
See also
Where this term appears
GuideThe role of banksGuideKYC and KYB around the worldGuideMarketplaces and collecting payments on behalf of third partiesGuidePayment stablecoinsGuideMerchant agreements and onboardingGuidePayment routing and optimizationGuideMarketplaces and the safeguarding of fundsCourseRunning a multi-country marketplaceCoursePaying and collecting across bordersCourseMarketplaces: collecting for third parties and safeguarding fundsCourseAccepting cards in store: POS terminals from A to ZCourseKYC, KYB, and AML/CFT: compliance for payment companies