Avoiding KYC Pitfalls: 3 Steps to Smooth Onboarding for SMBs
Seamless cross-border payments are essential for small to medium-sized businesses (SMBs). But with traditional banks and payment providers, companies often face a familiar roadblock before they can even make their first international transaction: a complex KYC process that can stretch from days to weeks.
While Know Your Customer (KYC) checks are fundamental to secure transactions, for many SMBs that work with an ecosystem of cross-border suppliers or partners, they can create a bottleneck that delays payments, strains business relationships, and puts deals at risk. Businesses must often navigate multiple verification steps, varying documentation requirements, and opaque processes that can bring their momentum to a halt.
Let's examine why these KYC checks often fail and, more importantly, how your business can streamline the onboarding process to keep international payments flowing smoothly.
Why KYCs Fail: Common Challenges in the Cross-Border Payment Process
1. Complex and Lengthy KYC Procedures
KYC processes for cross-border payments are notoriously complex, with multiple verification steps and documentation requirements. For SMBs, particularly those without extensive compliance teams, this can lead to delays that disrupt critical transactions and hinder operations.
2. Inconsistent Regional Standards and Documentation Requirements
For SMBs engaging in cross-border transactions, dealing with differing regional standards and documentation requirements can be a significant hurdle. Variations in regulatory expectations across countries mean that businesses need to stay updated on each region’s standards to avoid delays or compliance risks. These inconsistencies often lead to confusion and missing documentation, which can stall the KYC process and delay onboarding.
3. Slow Verification Processes That Stall Business Momentum
Manual or slow verification procedures are especially problematic for time-sensitive industries. For SMBs relying on timely cross-border payments to vendors and partners, any holdup can impact service quality and customer satisfaction.
4. High Compliance Costs
Meeting the strict KYC and Anti-Money Laundering (AML) requirements can be costly for smaller businesses with limited resources since Compliance Officers demand relatively high salaries. For SMBs, these expenses can add up quickly, making compliance an added financial burden.
5. Lack of Transparency
SMBs often lack a clear sense of the KYC process once they submit their applications. Without status updates or clear timelines, they are left guessing about the next steps, causing frustration and uncertainty.
6. Risk of Account Closure
Finally, failing to meet KYC requirements can lead to account closures, disrupting ongoing operations and damaging business relationships. Many providers don’t allow for re-attempts at verification, which can be detrimental to SMBs.
Payset’s KYC Advantage: A Straightforward Process for Smooth Onboarding
For SMBs across sectors, a reliable and thorough KYC process for cross-border payments is more than just a regulatory requirement—it’s an opportunity to foster trust, establish credibility, and ensure that payments are processed smoothly.
With Payset, businesses benefit from a streamlined, transparent onboarding process supported by a dedicated team focused on solving the unique challenges of cross-border payments. We are committed to removing unnecessary obstacles so that you can be confident that every transaction will go through on time.
Our Promise: A Smooth KYC in 3 Simple Steps
1. Start Strong with Payset’s Automated KYC Process
Automated KYC verification tools eliminate the need for time-consuming manual checks, providing real-time fraud detection and identity verification. Payset’s automated system ensures that SMBs can complete onboarding in under 10 minutes, with minimal back-and-forth.
2. Be Documentation-Ready with Payset’s Expert Guidance
Having the right documents in hand from the beginning is key to a smooth KYC process. Payset’s detailed documentation checklist and dedicated support team help SMBs prepare and submit the correct information from the start, reducing the chance of delays.
3. Ensure Regional Compliance with the Support of Paysetters
With international payments, staying up-to-date on regional compliance standards is essential. Payset’s compliance team is dedicated to monitoring regional changes, ensuring that SMBs can meet evolving standards with ease and confidence.
Ready to Transform Your KYC Experience? Start with Payset Today!
Discover how simple and seamless cross-border payments can be with Payset’s efficient, fully-supported KYC process. Don’t let outdated processes hold you back—get started now and enjoy the confidence of reliable, on-time transactions every time.
Frequently asked questions
What is a multi-currency account/virtual IBAN?
A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.
You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.
A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.
- Funds can be deposited and withdrawn from the account for a small fee.
- Account holders can send and receive money with other Payset users for free.
- Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS.
- Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
- We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days
Are there limits on the amount of money I can send and receive?
No, there are no transaction limits on Payset multi-currency accounts.
However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.
How is Payset regulated?
Payset is regulated as an authorized Electronic Money Institution by the UK Financial Conduct Authority. Our activities are also regulated by the Payment Services Regulation 2017 and the Electronic Money Regulation 2011 (SI 2011/99).
How do I add money to my account?
How do I send money from my account?
Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.
Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.
Types of Multi-Currency Accounts
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