Glossary
What is KYB?
KYB, or know your business, is the check a bank or payment provider runs to verify a company and its owners. See the steps, documents and an example.
Updated · By PayToMe Editorial
KYB stands for know your business. It is the process a bank or payment provider uses to verify that a company is real, legitimately registered and not being used for fraud or money laundering. It usually includes checking the people who own or control the business.
How it works
KYB follows the same logic as KYC, but the subject is an organization. The provider wants to answer three questions: does this business exist, who owns and runs it, and what will it do with the account?
Providers commonly ask for:
- Business details. Legal name, trading name, address, type of entity and registration number.
- Tax identifiers. In the US, an EIN for most entities.
- Ownership information. The individuals who own a significant share or control the company. Many providers collect details for owners above a set share, and each of those people may go through KYC.
- Business activity. What you sell, your website, expected monthly volume and typical ticket size.
- Supporting documents. Formation documents, a business license, or a bank statement.
The provider compares what you submit with official registries and other data sources, and screens the company and its owners against sanctions lists. Mismatches, such as a trade name that differs from the registered name, are the most common reason for delays.
KYB is usually the step that unlocks a merchant account or business payouts. Rules differ by country and provider, and this page is general information, not legal advice.
Example
A two-person design studio, Pixel and Pine LLC, applies for business payment processing.
PayToMe is in public beta and its online payments run through Stripe, the payment processor, so PayToMe does not verify businesses itself. You can still build invoices with the free invoice generator while you prepare documents for any provider you choose.
Related terms
- KYC: the identity check for individuals, including owners.
- Merchant account: the account KYB typically unlocks.
- EIN: the US tax ID many providers request.
- Payment processor: the company that usually runs the check.