Know Your Customer (KYC) is the process of verifying the identity of a user before providing access to regulated or financial services through LedgerBlock.

KYC helps businesses establish who their customers are, meet applicable compliance obligations, and control access to financial capabilities based on the user's verification level.

Why KYC is Required

KYC is required as part of financial compliance and regulatory requirements.

Before providing certain financial services, businesses need to establish the identity of the individuals using their services. KYC helps reduce the risk of:

• Identity fraud
• Account misuse
• Money laundering
• Terrorist financing
• Financial crime
• Use of financial services by unidentified individuals

LedgerBlock provides KYC infrastructure that allows merchants to verify their users before granting access to capabilities that require identity verification.

The KYC level completed by a user also determines the financial capabilities available to that user.

KYC Pricing

LedgerBlock charges merchants for KYC verification.

KYC charges are denominated in USD.

The merchant is charged when a user under the merchant's account completes the applicable KYC process.

How KYC Billing Works

The billing flow is:

Merchant
   ↓
Create User
   ↓
Submit KYC
   ↓
User Completes KYC
   ↓
KYC Verification Completed
   ↓
KYC Fee Charged in USD
   ↓
Fee Deducted from Merchant Billing Wallet

KYC charges are applied at the merchant level, rather than being charged directly to the individual user.

For example, if a merchant has multiple users completing KYC, the applicable KYC fee for each completed verification is charged to the merchant's billing wallet.

KYC Wallet Setup

A merchant must maintain sufficient balance in their billing wallet to cover KYC charges.

The billing wallet is used to pay for KYC services and other applicable merchant-level charges.

Before initiating KYC verification for users, ensure that the merchant's billing wallet has sufficient funds.

If the billing wallet does not have sufficient funds, the merchant may be unable to complete the KYC operation.

Important: KYC charges are denominated in USD. Ensure that the merchant's billing wallet is sufficiently funded before processing user KYC.

KYC Tiers

LedgerBlock uses KYC tiers to determine the level of verification completed by a User and the capabilities available to that User.

Each tier may require additional user information or verification compared with the preceding tier.

A higher KYC tier can provide access to additional capabilities that are not available at lower tiers.

The general relationship is:

KYC Tier
    ↓
Verification Requirements
    ↓
Verification Status
    ↓
User Capabilities

Tier 1

Tier 1 provides the initial level of KYC verification.

Once the User satisfies the requirements for Tier 1, the User becomes eligible for the capabilities associated with that tier.

For example, Tier 1 allows a User to create a wallet PIN.

See the API documentation for the exact Tier 1 requirements and implementation details.

Tier 2

Tier 2 provides a higher level of verification and can unlock additional capabilities beyond those available at Tier 1.

Tier 2 requires additional user information and/or verification.

See the Create KYC API documentation for the required fields and request structure.

Additional Tiers

Where additional KYC tiers are available, each tier may introduce additional verification requirements and capabilities.

The applicable requirements and available capabilities should be checked against the KYC tier being requested.

KYC Requirements

The information required for KYC depends on the KYC tier and the type of verification being performed.

When creating KYC, your application must provide the required information specified by the relevant API.

For example, a KYC request may be associated with a User using:

{
  "user_ref": "USER_REFERENCE",
  "kyc_type": "tier_2",
  "phone": "08000000000",
  "country": "NG",
  "tag": "KYC_PROVIDER"
}

The exact required fields depend on the KYC tier and verification flow.

For the complete request parameters, see:

Create KYC API → [Link to Create KYC API]

KYC Tag

The tag identifies the company or provider responsible for performing the KYC verification.

The appropriate tag should be supplied when required by the KYC integration.

KYC Verification

After KYC information has been submitted, the information is processed through the applicable verification flow.

The KYC status should be checked before granting a User capabilities that require successful verification.

A typical flow is:

KYC Submitted
      ↓
Verification Processing
      ↓
KYC Verified
      ↓
KYC Tier Confirmed
      ↓
Capabilities Unlocked

Your application should not assume that submitting a KYC request means the User has successfully completed verification.

Always use the appropriate KYC response or status endpoint to determine the current verification status.

See:

KYC API Docs → KYC

Capabilities by KYC Tier

KYC tiers determine the capabilities that can be made available to a User.

The capabilities listed above are illustrative of the tier structure. Refer to the latest API documentation for the complete capability requirements for each tier.

KYC Pricing Table

KYC pricing is charged in USD and deducted from the merchant's billing wallet when the applicable KYC verification is completed.

Pricing Notes

• KYC pricing is denominated in USD.
• KYC fees are charged to the merchant, not directly to the User.
• Charges are deducted from the merchant's billing wallet.
• Ensure sufficient balance is available before initiating KYC verification.
• Pricing may vary by KYC tier.
• Check the current pricing table before implementing or budgeting for KYC verification.

KYC Integration Flow

A typical KYC integration follows this sequence:

1. Create User
       ↓
2. Select Required KYC Tier
       ↓
3. Submit KYC
       ↓
4. User Completes Verification
       ↓
5. KYC Verification
       ↓
6. KYC Fee Charged to Merchant
       ↓
7. KYC Status Confirmed
       ↓
8. User Accesses Eligible Capabilities

For implementation details, refer to the corresponding API documentation:

• Create User
• Create KYC
• Get KYC Tiers & Requirement
• Register KYC Wallet for billing