Standard Accounts Guide

    Learn about the changes to Connect requirements, and how your connected accounts will be affected.

    To comply with the new Customer Due Diligence Rule (CDD Rule) and other Know Your Customer (KYC) requirements, Stripe made several updates to the Connect product. Many of these requirements relate to gathering information needed to verify companies and individuals. Stripe already manages this information collection for Standard accounts. To adhere to the new requirements, Stripe will start collecting more information from new U.S.-based businesses when they sign up for your platform. If you have existing users that are impacted by these changes, Stripe will contact them to collect the new information.

    FinCEN CDD overview

    The Financial Crimes Enforcement Network (FinCEN) is a bureau of the United States Department of the Treasury. It collects and analyzes information on financial transactions in order to prevent financial crime. On May 11th, 2018, FinCEN implemented the CDD Rule, which aims to improve financial transparency and requires that more information is collected about companies involved in payment processing. This information is used to properly verify companies, their beneficial owners, and their customers.

    The impact to Connect platforms is that new information needs to be collected from connected accounts. In particular, information about the beneficial owners of a business is now required. The FinCEN CDD rule requires information from the following types of individuals associated with a business.

    • Executive: An individual with significant management responsibility for the business, such as an executive officer or senior manager (e.g., CEO, CFO, General Manager, Vice President).
    • Owners: Every individual who, directly or indirectly, owns 25% or more equity in the company.
    • Account Opener: The individual creating the account. This is typically the end user who is interacting with your platform on behalf of the business.

    Verification information requirements

    The information that needs to be collected from connected accounts in the U.S. depends on whether they’re companies or individuals. Click the tabs below to view requirements for each classification.

    The lists below include information that was already collected for accounts to accept charges, and new information that needs to be collected (in addition to the previous requirements).

    Previous requirements for the account:

    • Entity type
    • External bank account

    New requirements for the account:

    • Industry
    • Estimated delivery window and/or annual revenue

    Previous requirements for the individual:

    • Legal name
    • Date of birth
    • Residential address
    • SSN

    New requirements for the individual:

    • Email address
    • Phone number

    The lists below include information that was already collected for accounts to accept charges, and new information that needs to be collected (in addition to the previous requirements).

    Previous requirements for the account:

    • Legal name
    • Business address
    • EIN (Employer Identification Number)
    • Entity type
    • External bank account

    New requirements for the account

    • Phone number
    • Industry
    • URL or product description
    • Estimated delivery window and/or annual revenue

    Previous requirements for the account opener:

    • Legal name
    • Date of birth
    • ZIP or SSN

    New requirements for the account opener:

    • Title
    • Email address
    • Phone number
    • SSN or government ID

    If certain thresholds are reached, the account opener might need to also provide:

    • Government ID

    Required information for owners:

    • Legal name
    • Email address

    If certain thresholds are reached, owners might need to also provide:

    • Date of birth
    • Residential address
    • Government ID or the last four digits of their SSN
    • Phone number

    Optional, but recommended, owner information:

    • Ownership percentage

    Required information for executives:

    • Legal name
    • Date of birth
    • Residential address
    • Government ID or the last four digits of their SSN
    • Title
    • Email address
    • Phone number

    User impact

    Accounts connecting to your platform have always gone through an OAuth flow to create and connect their accounts to your platform. This flow grants your platform permissions to take actions (e.g., processing charges) on behalf of your connected accounts. During this flow, users fill out an account application which, among other things, collects identity verification information. Stripe has updated this application so it collects the required information from new users.

    Existing users that need to provide the new required information will be contacted by Stripe later this year. They’ll receive emails and Stripe Dashboard notifications that will guide them through the information collection process.

    Statement descriptor requirements

    In an effort to provide a better user experience for card holders, later in the year we may also require some of your Standard accounts to update their statement descriptor information in their account settings. Stripe will reach out to you with more details prior to contacting your users. No action is required at this time.

    While not required, you might want to update any user-facing documentation you have that explains Stripe or account creation.

    In addition, it’s a best practice to identify accounts that can’t process payments in order to provide a better user experience. It’s possible for an account to be in this state due to issues with verification or missing information. While Stripe will continue resolving these cases directly with your users, it’s recommended that you direct users that can’t process payments to log in to their Stripe account to resolve the issue. To determine whether or not an account is chargeable, check the charges_enabled attribute on the Account object.

    Lastly, if you want to better understand the requirements, refer to our company ownership and beneficial owners support articles.

    Questions?

    We're always happy to help with code or other questions you might have. Search our documentation, contact support, or connect with our sales team. You can also chat live with other developers in #stripe on freenode.

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