Onboarding

Complete Payouts for Partners onboarding to process payouts on your platform.

During onboarding, PayPal automates Know Your Customer (KYC) verification and Know Your Business (KYB) verification to vet your sellers, runs identity checks, and conducts compliance checks (Office of Foreign Asset Control and Anti-Money Laundering) for you.

Payouts enablement  

Payouts and payouts models need to be enabled for the partners to process payouts. The account level flags and the process for enabling third and fourth party payouts is enabled by integration engineer or PSM. 

• MassPay Shared Permissions - Enables MassPay on the account for processing payouts.
• 3rd Party Sender Fields - Enables third party model enabling partner to be facilitating payouts for their customers.
• 4th Party Sender Fields - Enables fourth party model enabling partner to be facilitating payouts for their local bank partners and their customers.

Payouts accounts and profiles

The partner needs to create one PayPal business account and multiple PayPal profiles depending on the countries and currencies the partner wants to use for Payouts.

• One PayPal profile will act as the master profile. It facilitates all payout API calls and is used to consolidate any settlement reports.
• PayPal's recommendation is to setup one profile for processing payouts for all the currencies that the partner will initiate. There are exceptions to this based on compliance requirements in some regions like Brazil, Argentina, Malaysia and a separate profile is needed to process those currencies.
• The partner will have to provide all the details that are needed to setup these accounts to PayPal.

If the payee has an existing PayPal or Venmo account, they can withdraw funds from their wallets. If they do not have an existing account, they will be prompted to create account.

Compliance and risk process data requirements 

When a PayPal account is setup and during its lifecycle, there are regulatory obligations that need to be adhered and these processes are highly dependent on the country and region in which the account is setup.

Both the partners and the customers would go through these processes. Partners are obligated to provide all the data and documents required for this underwriting and due diligence when they create the business accout. PayPal can also help to collect information from partners.

Compliance checks can include but are not limited to:

• Global AML, OFAC and Sanctions screening
• Know Your Customer (KYC)/Know Your Business (KYB)
• CIP (Customer Identification Program)
• Business Stakeholder Verification

In the US, PayPal Holdings, Inc. is a licensed Money Services Business (MSB) that is subject to Bank Secrecy Act (BSA) obligations enforced by the Financial Crimes Enforcement Network (FinCEN). More specifically:

• Customer identity information is collected and verified in support of FinCEN Title 31 (Money and Finance), Subtitle B (Regulations Relating to Money and Finance), Chapter X (FinCEN), §1022.210.
• Anti-money laundering programs for MSBs who offer prepaid access accounts. PayPal's balance holding functionality falls within the scope of this provision, so CIP is triggered for consumers who wish to hold the Bank of America payout balances in their PayPal accounts.

Similarly, every country and region PayPal operates in has their own set of regulations and policies to which a customer has to adhere.