Baskkett

WHAT IS KYC?

tl;dr KYC is how Stripe (Baskkett’s payment processor) protects Baskkett’s users from fraud and other suspicious activity

Know Your Customer or Know Your Client verification is the regulatory requirement that a payment processor, bank or other type of company in financial services must verify a client’s identity pursuant to the USA Patriot Act of 2001 which was passed after the September 11th, 2001 attacks to provide a variety of means to prevent terrorist behavior.

Why is it important?

This mandatory process is important as it allows payment processors, banks, and other financial service providers to identify:

  • fraud
  • bribery
  • money laundering and
  • other suspicious activity

What information are institutions required to verify for you to pass KYC verification?

As a part of this mandatory process, payment processors (such as stripe or paypal) or banks will usually first require:

  • A full legal name (a middle initial may be required)
  • The last 4 digits of a social security number (SSN) or the full SSN in some instances
  • The last 4 digits of an individual taxpayer identification number (ITIN) or the full ITIN in some instances
  • A phone number
  • A physical address which would be the address associated with a bank account or credit/debit card and
  • In some instances, more information may be required such as a state issued ID or driver’s permit

How does KYC apply to Baskkett?

Baskkett as a marketplace facilitates transactions between two users (user A who is paying and another user B who is receiving funds). Baskkett uses Stripe (see stripe.com) to process the transfer of these funds from user A to user B when a sale, rental or service is provided.

Before user A can pay for an item or service, the user must have valid payment method on file. As you would encounter with other platforms, user A would need to have a valid credit card or debit card on file. The onboarding involved in adding a valid credit or debit card does not require us to request any information beyond your legal name and the information associated with the actual card (card number, expiration date, billing zip code and the security code).

For user B to receive funds however, the onboarding process requires additional steps because of the USA Patriot Act of 2001. Stripe (and by extension Baskkett) is legally required to verify the identity of this user to ensure that the funds that user B is receiving will not be used for illegal purposes. As such, Stripe will request the aforementioned information (see What information are institutions required to verify for you to pass KYC verification?). The information that a user inputs into the app that is requested by Stripe on the “KYC verification” page is encrypted before it is sent to Stripe and so Baskkett is only informed if a user has “passed” or “failed” the KYC verification process but Stripe never discloses the last 4 digits of User B’s social security number to Baskkett and as such Baskkett will never have this information on file.

Is Baskkett in possession of my financial data such as my credit or debit card information as well as my bank account?

Baskkett is NEVER in possession of the details of a user’s credit card, debit card or bank account. When a user enters credit card, debit card or bank account information into the app, it is encrypted before it is sent to Stripe to be verified as a valid credit card, debit card or bank account. This information is legally stored with Stripe and not with Baskkett.

Please see Stripe’s documentation for more information on “Know Your Customer” obligations

https://support.stripe.com/questions/know-your-customer-obligations

Also, please see the Financial Crimes Enforcement Network’s page for more information about the USA Patriot Act of 2001

https://www.fincen.gov/resources/statutes-regulations/usa-patriot-act