What is PSD2?
PSD2 is short for Payment Service Directive 2 (PSD2). PSD2 is an EU Directive regulating payment services within the EU. The PSD2 Directive aims to make it as easy, efficient and safe to make an international (EU) payment as it currently is to make a domestic one. The Directive does this by compelling the providers of such services to meet a strict set of requirements.
What is Stripe?
Stripe is a third-party payment services provider that enables the acceptance and processing of (online) payments. Stripe offers both online payment infrastructure as well as technical services to assist in fraud prevention.
How does GoodUp meet the requirements of the PSD2?
Why is that relevant, you ask?
- All transactions are secured using SSL (Secure Socket Layer). All processing of payments sees your data and information securely transferred.
- In addition, Stripe is also a PCI DSS Level 1 provider, the highest security grade attainable in respect of payment processing. This means that you can be sure that your information is secure.
- All payment data are encrypted and stored in Stripe’s advanced data centre. This enables the information to both retain its integrity and remain secure.
How does the Know-Your-Customer verification work?
The Know-Your-Customer (KYC) regulation is the best way to verify users. KYC has become a vital component of the sound and diligent manner in which we want to run our business. The KYC regulation calls for the collection, analysis and verification of basic ID information. You’ll find a KYC verification form and pay-out service fully integrated into all GoodUp platforms. The procedure comprises several steps for obtaining, verifying and validating an individual’s identity. This will require the provision of a copy of a valid ID of the initiator. Depending on the initiator’s country of residence, this could take the form of a copy of his passport, ID card, or driver’s license.
Why do I have to provide you with my ID data when I want to start up an activity?
Starting up a fund-raising activity means that you’ll be collecting funds (on behalf of an organisation or an individual) towards a certain goal. Now, as GoodUp itself isn’t deemed a financial institution under the law, it is precluded from conducting any third-party financial transactions. To this end, and following the PSD2, GoodUp has decided to team up with a payments services provider (see: Stripe) able to safely and securely accommodate any financial transactions related to GoodUp’s fund-raising activities. Stripe is allowed to collect and pay out the third-party funds that come with a fund-raising campaign. And we’re very glad they are. That’s because Stripe ensures that the identities of the activity initiators can be verified and that the funds collected on them do not end up where they shouldn’t. That is the reason that we ask our initiators to provide us with their identities.
Is Stripe entitled to ask me to provide them with a copy of my ID?
As a payments services provider, Stripe is legally entitled (and compelled) to check ID documentation.
Am I allowed to redact certain data on the copy of my ID I provide?
Please beware that if you elect to redact certain sections on the copy of your ID, Stripe, the payments services provider, will no longer be able to properly verify that document. As such, we would ask you to please refrain from redacting any sections of the copy of your ID that you upload to us.
Am I allowed to mark my copy of my ID as ‘COPY’?
Any writing on your copy will render it no longer properly legible. This will cause our payment services provider to no longer be able to properly verify that document.
Why do I have to provide my data when I’m looking to raise funds for an organisation?
As you are the activities initiator, you are responsible for the funds collected on it. You have to ensure that those funds end up at the correct organisation. That is why the Know-Your-Customer principle we employ, is all about identifying and recognising individuals, as opposed to identifying and recognising organisations. This implies that you, the initiator, should therefore ensure that the bank account details you provide, are correct.
Do the names I enter have to exactly match those listed on my ID?
Making sure that the names you enter on the verification form are an exact match to those listed on your ID is essential. I.e. you should enter the exact same names and surnames as are listed on your ID. These names will only be utilised in Stripe’s pay-out and verification and will not be disclosed anywhere on the platform itself.
Can I upload a copy of a document that is no longer valid?
No. You may not. Any ID you upload must be valid.