Every financial institution in the United States that distributes payments to businesses is required to verify the identity of the recipient. Kinnek partners with Stripe, an industry leader in payment processing, to collect and distribute payments from your customers to you. As a financial institution, Stripe has to maintain strict identity verification standards with all of its partners, including large companies like Best Buy, Salesforce, and Facebook. Banks, securities brokers and dealers, insurance companies, and investment firms follow similar protocol.
The reason for collecting your social security number comes from Title III of the Patriot Act. After September 11, 2001, the federal government enacted “Know Your Customer” regulation. Stripe has to make sure that the company representative for your Kinnek Pay account isn’t receiving payment for money laundering or terrorism purposes. Know Your Customer prevents other businesses from opening a Kinnek Pay account under your business name without your knowledge, helping to avoid fraud, embezzlement, and tax issues.
Don’t worry - this information is used only to verify your identity. It will never be used to perform any credit checks or background checks. The company representative who provides personal information is not personally liable for any activity on your Kinnek business account.
The information is also securely stored. Stripe is certified as a PCI Service Provider Level 1, which means that it applies the most stringent level of security available in the payments industry.