Training Tip #1 – The Identity Checking Process

Having undergone the First Data Reseller accreditation program with NetPay, you will be aware of the need to prove the identity of the merchant you are signing up. Identity checking helps to prevent three types of fraudulent activity:

Identity fraud - when someone pretends to be someone they are not

Cardholder Not Present (CNP) fraud - this occurs when a customer buys goods or services without being present, using false or stolen credit card information

Money Laundering - this is the process of converting the proceeds of illegal activities into legitimate funds to conceal their illegal origin

What information is needed for an identity check?

The identity being checked is the personal information of the <strong>beneficial owner</strong>, not business information.

  • Full name
  • Date of birth
  • Position in company
  • Length of time with company
  • Minimum of three years’ worth of home addresses
  • Date at address
  • Accommodation Status
  • Telephone contact details


There are also two questions that will need to be answered:

Have you ever been adjudicated bankrupt or involved in any deed of arrangement? Yes or No

Have you ever been associated with any business which has been subject to a voluntary arrangement or has been in voluntary or compulsory liquidation, administration or receivership or which has ceased to trade for any reason? Yes or No

Who needs to have their identity checked?

Anyone who owns 25% or more of the merchant’s business is known as a beneficial owner
All beneficial owners need to be listed on application form

How is identity checked?

Historically, identity has been checked by viewing documentary proofs such as utility bills, birth certificates, and driving licences. Such documents can be stolen or forged, and providing them means customer authentication requires the post or face to face meetings, which takes considerable time.

First Data uses Experian’s e-identitycheck to authenticate an individual’s identity efficiently and confidently, without the need for documentary proofs. An Experian e-id check will be carried out on the individual who has signed the application form – normally the first principal on the form.

How does e-identitycheck work?

e-identitycheck accesses Experian’s Consumer Information Databases, which is the largest of its kind in the UK, with over 440 million consumer records. The individual’s details undergo comprehensive checks and an authentication score is provided, which reflects how much confidence you can have that the individual is who they say they are. The databases use data from a variety of independent sources.

Click on any of the sources below to find out more.

What score is needed to pass the identity check?

Experian's authentication index is used to provide a number between 00 and 90based on the details you provide, and the information in our database. This can be used to assess the applicant's authenticity and help you to make a decision about dealing with them. If the individual scores 40 or above, that is a pass and their identity is authenticated. If the individual scores less than 40, the reseller will be responsible for completing the Know Your Customer (KYC) process. Find out more about the KYC process later this week.

Do I need to tell the merchant their identity is being checked?

It is the reseller’s legal obligation to tell the customer that you are about to do any form of identity check. You must have verbally asked them for consent.

Does an identity check affect a customer’s credit rating?

No. An electronic note, or footprint, is left on their record to say that a check has taken place, but it does not affect the customer’s credit rating, is not used as part of the credit vetting process, and the information is not sold to third parties.