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Avoiding KYC Pitfalls: 3 Steps to Smooth Onboarding for SMBs

Business guides

Dec 10, 2024

4 min. read

James Irwin

Author

Seamless cross-border payments are essential for small to medium-sized businesses (SMBs). But with traditional banks and payment providers, companies often face a familiar roadblock before they can even make their first international transaction: a complex KYC process that can stretch from days to weeks.

While Know Your Customer (KYC) checks are fundamental to secure transactions, for many SMBs that work with an ecosystem of cross-border suppliers or partners, they can create a bottleneck that delays payments, strains business relationships, and puts deals at risk. Businesses must often navigate multiple verification steps, varying documentation requirements, and opaque processes that can bring their momentum to a halt.

Let’s examine why these KYC checks often fail and, more importantly, how your business can streamline the onboarding process to keep international payments flowing smoothly.

Why KYCs Fail: Common Challenges in the Cross-Border Payment Process

1. Complex and Lengthy KYC Procedures

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KYC processes for cross-border payments are notoriously complex, with multiple verification steps and documentation requirements. For SMBs, particularly those without extensive compliance teams, this can lead to delays that disrupt critical transactions and hinder operations.

2. Inconsistent Regional Standards and Documentation Requirements

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For SMBs engaging in cross-border transactions, dealing with differing regional standards and documentation requirements can be a significant hurdle. Variations in regulatory expectations across countries mean that businesses need to stay updated on each region’s standards to avoid delays or compliance risks. These inconsistencies often lead to confusion and missing documentation, which can stall the KYC process and delay onboarding.

3. Slow Verification Processes That Stall Business Momentum

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Manual or slow verification procedures are especially problematic for time-sensitive industries. For SMBs relying on timely cross-border payments to vendors and partners, any holdup can impact service quality and customer satisfaction.

4. High Compliance Costs

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Meeting the strict KYC and Anti-Money Laundering (AML) requirements can be costly for smaller businesses with limited resources since Compliance Officers demand relatively high salaries. For SMBs, these expenses can add up quickly, making compliance an added financial burden.

5. Lack of Transparency

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SMBs often lack a clear sense of the KYC process once they submit their applications. Without status updates or clear timelines, they are left guessing about the next steps, causing frustration and uncertainty.

6. Risk of Account Closure

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Finally, failing to meet KYC requirements can lead to account closures, disrupting ongoing operations and damaging business relationships. Many providers don’t allow for re-attempts at verification, which can be detrimental to SMBs.

Payset’s KYC Advantage: A Straightforward Process for Smooth Onboarding

For SMBs across sectors, a reliable and thorough KYC process for cross-border payments is more than just a regulatory requirement—it’s an opportunity to foster trust, establish credibility, and ensure that payments are processed smoothly.

With Payset, businesses benefit from a streamlined, transparent onboarding process supported by a dedicated team focused on solving the unique challenges of cross-border payments. We are committed to removing unnecessary obstacles so that you can be confident that every transaction will go through on time.

Our Promise: A Smooth KYC in 3 Simple Steps

1. Start Strong with Payset’s Automated KYC Process

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Automated KYC verification tools eliminate the need for time-consuming manual checks, providing real-time fraud detection and identity verification. Payset’s automated system ensures that SMBs can complete onboarding in under 10 minutes, with minimal back-and-forth.

2. Be Documentation-Ready with Payset’s Expert Guidance

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Having the right documents in hand from the beginning is key to a smooth KYC process. Payset’s detailed documentation checklist and dedicated support team help SMBs prepare and submit the correct information from the start, reducing the chance of delays.

3. Ensure Regional Compliance with the Support of Paysetters

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With international payments, staying up-to-date on regional compliance standards is essential. Payset’s compliance team is dedicated to monitoring regional changes, ensuring that SMBs can meet evolving standards with ease and confidence.

Ready to Transform Your KYC Experience? Start with Payset Today!

Discover how simple and seamless cross-border payments can be with Payset’s efficient, fully-supported KYC process. Don’t let outdated processes hold you back—get started now and enjoy the confidence of reliable, on-time transactions every time.

A UK multi-currency account can streamline how you manage your finances. Whether for business or personal use, a multi-currency account provides you with added freedom and flexibility and removes barriers to payments and transfer methods.

Here is everything you need to know about UK multi-currency accounts.

A Payset UK multi-currency account is a single account with which you can hold, send, and receive funds in up to 38 currencies. This allows business or personal account holders to save endless time and money on foreign exchange, and money transfers, which from a traditional bank account would be far more expensive and slow.

From your personal UK-based IBAN account, you can transfer money to bank accounts around the world as well as send and receive free and instant transfers to and from other Payset clients. You can send funds using a diverse network of payment networks, including SWIFT, SEPA, Target2, Faster Payments, CHAPS, and more.

When you exchange funds from one currency to another, there are no margins added to our exchange rates and the fees are clearly displayed before you click send. If you, for example, work with multiple currencies, make purchases in other countries, travel frequently, invest in foreign currencies, pay staff in other countries, or receive payments in other currencies, a multi-currency account can save you time, money, and work compared to a traditional bank account.

There are lots of banking institutions and financial services that will aid you in opening a multi-currency account. Often they can allow you to convert and transfer a considerable number of currencies.

Before you open a UK multi-currency account with any platform or service, make sure you have explored all of the different options available to you and have found the best type of account to suit your financial needs.

How Does a UK Multi-Currency Account Work?

A UK multi-currency account works in the same way as a standard bank account or electronic wallet. Although the services provided will change depending on where you choose to open your account and who you choose to open the account with, all multi-currency accounts should allow you to:

Withdraw money

Send and receive payments in multiple currencies internationally

Access your funds for electronic transfers

Earn interest on your account total

In the same way that fees can occur with a standard bank account you may run into additional charges with a UK multi-currency account.

You could be charged for a number of actions including; making withdrawals, account opening and closure fees, transfer fees, and more.

The frequency or amount of these charges will often vary and if you ask your banking agency they will usually be able to tell you exactly how much you will be charged and which services you will be charged for before you open your account.

Alternative Options to Consider Before Opening a UK Multi-Currency Account

There are many alternatives to opening a UK multi-currency account. For example, there are also money transfer services and online electronic wallets such as Payset that allow you to send your money in over 34 currencies without the need for a UK multi-currency account. You can start sending money across the globe or in person today using your existing bank account.

Frequently asked questions

What is a UK multi-currency account/IBAN?

Are there limits to the amount of money I can send and receive with a UK multi currency account?

Which currencies can I send and receive in my UK multi currency account?

How do I add money to my UK multi currency account?

Types of UK Multi-Currency Accounts

Multi-currency IBAN accounts
Personal multi-currency accounts
Multi-currency accounts for business
Multi-currency cash passports
Multi-currency wallets

Information contained in this publication is provided for general education and information purposes only and should not be construed as legal, tax, investment or other professional advice or recommendation, or an offer of, or solicitation for, any transactions or any other actions (or refraining therefrom); This material has been prepared without taking into account any particular recipient’s financial objectives or situation. We make no warranty, guarantee or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose; Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation or advice to take or refraining from any action; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Pay Set Limited, or vice versa; Market information is made available to you only as a service, and we do not endorse or approve it; Any reference to past performance, predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future outcomes.