Identity verification for payments

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When buying or selling on Flippa – especially for high-value transactions – you will likely be required to complete identity verification steps prior to your funds being secured in an escrow or trust account, or before one of our payments providers can send funds to you for the sale of your business or digital assets.

These are typically referred to as KYC (Know Your Customer), and AML (Anti-Money Laundering) checks. These sound intimidating, but they’re simply identity checks required by long established financial regulations around the world, and they are there to protect everyone involved. Here’s what you need to know about the KYC/AML requirements of our providers, and how to complete them.

 

Why is verification required?

Flippa’s marketplace involves the transfer of assets and often large sums of money. To comply with global financial laws, regulations, and to keep the marketplace safe from fraud, Flippa must verify the identities of the parties involved in a transaction. Both Buyers and Sellers typically need to complete ID verification before money changes hands (Payment options – Flippa Help Center). This ensures that each person is who they claim to be, and are not on any lists of prohibited or sanctioned persons, etc. It also helps prevent activities like money laundering or scams.

 

If using FlippaPay, identity verification is mandatory using our normal identity verification process in your Flippa account. If using Escrow.com via Flippa, both Flippa and Escrow.com have our own verification processes and you may need to complete verification for Escrow.com even if you have already verified your identity on Flippa.

 

In both cases, it's extremely important that you complete the identity verification process as yourself. You must not present the documents, 'selfie' photo, or other details of another person or multiple individuals. Attempted use of the documents or likeness of different people in your identity verification will typically cause failed verification, and a permanent removal or 'ban' from use of the payments provider and/or Flippa.

 

When and how to verify on Flippa

You can start the verification process as soon as you are in a live transaction (even earlier, actually). There are two main ways:

• During Deal Completion: After a sale is agreed, in the Flippa Deal Completion Area, you’ll see a prompt to Verify your identity if you haven’t already. Our integrated third-party verification provider, Sumsub, processes and securely manages verified identity data for Flippa customers.
  
  
• In your Flippa Account Settings: You can also go to your Flippa account, click on your profile avatar, and find Account Settings > Verification. From there you can initiate the verification process with Sumsub at any time (Identity Verification Process – Flippa Help Center). Doing it ahead of time can speed up any future sales or purchases.
  
  

What is involved in KYC verification?

Our provider, Sumsub, will ask you to provide a government-issued photo ID and possibly a selfie or short video for facial verification. Specifically, you will be prompted to select a valid identity document such as a passport, driver’s license, or national ID card.(Identity Verification Process – Flippa Help Center). You’ll then need to take a clear photo or upload a scan of that ID. Make sure:

• The image is clear, well-lit, and in full color.
  
  
• No information is cut off (show the entire document with all corners visible).
  
  
• It’s a valid, unexpired document which is valid for more than six (6) months in the future

After the ID upload, the system may ask you to take a 'selfie' or live photo through your webcam/phone. This is to match your face to the identity document (to ensure it’s really you and not someone using a stolen identity document). Follow the instructions closely, usually you position your face in a circle on screen, and it takes a photo from your computer's webcam or from the front-facing camera on a smartphone.

 

For address verification, sometimes (especially if large sums or certain risk triggers) Flippa could ask for a proof of address (like a utility bill or bank statement with your name and address) or other documents. Your permanent physical address should always be in your Flippa account profile, and is not visible to anyone outside of you and our team.

 

How long does verification take?

In many cases, verification is instant or review takes only a few minutes. Sumsub's automated system can verify your identity quickly if everything is in order. If the system flags something (blurry image, or needs human review), it could take a bit longer or they might ask for a resubmission. Our support team gets notified of any verification issues and might manually review documents or escalate them for further review if necessary Typically, KYC verification should not take more than 24-48 hours even in complicated cases; it’s often much faster.

 

Verification for Businesses (Know Your Business)

If you are buying or selling on behalf of a company (e.g., your company is the Buyer), there are extra steps which are required. Flippa will require company documents. For example:

• Proof the company exists and is active (e.g., Certificate of Incorporation, business registration certificate).
  
  
• A board resolution or letter authorizing you (the person) to act on behalf of the company in the transaction.
  
  
• These documents need to be sent to our team at postsale@flippa.com.
  
  
• Even with a company, the individual executing the deal will often need to do personal identity verification, too, and the name on the Flippa account and identity must match the name on the contract and the bank account sending funds (unless we have received company details as above).
  
  

If either party is a company, Flippa may manually handle that KYC (to ensure compliance). They might also coordinate with Escrow.com differently if escrow is used (e.g., we might set up the escrow between the actual company names if an agent was initially listed).

 

Anti-money laundering (AML) considerations

Sometimes for very large transactions, you may be asked for the source of funds or other due diligence. For instance, a Buyer might be asked to show a proof of funds (like a bank statement) especially if they’re funding via a company or from a high-risk jurisdiction. Flippa’s verification system checks watchlists and sanctions lists behind the scenes (Payments - Flippa). As long as you’re a normal individual or legit business, you won’t notice this – it’s seamless. If something does pop up (say your name coincidentally matches someone on a watchlist), we might reach out for additional clarification.

 

Verification on Escrow.com

If you’re using Escrow.com, be aware that Escrow.com might independently require verification. They often require the Buyer to verify their identity on transactions above a certain threshold (around $5,000 or more) or if using certain payment methods. Escrow.com’s process will be similar – you upload your identity via the process that they specify to you. Also, if you fund escrow by a wire from a business/company account, Escrow.com will need your business documents (they also have a company verification process). We link to Escrow.com’s company and identity verification FAQs, highlighting that they are a part of the escrow funding process if applicable.

 

Tips for smooth KYC/AML verification:

• Do it early: If you’re a buyer, consider verifying your identity right when you start making offers or once an offer is accepted, not at the last minute when you need to send payment. For sellers, as soon as you list a high-value asset, it might be wise to pre-verify. This avoids delays later on.
  
  
• Ensure all your profile info (name, address, etc.) matches your documents. Discrepancies can cause delays. Use your legal name (no nicknames) on your Flippa account.
  
  
• If you’re uncomfortable providing documents, remember this is standard in any major financial transaction online. Flippa's providers store this info securely and only use it for compliance purposes. It’s similar to being asked for your identity when opening a bank account or making an investment.
  
  
• If you run into trouble with an automated system, contact our team so we can take a closer look.
  
  
• Once verified, you usually don’t have to do it again for subsequent transactions, unless something changes or additional checks are required for a much larger deal.
  
  

Ongoing AML monitoring

Even after initial verification, our payment partners might monitor transactions for suspicious activity. If a transaction triggers some alarm (say unusual payment patterns), they might request additional info. This is rare for standard buy/sell transactions, but know that all these checks are in service of a safe marketplace and compliance with laws.

 

In review, KYC/AML verification is a necessary step when using Flippa’s secure payment options. Both the buyer and seller should be prepared to show who they are. This protects you too – it helps prevent fraudulent actors from being involved in your deal. Flippa has integrated a user-friendly way to do this verification, and if you follow the prompts, you’ll get through it quickly. Once done, you can proceed with confidence to fund the escrow and complete the sale, knowing all parties are verified.