The Bread and Butter of Online Verification

There can be a lot to manage when deciding when and where to verify your customers for online transactions. In the age of the internet, our identities have become increasingly digital and the struggle between friction and risk is all too real. Depending on your products, geographic location, or the geographies that you serve, you may be subject to different regulations. So to help ease troubled minds, we’ve put together the top three topics of discussion come up when our clients are implementing our online age and identity verification solutions.

KYC & Trust

KYC can be a daunting pool to dive into, but we’re here to help. A well-planned KYC policy has more benefits than just avoiding fines.

KYC is an important vehicle for fostering trust between you and your clients. With data breaches happening more often, consumers are looking for signs that their information will be protected. While developing a rigorous KYC process may seem like a hassle, consumers will opt for the company with a better reputation. They will feel safe and secure as they navigate your KYC process, even if there’s more friction.


Customers aren’t the only ones that companies need to form trust with. Regulations can be tricky to navigate and the regulators themselves can be a powerful asset for navigating them. Building trust with the regulators takes time and continuous effort. Establishing a strong, professional relationship can go a long way towards building trust and good faith.

Staying compliant with global regulations, like GDPR and COPPA, can also help your reputation and avoid lost revenue to competitors, who are known for their compliance. Given today’s global economy, it’s more than likely that you have clients in Europe.

GDPR isn’t the only set of regulations that you need to factor in, especially if you’re doing business on a global scale. The USA PATRIOT ACT, COPPA, and BSA requirements are a few others that you may need to check. We highly recommend documenting your processes for every step of your KYC solution.

If we could only make one suggestion, it would be to avoid shortcuts through all these murky waters. It’s better to stay compliant to avoid fines and help maintain a strong reputation.

Customer Friction vs Risk for you

The challenge implementing an online verification is that push and pull between customer friction and the risk for you. Multi-factor authentication mechanisms are crucial once identifying an individual as suspicious. Out of Band (OOB) and other multi-factor authentication methods can be built in in the user experience so they appear as a natural part of your KYC process.

A word of caution: Just because that individual is suspicious, doesn’t mean that he or she is a fraudster. When an automated verification or authentication method fails, sometimes human intervention may be the best next step. By following up with a live conversation, you’re showing that customer some extra TLC and at the same time, building trust.

Whether they know it or not, online consumers are accustomed to seeing KYC and OOB solutions around the web. If they’re implemented well, consumers won’t feel extra friction that you’ve created to reduce your own risk.

If you still have questions around Friction vs Trust, check out our Ask Us Anything post on escalation best practices!