A Merchant verification resource in Finix's system represents a request sent to a payment processor to check the integrity of a given merchant. After performing a number of different checks, the processor will decide if a merchant is trustworthy enough to process payments.
Verification responses from Finix's API have three possible statuses: SUCCEEDED, FAILED, or PENDING.
A status of SUCCEEDED means that the merchant was successfully verified and is now ready to process payments.
A status of PENDING could mean a variety of things:
- The request is still being processed autonomously by the processor (should be completed within 30 minutes).
- The verification request has been flagged and sent to manual review. In manual review, an underwriter at the processor reviews the merchant's information. The manual review can take up 10 business days to complete. For Litle, a verification in manual review will fail immediately.
A status of FAILED and can be due to a clerical error which, can be easily remediated and resubmitted. Some examples of clerical reasons are listed below:
- Need to provide owners SSN
- Error in request: bank routing number: US routing number must be 9 digits
- Address contains PO BOX
- Value is longer than the maximum length, dba Name should be alphanumeric with special characters space _ - & . ', and less than 40 characters
Note: The processor may discover during the verification process that the merchant has previously conducted fraudulent business. In these cases, the verification decision is final, and the verification cannot be resubmitted. An example of fraudulent business is excessive chargebacks.