Question 01.

During setup, a payment provider asks a business owner to submit a copy of her business registration and a government-issued ID. What is this process called, and why do providers require it?

a. Payment tokenization, used to assign a unique identifier to the business account for security purposes
b. Know Your Customer, a standard identity check that regulated financial services use to confirm who they are working with
c. Anti-fraud screening, a one-time check that flags high-risk businesses before they can accept payments
d. Merchant onboarding, an internal process that varies by provider and has no regulatory basis