Requirements for SSN in Re-Leased Pay

  • Updated

As a Re-Leased Pay customer, you may have come across a step that requires you to provide your Social Security Number (SSN). This article clarifies why the SSN is essential when using our service, explores the reasons behind this requirement, and answers common queries related to SSN submission. Our intention is to help you comprehend the critical role of SSN from a compliance and security perspective and ensure you have a seamless experience with Re-Leased Pay.

 

Why is an SSN required?

The necessity of providing an SSN stems from several important factors:

  1. Identity Verification: An SSN is a unique identifier for individuals in the U.S. Our payment processor, Stripe, uses this information to confirm identities and mitigate the risk of fraudulent activities.

  2. Regulatory Compliance: To align with financial laws, payment processors like Stripe are obligated to collect SSNs. This compliance pertains to anti-money laundering, fraud prevention, and other legal mandates that safeguard financial transactions.

  3. Know Your Customer (KYC) Processes: KYC regulations require financial services to maintain detailed customer records. An SSN serves as a critical piece of this data collection, enabling a thorough KYC process.

  4. Financial Transparency and Accountability: Gathering SSN details assists Stripe in upholding the integrity of their platform, fortifying user trust, and ensuring that all regulatory standards are met.

The requirement for providing a Social Security Number (SSN) may be implemented or enforced at different stages for various reasons:

  1. Business volume threshold: Stripe's threshold for requiring the full Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for US resident representatives and owners is once the payments volume exceeds $500,000. This means that when the cumulative payment volume processed through a Stripe account exceeds $500,000, individuals associated with the account, such as representatives and owners, will be required to provide the full 9-digit SSN or ITIN for verification purposes.

    Additionally, the last 4 digits of the SSN or ITIN are required at onboarding for all connected account types, regardless of payment volume. If the last 4 digits fail verification at onboarding, representatives will need to provide the full 9 digits. If the full 9-digit ID number fails verification, representatives will need to upload an ID document.

  2. Regulatory Changes: Regulatory requirements and compliance standards evolve over time. New regulations or updates to existing ones may necessitate additional information collection, such as SSNs, to meet compliance obligations. Stripe may have implemented the SSN requirement in response to new regulatory guidelines or changes in industry standards.

  3. Enhanced Due Diligence: Companies like Stripe periodically review and update their verification processes to enhance due diligence and risk management practices. Implementing new requirements, such as collecting SSNs, could be part of Stripe's ongoing efforts to strengthen its compliance procedures and mitigate risks associated with financial crimes.

  4. Customer Incidents: Incidents of fraud, or emerging trends in financial crime may prompt companies to reassess their verification requirements and implement new measures to address potential risks. The SSN requirement could be a response to such feedback or incidents, aimed at enhancing security and trust within the platform.

The requirement of an SSN in Re-Leased Pay is a vital element in maintaining a secure, transparent, and compliant payment system. By providing your SSN, you are contributing to our mutual dedication to uphold a secure and reliable payment environment that benefits all users.

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