Customers vs. Counterparties

When creating a new payment on our platform, it's important to correctly identify whether the entity involved is a Customer or a Counterparty. These two roles serve different compliance and operational purposes, and using the correct classification ensures your transactions are processed smoothly and without delay.

Below, we explain what each term means and how to determine the correct classification for your use case.

What is a Customer?

A Customer is the ultimate sender that you serve as a client. In other words, if your company is facilitating payments on behalf of another business, that business is your Customer.

Customers:

• Are your clients / end users.
• Provide the funds that will be used in a payment.
• Must go through a KYB (Know Your Business)
• Can receive access to upcoming features like virtual USD accounts.
• Are listed and verified under the Customers section in the platform.
  
  

Example:

• A logistics company that uses your platform to pay their international suppliers.

What is a Counterparty?

A counterparty is the business your customer is sending funds to or receiving funds from — like a vendor, supplier, or contractor.

Counterparties:

• Must go to compliance review for the counterparty and the transactions.
• Contractors go through KYC (Know Your Customer)
• Are not your clients, but rather the commercial parties involved in a transaction.
• Are listed under the Counterparties section in the platform.
  
  

Example:

• A manufacturer in China receiving payment from your Customer.

Knowing Which One to Use

Here are a few questions that can help you classify the entity correctly:

Why It Matters

Correctly classifying entities as Customers or Counterparties helps ensure:

• Accurate compliance reviews.
• Fewer transaction delays or rejections.
• A smooth, scalable experience as your business grows.

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