KYC Explained: Why Neobanks Require Your Passport
David Chen
Regulatory Consultant • Oct 05, 2025
Introduction
"Why do I need to upload a selfie?" "Why does this app need my driver's license?"
These are the most common complaints users have when signing up for Virtual Credit Card (VCC) providers like Wise, Revolut, or Mercury. This process is called KYC (Know Your Customer), and it is not just the app being annoying—it is a global legal requirement designed to fight financial crime.
The Three Pillars of KYC
Financial institutions are required by law (such as the USA PATRIOT Act in the US or 5AMLD in Europe) to perform due diligence.
- Customer Identification Program (CIP): Verifying you are who you say you are.
- Data: Name, DOB, Address.
- Proof: Government ID, Utility Bill.
- Customer Due Diligence (CDD): Assessing the risk you pose.
- Question: "What is the nature of your business?"
- Goal: Ensuring you aren't using the platform for money laundering.
- Continuous Monitoring: Watching transactions for suspicious patterns.
Why "No KYC" VCCs are a Myth (or a Scam)
You might see websites advertising "Anonymous VCC" or "No KYC Cards." Be extremely cautious.
Legitimate payment networks (Visa/Mastercard) require issuers to identify cardholders. A provider offering truly anonymous cards is likely:
- Operating illegally and could be shut down overnight (taking your money with them).
- Using stolen identities to open accounts.
- A "honeypot" scam designed to steal your crypto.
How to Pass KYC Smoothly
To ensure your business account is approved quickly:
- Clear Photos: No glare on your ID. All four corners visible.
- Matching Addresses: Your utility bill address must match the address you typed in the application exactly.
- Business Visibility: Have a live website or LinkedIn profile for your business. Financial institutions want to see that you are an active, operating entity.
Conclusion
KYC protects the financial system and, ultimately, your funds. By using fully compliant, regulated providers, you ensure that your business capital is safe and your cards won't be randomly terminated.