Why ProPay Requires Your SSN and Ownership Information:


ProPay is a registered payment processor, and because they handle credit card and ACH transactions, they must follow the same federal banking regulations as other financial institutions. This includes compliance with the Patriot Act, Know Your Customer (KYC) requirements, and as of May 2018, the FinCEN Beneficial Ownership Rule. This rule requires financial institutions to identify and verify the individuals who own or control a business, ensuring they are not on restricted lists such as OFAC or OSFI. All ProPay partners must comply with these requirements.


Your SSN is used solely to verify your identity. There is no credit check, and tax reporting is tied to your business EIN, not your SSN. That means:

  • Identity Verification – Just like opening a bank account, ProPay must confirm the identity of the person tied to each account. An SSN ensures validates the identity of the account holders and helps to prevent fraud.

  • Business Transparency – Federal law requires processors to know who the beneficial owners are (anyone with 25% or more ownership or significant control). This helps ensure accountability and prevents misuse of business entities.


Please know your information is kept secure and confidential and is only used for regulatory and compliance purposes. This requirement is standard for all U.S. payment processors, not unique to ProPay.


Defining a Beneficial Owner:

  • Any individual or entity that owns 25% or more of the business.

  • Any individual with significant control, such as a Managing Director or COO.

  • Even single-member LLCs fall under these rules.