Customers vs. Counterparties | Conduit Guides
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.
If you're ever unsure how to classify a business or need support during onboarding, reach out to our team for assistance.
Frequently asked questions
My beneficiary is in pending status, how long does it take to get approved?
If the beneficiary is created within Conduit's operational hours, the review should take no more than 10 minutes.
What does the status of my payment mean?
In Compliance Review: Your payment is under compliance review.
Processing Settlement: Your payment is being prepared for settlement.
Completed: Your payment has been successfully sent.
Rejected: Your payment could not be processed.
If a payment remains in the same status for an extended period, please contact the Payment Ops team for assistance.
I invited a team member and they can’t log in. What should they do?
If a user you've invited is having trouble logging in after creating their account and sees a message like "Create your organization", they should return to the invitation email and log in using the link provided.
What type of supporting documentation do I need in order to send a payment?
To process a payment, you may need to provide one of the following:
- Invoice
- Agreement/Contract
- Purchase Order
Each document should include: Description of Goods/Services – Clearly outline the items, quantities, and prices.
Parties Involved – Names, addresses, and contact details of both buyer and seller.
Payment Terms – Payment amounts, due dates, and accepted methods.
Signatures – Required for agreements/contracts to formalize the transaction.
Business Justification – If the purpose is unclear, a signed statement explaining the transaction may be required.