Glossary · compliance and risk
What is the travel rule?
The travel rule requires identifying information about the sender and the recipient to travel with a transfer of value. It came from banking, it now applies to crypto transfers, and it is the reason a checkout asks for a name and date of birth before a payment goes through.
Why a compliance rule shows up in your conversion rate
The rule itself is unremarkable. Information about both parties has to accompany the transfer so it is traceable, which is what the banking system has done for decades.
Applying it to crypto is where it gets interesting, because a blockchain transfer carries no identity data at all. The information has to travel alongside, between the regulated firms at either end, which means those firms have to collect it.
For a merchant this surfaces as a form. Before a payment can process, the shopper supplies an email address, a name, a date of birth and a country of residence. It is a genuine drop-off point, and treating it as an unavoidable cost is a mistake.
You can pre-fill every one of those fields from your own checkout by passing a shopper object when you create the order. If you already know who the buyer is, and on most checkouts you do, making them type it again is a conversion loss you chose.
Compare
The rule in banking and in crypto
Same requirement, different plumbing, and the difference is where the friction comes from.
| Banking | Crypto | |
|---|---|---|
| Where the data travels | Inside the payment message itself | Alongside the transfer, between the regulated firms |
| Who collects it | The sending bank, from an existing customer | The provider, often from a first-time payer |
| Friction | Almost none. The bank already knows you | A form at checkout, unless it is pre-filled |
| What a merchant can do | Nothing. It is invisible | Pre-fill the fields from your own checkout |
The bottom right cell is the whole practical takeaway on this page.
How to handle it well
Three things, and the second one is worth real money.
Expect the fields
Email, name, date of birth and country of residence, collected before the payment processes. Design for them rather than around them.
Frequently asked questions
Which fields does the shopper have to give?
Email address, name, date of birth and country of residence, before the payment can process.
Can I collect them myself instead?
Yes, and you should if you already have them. Pass them when you create the order and the shopper does not see the form. How to pre-fill
Does it apply to every payment?
The obligation sits with the regulated firm handling the transfer, and the data collection happens on payments processed through it. Thresholds and specifics vary by jurisdiction and this is not legal advice.
Does it apply to payouts too?
Transfer details are collected in the payout flow as well, which is why a payout link asks the recipient for information before they can claim.