Best Identity Verification Software for Retail

Need a top ID verification software solution for your business? These are some of the best solutions for retail businesses in 2026.

For retailers, offering online check is a must in 2026! Today’s customers expect that retail stores offer ecommerce or in-store pickup, and ecommerce continues to eat up most of the sales.

Selling online – especially if you offer age-restricted products – requires reliable and user-friendly ID verification software. An identity verification solution integrates into your ecommerce checkout; therefore, customers can complete a purchase after they have verified their age and identity.

However, this is a relatively new category of software, which makes it difficult for businesses to shop for reliable solutions. That’s why we made this comparison guide covering the best ID verification software platforms on the market today.

How Does Identity Verification Software Work?

For a retail owner, understanding the mechanics isn’t just about tech – it’s about risk management, efficiency, and profit.

Here’s how a modern identity verification service like FTx Identity secures your business in seconds:

1. Data Collection

The process starts seamlessly. A customer scans their ID or inputs basic information. A robust identity verification system captures this data instantly, whether at your SMARTtill Unit in-store or on your ecommerce checkout page.

2. Document Verification

Our AI-powered engine analyzes the document’s security features – holograms, microprint, and barcodes – to detect fraud. This critical step in the identification verification system ensures you’re not accepting fakes.

3. Biometric Verification

This is where cutting-edge digital identity verification solutions add a powerful layer of security. The system compares a live selfie or video to the photo on the ID document. This proves the person presenting the ID is its legitimate owner, effectively preventing identity theft.

4. Database Checks & Cross-Verification

The extracted data is cross-referenced against global authority databases, watchlists, and other sources in real-time. This is what separates a basic scanner from a true ID verification service built for compliance.

5. Risk Assessment

A smart identity verification solution doesn’t just check boxes; it analyzes the entire transaction. It assesses behavioral patterns and device information to generate a risk score, flagging potentially fraudulent activity for your review.

6. Final Verification and Approval

Based on the compiled data, a definitive result is delivered: Approved or Denied. This result is clear and immediate and provides proof of verification for your records – crucial for compliance audits.

7. Continuous Monitoring

The best ID verification software doesn’t stop at the point of sale. For recurring customers or subscription services, it can monitor for changes in status or risk, ensuring ongoing protection. Our upcoming FTx Identity Queue feature, using advanced camera systems, will automate this recognition from the moment a customer enters your store.

Why Do Retailers Need ID Verification Software?

If you sell an age-restricted product (like alcohol or CBD), you must legally check and verify your shopper’s IDs.

But how do you verify age online? And how can you protect your online business from phony accounts and underage purchases?

ID verification software makes this possible. These tools require a website visitor to upload an ID card photo and take a live selfie.

This data is then used to determine A) if the ID card is legitimate and B) that the individual using the information is present (selfie verification).

Online ID Verification in FTx Identity

Here you can visualize how top ID verification software works.

In FTx Identity, you can verify an existing customer when they shop online or a shopper who’s making their first purchase on your website. An ID verification solution makes it easy:

The FTx Identity Advantage: This entire complex process happens in under 30 seconds. It’s not just a compliance check; it’s a profit-protecting ID verification as a service that integrates directly with your FTx POS, streamlining operations and securing your revenue.

Top ID Verification Software Solutions

If you need ID checking software that can verify customers making online purchases or when they shop in-store, these are some of the best tools you can use:

1. FTx Identity

FTx Identity is a comprehensive identity management system designed to simplify customer verification and age checks online and in-store. Our all-in-one platform offers businesses a secure and efficient way to:

• Verify customer identities: Ensure you’re doing business with real people using AI-powered authentication tools and data extraction.
• Check IDs or accept mobile IDs: Build an ecommerce checkout with ID verification or offer customers a chance to create a mobile ID for in-store verification.
• Comply with regulations: Stay ahead of age-restricted product sales regulations with FTx Identity’s age verification features.
• Enhance customer experience: FTx Identity offers a seamless verification process for a faster and more user-friendly experience.

Features

Our platform caters to businesses of all sizes. Some of the most useful features include:

• Age Verification: Legally check the age of online shoppers or allow in-store shoppers to use mobile verification.
• AI-Powered Verification: Leverage advanced AI technology for faster and more reliable identity authentication.
• Biometric Authentication: Offer an extra layer of security with facial recognition.
• Seamless Integration: Integrate FTx Identity with your POS system or existing web application.

Pricing. FTx Identity offers various pricing plans to suit different business needs. Our plans start at $25 per month and only 50 cents per accepted verification. Plus, save on customer verification costs with our database. See how much you could be saving!

Is It Right for You?

FTx Identity is the best ID verification software for retailers who sell age-restricted products online like alcohol, CBD, tobacco, or vape. The platform can also integrate with your in-store ID checks, allowing customers to create a mobile ID card for use in-store, making it one of the top identity verification companies in the market.

2. Ondato

Ondato is a secure and efficient identity verification service for businesses. It helps businesses streamline their customer onboarding process by verifying the identities of their users.

Features

• Multiple verification methods: Ondato offers a variety of verification methods, including facial recognition, document verification, and biometric verification.
• Fast verification times: Ondato can verify identities in a matter of minutes, which can help businesses onboard customers more quickly.
• Compliance: Ondato helps businesses comply with Know Your Customer and Anti-Money Laundering regulations.

Pricing. Ondato offers a variety of pricing plans to suit the needs of different businesses. Plans start at about $1.00 per verification, with a monthly license fee required for some plans.

Is It Right for You?

Ondato is a good option for businesses of all sizes that operate in regulated industries, such as financial services.

3. ID.me

ID.me is a digital identity network that allows individuals to securely prove and share their identity online. It acts like a digital driver’s license, streamlining access to various services. However, businesses must accept ID.me data for their verification process.

Features

• Secure verification: ID.me uses a multi-factor verification process to confirm your identity. This includes document verification, selfies, and sometimes even video chats.
• Universal login: Once verified, you can use ID.me to log in to various websites and apps that participate in the network.
• Discounts and benefits: The top ID verification companies offer exclusive discounts and benefits to ID.me users.
• Control your data: ID.me gives you control over what information you share with websites and apps.

Pricing. ID.me is completely free to use for individuals. However, businesses that want to accept verifications through the platform must pay a fee.

Is It Right for You?

ID.me is a great option for anyone who wants a secure and convenient way to prove their identity online. It’s particularly beneficial for those who frequently access government services or those who want to take advantage of exclusive ID.me member deals.

4. Jumio

Jumio is a provider of identity verification solutions for businesses. It helps businesses onboard customers quickly and securely by verifying their identities through a combination of advanced technologies.

Features

• AI-powered document verification: Jumio uses AI to verify the authenticity of government-issued IDs like passports and driver’s licenses.
• Biometric facial recognition: Jumio ensures the person holding the ID matches the photo through facial recognition technology.
• Liveness detection: Jumio combats fraudulent use of photos and videos by verifying the user’s physical presence during the verification process.
• KYC/AML compliance: Jumio helps businesses comply with Know Your Customer and Anti-Money Laundering regulations.

Pricing. Jumio does not publicly disclose their pricing plans. They offer various tiers with features and costs tailored to business needs.

Is It Right for You?

Jumio is particularly well-suited for businesses in highly regulated industries like finance and healthcare or those processing high-value transactions.

5. Veriff

Veriff utilizes a combination of artificial intelligence and human expertise to offer a secure and efficient identity verification solution for businesses worldwide.

Features

• AI-powered Automation: Veriff’s AI engine analyzes submitted documents and compares them against a vast database to detect forgeries and manipulations.
• Liveness and Facial Recognition: Veriff goes beyond document verification by employing liveness detection to ensure a real person is present and facial recognition to confirm the user matches the ID photo.
• Human-in-the-Loop Option: For enhanced security or specific compliance needs, Veriff offers a hybrid approach that integrates human review alongside AI analysis.
• Global Reach: Veriff is available in many countries to help provide a smoother experience for users.

Pricing. Veriff offers a variety of pricing plans to cater to different business needs.

Is It Right for You?

Veriff is a valuable solution for online businesses of all sizes, particularly those operating in sectors with high security requirements like the finance, fintech, crypto, gaming, and mobility industries.

6. iDenfy

Features:

This provider offers a solid suite of standard features for general identity verification services, including:

• Document verification and liveness detection
• AML screening and Know Your Business (KYB) checks
• Facial recognition and biometric authentication
• Real-time verification

Pricing: Their Basic and Premium plans offer $1.35 & $1.30 per verification with a minimum commitment of $135 and $325/month, respectively.

Is It Right for You?

iDenfy is a capable player in the general ID verification software space. However, for a retailer, its model may lack the specialized, profit-driving tools you need. You’ll get verification, but will you get a direct path to reducing costs or earning cash back on verifications? Consider if a generalized solution meets your specific industry demands.

7. Incode

Features:

Incode positions itself as an enterprise-grade, AI-powered identity verification system with a focus on omnichannel experiences. Its features include:

• AI-powered identity verification
• Biometric authentication and liveness detection
• AML and KYC compliance
• Real-time decision-making and fraud prevention

Pricing: Enterprise-level custom pricing. Likely a significant investment aimed at larger corporations.

Is It Right for You?

Incode is a powerful solution for large global enterprises with complex, high-volume needs across multiple territories. As a retailer, you need a tool that understands the pace of retail operations and integrates at the point of sale, not just a verification checkpoint.

Benefits of the Best ID Verification Software

Choosing a top-tier ID verification service is a strategic business decision. For retailers, it’s about more than just checking an ID; it’s about building a safer, smarter, and more profitable operation.

1. Enhanced Security Measures to Safeguard Sensitive Information

Go beyond a simple visual check. Advanced digital identity verification solutions use AI and biometrics to create a formidable barrier against identity theft and fraud. This protects your business from costly chargebacks and fines, safeguarding both your revenue and your customers’ trust.

2. Ensuring Full Regulatory Compliance Across All Operations

For tobacco, liquor, or CBD sales, compliance isn’t optional. The best identity verification solutions are built with these regulations in mind, providing clear, auditable proof of verification for every transaction. This simplifies state and federal audits, turning a complex requirement into a simple, automated step at checkout.

3. Streamlined Onboarding Processes for Faster User Enrollment

Speed is currency in retail. An efficient identity verification system like FTx Identity verifies new customers within seconds. This eliminates long, manual form-filling and gets customers through your line – or through your online checkout – faster, directly boosting throughput and sales.

4. Expanding Business Capabilities with a Global Reach

While crucial for global ecommerce, this benefit also applies to diverse local communities. A robust ID verification software can accurately verify a wide range of international IDs, ensuring you can confidently serve every customer who walks through your door, expanding your potential market.

5. Optimizing Speed and Efficiency in Verification Workflows

This is pure operational efficiency. Automating the age and ID check process frees up your staff’s time. Instead of scrutinizing IDs and arguing with customers, they can focus on higher-value tasks like restocking, merchandising, and providing superior customer service.

6. Advanced Fraud Detection and Prevention Mechanisms

Modern identity verification services do more than just verify; they predict and prevent. By analyzing patterns and cross-referencing data in real-time, they proactively identify and flag suspicious activity before it costs you money, acting as a 24/7 digital security guard.

7. Delivering an Enhanced and Seamless Customer Experience

A quick, tech-forward verification process feels professional and secure. For legitimate customers, it’s a seamless step that builds confidence in your brand. Upcoming features like the FTx Identity Queue promise effortless, recognized entry – delivering unmatched convenience.

Top Considerations When Choosing the Best ID Verification Software

As you shop for ID verification software for your retail checkouts, there are a wide range of features to consider. The most important are:

1. Accuracy and Reliability

The cornerstone of any effective ID verification system is its accuracy. Imagine the chaos if a fraudulent user slipped through the cracks, potentially jeopardizing your business’s security and reputation.

The good news? FTx Identity’s liveness detection is a top ID verification tool that has an over 99% accuracy rate, which is essential for preventing underage sales.

Check for accuracy rates across the entire platform, including document verification, facial recognition, and liveness detection. False positives (incorrectly rejecting legitimate users) and false negatives (approving fraudulent attempts) should be minimal.

2. Compliance with Regulations

KYC and AML regulations are constantly evolving, making compliance a critical aspect.

Ensure your chosen ID verification solution meets the specific KYC/AML requirements for your industry and target markets. Look for a provider that offers regular updates and stays up with changing regulations.

3. User Experience and Ease of Integration

A frictionless ecommerce checkout is vital for customer acquisition and retention. Therefore, the ID verification software you choose shouldn’t be a pain for shoppers.

Choose a solution that offers:

• A user-friendly interface
• Mobile-optimized for on-the-go convenience
• Allows users to easily remedy verification issues

Smooth integration with your existing systems is also key. A ID verification API can minimize development time and ensure a streamlined onboarding experience for your users.

Additionally, look for a solution that integrates with your POS system. This will allow you to serve customers in-store or online.

4. Customization and Scalability

Business needs can change rapidly. Top ID verification solutions should be adaptable to your evolving requirements.

Look for an identity verification platform that allows customization of verification steps based on your risk tolerance and industry regulations. Scalability is also crucial. Does the solution have the capacity to handle increased user volumes as your business grows?

5. Cost-Effectiveness

Cost is naturally a significant factor. While advanced features often come at a premium, the chosen solution should offer value for money.

Consider a cost structure that aligns with your business model. Some providers offer pay-as-you-go options, while others have fixed monthly fees. Carefully evaluate the features and functionalities offered by each solution to ensure you’re getting the most out of your investment.

6. Accepted Identity Document Formats:

When choosing an identity verification software, it’s crucial to ensure it supports a diverse range of identity document formats commonly used in your target markets. This includes passports, driver’s licenses, national identity cards, and other relevant documents. Additionally, the software should comply with international standards for identity documents to guarantee compatibility and reliability.

7. Liveness Detection:

A robust ID verification solution should incorporate highly accurate liveness detection technology to prevent fraudulent attempts. This involves verifying that the person presenting the document is a real, living individual and not a fake image or video.

Wrapping Up

Shopping for the best ID verification software for your business isn’t easy. First, choose a solution with in-depth experience in your industry. A platform that primarily focuses on finance, for example, isn’t going to be great for an online liquor store.

Then, look at the user experience. Is it easy for customers to verify? What happens if a customer can’t be verified in the app? And how often do false positives happen?

A solution that is industry-specific and offers a great customer experience is always the best software to choose.