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# Requires Approval Flag on the Entity Object

**Release Type:** Enhancement

## Summary

The Entity object now includes a `requires_approval` boolean. It tells you whether transactions created for an entity will be placed on approval hold until the entity is approved. Creation is not blocked: if `requires_approval` is `true`, you can still create payouts and collects for the entity, and they are released once the entity is approved. Previously, this depended on account-level configuration that was not visible through the API. You can now check `requires_approval` on the entity itself.

The same flag is also visible on the Tazapay Dashboard.

## What Changed

### New `requires_approval` field

`requires_approval` is a read-only boolean that Tazapay derives. It is returned on the Entity object.

It is `true` when the entity is not yet approved and at least one of its `purpose_of_use` values requires an approved entity under your account's configuration:

| `purpose_of_use` | Applies to |
| - | - |
| `collect` | Collection accounts |
| `payout` | Payouts |
| `checkout` | Checkouts |

It is `false` when none of the entity's purposes require approval. Once the entity's `approval_status` is `approved`, it is always `false`.

### When `requires_approval` is `true`

For payouts and collects, you can start creating transactions now. They'll be placed on approval hold and will be released once this entity is approved.

This does not apply to on-behalf-of checkouts.

### Dashboard

`requires_approval` is also shown on the entity in the Tazapay Dashboard. Entities that require approval show a **Verification required** indicator next to the entity name.

![Verification required indicator on an entity in the Tazapay Dashboard](https://mintcdn.com/tazapay-58ae360f/LcVjudchnd2KZno5/images/entity-requires-approval-dashboard.png?fit=max\&auto=format\&n=LcVjudchnd2KZno5\&q=85\&s=3b957b01d988a3165f342db935a35a26)

## Affected Endpoints

* `POST /v3/entity`: Create Entity
* `PUT /v3/entity/{id}`: Update Entity
* `POST /v3/entity/{id}/submit`: Submit Entity
* `GET /v3/entity/{id}`: Fetch Entity
* `GET /v3/entity`: List Entities (each entity in the result includes `requires_approval`)
* Entity webhooks: the entity `data` payload now includes `requires_approval`.

## Compatibility

This is a backward-compatible enhancement. The field is additive and appears only in responses and webhook payloads. No request changes are needed.

## Relevant Links

1. [Create Entity API Documentation](https://developer.tazapay.com/api-reference/tazapay-api/create-entity.md)
2. [Entity API Documentation](https://developer.tazapay.com/api-reference/tazapay-api/entity.md)
3. [Entity Webhooks](https://developer.tazapay.com/api-reference/tazapay-api/entity-webhook.md)


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