Why is ID Verification Limited to Phone Authentication in the Docusign API?

There are multiple types of recipient authentication you can implement via API and ID Verification is one of them: https://developers.docusign.com/docs/esign-rest-api/esign101/concepts/recipients/auth/

If you are attempting to implement ID Verification via API, please refer to this how-to article for more information: https://developers.docusign.com/docs/esign-rest-api/how-to/id-verification/

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I can only see the phone authentication option and not the ID Verification option. Could this be a region-related issue? I'm based in India.

I think the ID Verification feature is not enabled on your account. ID verification is available to develop API integrations in developer (demo) accounts, but is not enabled by default. To enable IDV in your developer and/or production accounts, contact your Docusign Account Manager or Partner Account Manager. 

You can find the same note under the “ID Verification” section of this page: https://developers.docusign.com/docs/esign-rest-api/esign101/concepts/recipients/auth/

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Rodolfo | Docusign Community Moderator
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