diff --git a/apps/api/src/app.module.ts b/apps/api/src/app.module.ts
index 4e4ed36..b9b5795 100644
--- a/apps/api/src/app.module.ts
+++ b/apps/api/src/app.module.ts
@@ -1,5 +1,5 @@
 import { Module } from '@nestjs/common';
-import { APP_GUARD } from '@nestjs/core';
+import { APP_GUARD, APP_FILTER } from '@nestjs/core';
 import { ThrottlerModule } from '@nestjs/throttler';
 import { AppController } from './app.controller';
 import { AppService } from './app.service';
@@ -15,6 +15,7 @@ import { TransactionsModule } from './transactions/transactions.module';
 import { WorkerModule } from './modules/worker/worker.module';
 import { WebhookModule } from './webhooks/webhook.module';
 import { PaymentsModule } from './payments/payments.module';
+import { PrismaClientExceptionFilter } from './prisma/prisma-exception.filter';
 
 @Module({
   imports: [
@@ -47,6 +48,10 @@ import { PaymentsModule } from './payments/payments.module';
       provide: APP_GUARD,
       useClass: ThrottlerRedisGuard,
     },
+    {
+      provide: APP_FILTER,
+      useClass: PrismaClientExceptionFilter,
+    },
   ],
 })
 export class AppModule {}
diff --git a/apps/api/src/prisma/prisma-exception.filter.ts b/apps/api/src/prisma/prisma-exception.filter.ts
new file mode 100644
index 0000000..38c05ab
--- /dev/null
+++ b/apps/api/src/prisma/prisma-exception.filter.ts
@@ -0,0 +1,36 @@
+import { Catch, ExceptionFilter, ArgumentsHost, HttpStatus } from '@nestjs/common';
+import { Prisma } from '@prisma/client';
+import { Response } from 'express';
+
+@Catch(Prisma.PrismaClientKnownRequestError)
+export class PrismaClientExceptionFilter implements ExceptionFilter {
+  catch(exception: Prisma.PrismaClientKnownRequestError, host: ArgumentsHost) {
+    const ctx = host.switchToHttp();
+    const response = ctx.getResponse<Response>();
+
+    let status: HttpStatus;
+    let message: string;
+
+    switch (exception.code) {
+      case 'P2002':
+        status = HttpStatus.CONFLICT;
+        const target = exception.meta?.target as string[];
+        message = `Unique constraint failed on fields: ${target.join(', ')}`;
+        break;
+      case 'P2025':
+        status = HttpStatus.NOT_FOUND;
+        message = exception.message || 'Record not found';
+        break;
+      default:
+        status = HttpStatus.INTERNAL_SERVER_ERROR;
+        message = 'Internal server error';
+        break;
+    }
+
+    response.status(status).json({
+      statusCode: status,
+      message,
+      error: HttpStatus[status],
+    });
+  }
+}
diff --git a/packages/database/migrations/migrations/202606292030_customers/migration.sql b/packages/database/migrations/migrations/202606292030_customers/migration.sql
new file mode 100644
index 0000000..04452c5
--- /dev/null
+++ b/packages/database/migrations/migrations/202606292030_customers/migration.sql
@@ -0,0 +1,32 @@
+-- CreateEnum
+CREATE TYPE "CustomerStatus" AS ENUM ('NEEDS_INFO', 'PROCESSING', 'APPROVED', 'REJECTED');
+
+-- CreateTable
+CREATE TABLE "customers" (
+    "id" UUID NOT NULL,
+    "merchant_id" UUID NOT NULL,
+    "first_name" TEXT,
+    "last_name" TEXT,
+    "email" TEXT,
+    "phone_number" TEXT,
+    "country_code" TEXT,
+    "bank_account_number" TEXT,
+    "bank_routing_number" TEXT,
+    "date_of_birth" TEXT,
+    "street_address" TEXT,
+    "city" TEXT,
+    "region" TEXT,
+    "postal_code" TEXT,
+    "status" "CustomerStatus" NOT NULL DEFAULT 'NEEDS_INFO',
+    "created_at" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
+    "deleted_at" TIMESTAMP(3),
+    "updated_at" TIMESTAMP(3) NOT NULL,
+
+    CONSTRAINT "customers_pkey" PRIMARY KEY ("id")
+);
+
+-- CreateIndex
+CREATE INDEX "customers_merchant_id_status_idx" ON "customers"("merchant_id", "status");
+
+-- AddForeignKey
+ALTER TABLE "customers" ADD CONSTRAINT "customers_merchant_id_fkey" FOREIGN KEY ("merchant_id") REFERENCES "merchants"("id") ON DELETE CASCADE ON UPDATE CASCADE;
diff --git a/packages/database/migrations/schema.prisma b/packages/database/migrations/schema.prisma
index a515a75..eddaebf 100644
--- a/packages/database/migrations/schema.prisma
+++ b/packages/database/migrations/schema.prisma
@@ -13,6 +13,13 @@ enum KycStatus {
   REJECTED
 }
 
+enum CustomerStatus {
+  NEEDS_INFO
+  PROCESSING
+  APPROVED
+  REJECTED
+}
+
 enum PaymentIntentStatus {
   PENDING
   DETECTED
@@ -33,10 +40,37 @@ model Merchant {
   webhookEvents    WebhookEvent[]
   apiKeys          ApiKey[]
   auditLogs        AuditLog[]
+  customers        Customer[]
 
   @@map("merchants")
 }
 
+model Customer {
+  id                 String         @id @default(uuid()) @db.Uuid
+  merchantId         String         @map("merchant_id") @db.Uuid
+  firstName          String?        @map("first_name")
+  lastName           String?        @map("last_name")
+  email              String?
+  phoneNumber        String?        @map("phone_number")
+  countryCode        String?        @map("country_code")
+  bankAccountNumber  String?        @map("bank_account_number")
+  bankRoutingNumber  String?        @map("bank_routing_number")
+  dateOfBirth        String?        @map("date_of_birth")
+  streetAddress      String?        @map("street_address")
+  city               String?
+  region             String?
+  postalCode         String?        @map("postal_code")
+  status             CustomerStatus @default(NEEDS_INFO)
+  createdAt          DateTime       @default(now()) @map("created_at")
+  deletedAt          DateTime?      @map("deleted_at")
+  updatedAt          DateTime       @updatedAt @map("updated_at")
+
+  merchant Merchant @relation(fields: [merchantId], references: [id], onDelete: Cascade)
+
+  @@index([merchantId, status])
+  @@map("customers")
+}
+
 model PaymentIntent {
   id         String                @id @default(uuid()) @db.Uuid
   merchantId String                @map("merchant_id") @db.Uuid