diff --git a/.typos.toml b/.typos.toml
index 79c86a39c6..d2ffb8a5b1 100644
--- a/.typos.toml
+++ b/.typos.toml
@@ -1,5 +1,8 @@
 [default]
 check-filename = true
+extend-ignore-identifiers-re = [
+    "UE_[0-9]{3,4}", # Unified error codes
+]
 
 [default.extend-identifiers]
 ABD = "ABD"  # Aberdeenshire, UK ISO 3166-2 code
@@ -38,7 +41,6 @@ ws2ipdef = "ws2ipdef" # WinSock Extension
 ws2tcpip = "ws2tcpip" # WinSock Extension
 ZAR = "ZAR"  # South African Rand currency code
 JOD = "JOD" # Jordan currency code
-UE_000 = "UE_000" #default unified error code
 
 
 [default.extend-words]
diff --git a/crates/api_models/src/api_keys.rs b/crates/api_models/src/api_keys.rs
index 65cc6b9a25..d25cd989b0 100644
--- a/crates/api_models/src/api_keys.rs
+++ b/crates/api_models/src/api_keys.rs
@@ -29,8 +29,8 @@ pub struct CreateApiKeyRequest {
 #[derive(Debug, Serialize, ToSchema)]
 pub struct CreateApiKeyResponse {
     /// The identifier for the API Key.
-    #[schema(max_length = 64, example = "5hEEqkgJUyuxgSKGArHA4mWSnX")]
-    pub key_id: String,
+    #[schema(max_length = 64, example = "5hEEqkgJUyuxgSKGArHA4mWSnX", value_type = String)]
+    pub key_id: common_utils::id_type::ApiKeyId,
 
     /// The identifier for the Merchant Account.
     #[schema(max_length = 64, example = "y3oqhf46pyzuxjbcn2giaqnb44", value_type = String)]
@@ -72,8 +72,8 @@ pub struct CreateApiKeyResponse {
 #[derive(Debug, Serialize, ToSchema)]
 pub struct RetrieveApiKeyResponse {
     /// The identifier for the API Key.
-    #[schema(max_length = 64, example = "5hEEqkgJUyuxgSKGArHA4mWSnX")]
-    pub key_id: String,
+    #[schema(max_length = 64, example = "5hEEqkgJUyuxgSKGArHA4mWSnX", value_type = String)]
+    pub key_id: common_utils::id_type::ApiKeyId,
 
     /// The identifier for the Merchant Account.
     #[schema(max_length = 64, example = "y3oqhf46pyzuxjbcn2giaqnb44", value_type = String)]
@@ -131,7 +131,8 @@ pub struct UpdateApiKeyRequest {
     pub expiration: Option<ApiKeyExpiration>,
 
     #[serde(skip_deserializing)]
-    pub key_id: String,
+    #[schema(value_type = String)]
+    pub key_id: common_utils::id_type::ApiKeyId,
 
     #[serde(skip_deserializing)]
     #[schema(value_type = String)]
@@ -146,8 +147,8 @@ pub struct RevokeApiKeyResponse {
     pub merchant_id: common_utils::id_type::MerchantId,
 
     /// The identifier for the API Key.
-    #[schema(max_length = 64, example = "5hEEqkgJUyuxgSKGArHA4mWSnX")]
-    pub key_id: String,
+    #[schema(max_length = 64, example = "5hEEqkgJUyuxgSKGArHA4mWSnX", value_type = String)]
+    pub key_id: common_utils::id_type::ApiKeyId,
     /// Indicates whether the API key was revoked or not.
     #[schema(example = "true")]
     pub revoked: bool,
diff --git a/crates/common_utils/src/events.rs b/crates/common_utils/src/events.rs
index 1b03f8f19f..e30aa70897 100644
--- a/crates/common_utils/src/events.rs
+++ b/crates/common_utils/src/events.rs
@@ -45,6 +45,9 @@ pub enum ApiEventsType {
     BusinessProfile {
         profile_id: id_type::ProfileId,
     },
+    ApiKey {
+        key_id: id_type::ApiKeyId,
+    },
     User {
         user_id: String,
     },
@@ -130,10 +133,6 @@ impl_api_event_type!(
     (
         String,
         id_type::MerchantId,
-        (id_type::MerchantId, String),
-        (id_type::MerchantId, &String),
-        (&id_type::MerchantId, &String),
-        (&String, &String),
         (Option<i64>, Option<i64>, String),
         (Option<i64>, Option<i64>, id_type::MerchantId),
         bool
diff --git a/crates/common_utils/src/id_type.rs b/crates/common_utils/src/id_type.rs
index 78e3841690..c256559fc1 100644
--- a/crates/common_utils/src/id_type.rs
+++ b/crates/common_utils/src/id_type.rs
@@ -3,6 +3,7 @@
 
 use std::{borrow::Cow, fmt::Debug};
 
+mod api_key;
 mod customer;
 mod merchant;
 mod merchant_connector_account;
@@ -14,6 +15,7 @@ mod routing;
 #[cfg(feature = "v2")]
 mod global_id;
 
+pub use api_key::ApiKeyId;
 pub use customer::CustomerId;
 use diesel::{
     backend::Backend,
diff --git a/crates/common_utils/src/id_type/api_key.rs b/crates/common_utils/src/id_type/api_key.rs
new file mode 100644
index 0000000000..f252846e6a
--- /dev/null
+++ b/crates/common_utils/src/id_type/api_key.rs
@@ -0,0 +1,46 @@
+crate::id_type!(
+    ApiKeyId,
+    "A type for key_id that can be used for API key IDs"
+);
+crate::impl_id_type_methods!(ApiKeyId, "key_id");
+
+// This is to display the `ApiKeyId` as ApiKeyId(abcd)
+crate::impl_debug_id_type!(ApiKeyId);
+crate::impl_try_from_cow_str_id_type!(ApiKeyId, "key_id");
+
+crate::impl_serializable_secret_id_type!(ApiKeyId);
+crate::impl_queryable_id_type!(ApiKeyId);
+crate::impl_to_sql_from_sql_id_type!(ApiKeyId);
+
+impl ApiKeyId {
+    /// Generate Api Key Id from prefix
+    pub fn generate_key_id(prefix: &'static str) -> Self {
+        Self(crate::generate_ref_id_with_default_length(prefix))
+    }
+}
+
+impl crate::events::ApiEventMetric for ApiKeyId {
+    fn get_api_event_type(&self) -> Option<crate::events::ApiEventsType> {
+        Some(crate::events::ApiEventsType::ApiKey {
+            key_id: self.clone(),
+        })
+    }
+}
+
+impl crate::events::ApiEventMetric for (super::MerchantId, ApiKeyId) {
+    fn get_api_event_type(&self) -> Option<crate::events::ApiEventsType> {
+        Some(crate::events::ApiEventsType::ApiKey {
+            key_id: self.1.clone(),
+        })
+    }
+}
+
+impl crate::events::ApiEventMetric for (&super::MerchantId, &ApiKeyId) {
+    fn get_api_event_type(&self) -> Option<crate::events::ApiEventsType> {
+        Some(crate::events::ApiEventsType::ApiKey {
+            key_id: self.1.clone(),
+        })
+    }
+}
+
+crate::impl_default_id_type!(ApiKeyId, "key");
diff --git a/crates/diesel_models/src/api_keys.rs b/crates/diesel_models/src/api_keys.rs
index 1781e65cde..7076bf597e 100644
--- a/crates/diesel_models/src/api_keys.rs
+++ b/crates/diesel_models/src/api_keys.rs
@@ -9,7 +9,7 @@ use crate::schema::api_keys;
 )]
 #[diesel(table_name = api_keys, primary_key(key_id), check_for_backend(diesel::pg::Pg))]
 pub struct ApiKey {
-    pub key_id: String,
+    pub key_id: common_utils::id_type::ApiKeyId,
     pub merchant_id: common_utils::id_type::MerchantId,
     pub name: String,
     pub description: Option<String>,
@@ -23,7 +23,7 @@ pub struct ApiKey {
 #[derive(Debug, Insertable)]
 #[diesel(table_name = api_keys)]
 pub struct ApiKeyNew {
-    pub key_id: String,
+    pub key_id: common_utils::id_type::ApiKeyId,
     pub merchant_id: common_utils::id_type::MerchantId,
     pub name: String,
     pub description: Option<String>,
@@ -141,7 +141,7 @@ mod diesel_impl {
 // Tracking data by process_tracker
 #[derive(Default, Debug, Deserialize, Serialize, Clone)]
 pub struct ApiKeyExpiryTrackingData {
-    pub key_id: String,
+    pub key_id: common_utils::id_type::ApiKeyId,
     pub merchant_id: common_utils::id_type::MerchantId,
     pub api_key_name: String,
     pub prefix: String,
diff --git a/crates/diesel_models/src/query/api_keys.rs b/crates/diesel_models/src/query/api_keys.rs
index 5dd1450102..479e226c1d 100644
--- a/crates/diesel_models/src/query/api_keys.rs
+++ b/crates/diesel_models/src/query/api_keys.rs
@@ -18,7 +18,7 @@ impl ApiKey {
     pub async fn update_by_merchant_id_key_id(
         conn: &PgPooledConn,
         merchant_id: common_utils::id_type::MerchantId,
-        key_id: String,
+        key_id: common_utils::id_type::ApiKeyId,
         api_key_update: ApiKeyUpdate,
     ) -> StorageResult<Self> {
         match generics::generic_update_with_unique_predicate_get_result::<
@@ -57,7 +57,7 @@ impl ApiKey {
     pub async fn revoke_by_merchant_id_key_id(
         conn: &PgPooledConn,
         merchant_id: &common_utils::id_type::MerchantId,
-        key_id: &str,
+        key_id: &common_utils::id_type::ApiKeyId,
     ) -> StorageResult<bool> {
         generics::generic_delete::<<Self as HasTable>::Table, _>(
             conn,
@@ -71,7 +71,7 @@ impl ApiKey {
     pub async fn find_optional_by_merchant_id_key_id(
         conn: &PgPooledConn,
         merchant_id: &common_utils::id_type::MerchantId,
-        key_id: &str,
+        key_id: &common_utils::id_type::ApiKeyId,
     ) -> StorageResult<Option<Self>> {
         generics::generic_find_one_optional::<<Self as HasTable>::Table, _, _>(
             conn,
diff --git a/crates/router/src/core/api_keys.rs b/crates/router/src/core/api_keys.rs
index 6e907dbd91..de4a8931c7 100644
--- a/crates/router/src/core/api_keys.rs
+++ b/crates/router/src/core/api_keys.rs
@@ -13,7 +13,6 @@ use crate::{
     routes::{metrics, SessionState},
     services::{authentication, ApplicationResponse},
     types::{api, storage, transformers::ForeignInto},
-    utils,
 };
 
 #[cfg(feature = "email")]
@@ -63,9 +62,9 @@ impl PlaintextApiKey {
         Self(format!("{env}_{key}").into())
     }
 
-    pub fn new_key_id() -> String {
+    pub fn new_key_id() -> common_utils::id_type::ApiKeyId {
         let env = router_env::env::prefix_for_env();
-        utils::generate_id(consts::ID_LENGTH, env)
+        common_utils::id_type::ApiKeyId::generate_key_id(env)
     }
 
     pub fn prefix(&self) -> String {
@@ -223,7 +222,7 @@ pub async fn add_api_key_expiry_task(
         expiry_reminder_days: expiry_reminder_days.clone(),
     };
 
-    let process_tracker_id = generate_task_id_for_api_key_expiry_workflow(api_key.key_id.as_str());
+    let process_tracker_id = generate_task_id_for_api_key_expiry_workflow(&api_key.key_id);
     let process_tracker_entry = storage::ProcessTrackerNew::new(
         process_tracker_id,
         API_KEY_EXPIRY_NAME,
@@ -241,7 +240,7 @@ pub async fn add_api_key_expiry_task(
         .change_context(errors::ApiErrorResponse::InternalServerError)
         .attach_printable_lazy(|| {
             format!(
-                "Failed while inserting API key expiry reminder to process_tracker: api_key_id: {}",
+                "Failed while inserting API key expiry reminder to process_tracker: {:?}",
                 api_key.key_id
             )
         })?;
@@ -258,11 +257,11 @@ pub async fn add_api_key_expiry_task(
 pub async fn retrieve_api_key(
     state: SessionState,
     merchant_id: common_utils::id_type::MerchantId,
-    key_id: &str,
+    key_id: common_utils::id_type::ApiKeyId,
 ) -> RouterResponse<api::RetrieveApiKeyResponse> {
     let store = state.store.as_ref();
     let api_key = store
-        .find_api_key_by_merchant_id_key_id_optional(&merchant_id, key_id)
+        .find_api_key_by_merchant_id_key_id_optional(&merchant_id, &key_id)
         .await
         .change_context(errors::ApiErrorResponse::InternalServerError) // If retrieve failed
         .attach_printable("Failed to retrieve API key")?
@@ -388,7 +387,7 @@ pub async fn update_api_key_expiry_task(
         }
     }
 
-    let task_id = generate_task_id_for_api_key_expiry_workflow(api_key.key_id.as_str());
+    let task_id = generate_task_id_for_api_key_expiry_workflow(&api_key.key_id);
 
     let task_ids = vec![task_id.clone()];
 
@@ -430,7 +429,7 @@ pub async fn update_api_key_expiry_task(
 pub async fn revoke_api_key(
     state: SessionState,
     merchant_id: &common_utils::id_type::MerchantId,
-    key_id: &str,
+    key_id: &common_utils::id_type::ApiKeyId,
 ) -> RouterResponse<api::RevokeApiKeyResponse> {
     let store = state.store.as_ref();
 
@@ -496,7 +495,7 @@ pub async fn revoke_api_key(
 #[instrument(skip_all)]
 pub async fn revoke_api_key_expiry_task(
     store: &dyn crate::db::StorageInterface,
-    key_id: &str,
+    key_id: &common_utils::id_type::ApiKeyId,
 ) -> Result<(), errors::ProcessTrackerError> {
     let task_id = generate_task_id_for_api_key_expiry_workflow(key_id);
     let task_ids = vec![task_id];
@@ -535,8 +534,13 @@ pub async fn list_api_keys(
 }
 
 #[cfg(feature = "email")]
-fn generate_task_id_for_api_key_expiry_workflow(key_id: &str) -> String {
-    format!("{API_KEY_EXPIRY_RUNNER}_{API_KEY_EXPIRY_NAME}_{key_id}")
+fn generate_task_id_for_api_key_expiry_workflow(
+    key_id: &common_utils::id_type::ApiKeyId,
+) -> String {
+    format!(
+        "{API_KEY_EXPIRY_RUNNER}_{API_KEY_EXPIRY_NAME}_{}",
+        key_id.get_string_repr()
+    )
 }
 
 impl From<&str> for PlaintextApiKey {
diff --git a/crates/router/src/db/api_keys.rs b/crates/router/src/db/api_keys.rs
index 62d261aa3c..0d3ec5dc8c 100644
--- a/crates/router/src/db/api_keys.rs
+++ b/crates/router/src/db/api_keys.rs
@@ -20,20 +20,20 @@ pub trait ApiKeyInterface {
     async fn update_api_key(
         &self,
         merchant_id: common_utils::id_type::MerchantId,
-        key_id: String,
+        key_id: common_utils::id_type::ApiKeyId,
         api_key: storage::ApiKeyUpdate,
     ) -> CustomResult<storage::ApiKey, errors::StorageError>;
 
     async fn revoke_api_key(
         &self,
         merchant_id: &common_utils::id_type::MerchantId,
-        key_id: &str,
+        key_id: &common_utils::id_type::ApiKeyId,
     ) -> CustomResult<bool, errors::StorageError>;
 
     async fn find_api_key_by_merchant_id_key_id_optional(
         &self,
         merchant_id: &common_utils::id_type::MerchantId,
-        key_id: &str,
+        key_id: &common_utils::id_type::ApiKeyId,
     ) -> CustomResult<Option<storage::ApiKey>, errors::StorageError>;
 
     async fn find_api_key_by_hash_optional(
@@ -67,7 +67,7 @@ impl ApiKeyInterface for Store {
     async fn update_api_key(
         &self,
         merchant_id: common_utils::id_type::MerchantId,
-        key_id: String,
+        key_id: common_utils::id_type::ApiKeyId,
         api_key: storage::ApiKeyUpdate,
     ) -> CustomResult<storage::ApiKey, errors::StorageError> {
         let conn = connection::pg_connection_write(self).await?;
@@ -99,7 +99,8 @@ impl ApiKeyInterface for Store {
             .await
             .map_err(|error| report!(errors::StorageError::from(error)))?
             .ok_or(report!(errors::StorageError::ValueNotFound(format!(
-                "ApiKey of {_key_id} not found"
+                "ApiKey of {} not found",
+                _key_id.get_string_repr()
             ))))?;
 
             cache::publish_and_redact(
@@ -115,7 +116,7 @@ impl ApiKeyInterface for Store {
     async fn revoke_api_key(
         &self,
         merchant_id: &common_utils::id_type::MerchantId,
-        key_id: &str,
+        key_id: &common_utils::id_type::ApiKeyId,
     ) -> CustomResult<bool, errors::StorageError> {
         let conn = connection::pg_connection_write(self).await?;
         let delete_call = || async {
@@ -141,7 +142,8 @@ impl ApiKeyInterface for Store {
                     .await
                     .map_err(|error| report!(errors::StorageError::from(error)))?
                     .ok_or(report!(errors::StorageError::ValueNotFound(format!(
-                        "ApiKey of {key_id} not found"
+                        "ApiKey of {} not found",
+                        key_id.get_string_repr()
                     ))))?;
 
             cache::publish_and_redact(
@@ -157,7 +159,7 @@ impl ApiKeyInterface for Store {
     async fn find_api_key_by_merchant_id_key_id_optional(
         &self,
         merchant_id: &common_utils::id_type::MerchantId,
-        key_id: &str,
+        key_id: &common_utils::id_type::ApiKeyId,
     ) -> CustomResult<Option<storage::ApiKey>, errors::StorageError> {
         let conn = connection::pg_connection_read(self).await?;
         storage::ApiKey::find_optional_by_merchant_id_key_id(&conn, merchant_id, key_id)
@@ -240,7 +242,7 @@ impl ApiKeyInterface for MockDb {
     async fn update_api_key(
         &self,
         merchant_id: common_utils::id_type::MerchantId,
-        key_id: String,
+        key_id: common_utils::id_type::ApiKeyId,
         api_key: storage::ApiKeyUpdate,
     ) -> CustomResult<storage::ApiKey, errors::StorageError> {
         let mut locked_api_keys = self.api_keys.lock().await;
@@ -282,13 +284,13 @@ impl ApiKeyInterface for MockDb {
     async fn revoke_api_key(
         &self,
         merchant_id: &common_utils::id_type::MerchantId,
-        key_id: &str,
+        key_id: &common_utils::id_type::ApiKeyId,
     ) -> CustomResult<bool, errors::StorageError> {
         let mut locked_api_keys = self.api_keys.lock().await;
         // find the key to remove, if it exists
         if let Some(pos) = locked_api_keys
             .iter()
-            .position(|k| k.merchant_id == *merchant_id && k.key_id == key_id)
+            .position(|k| k.merchant_id == *merchant_id && k.key_id == *key_id)
         {
             // use `remove` instead of `swap_remove` so we have a consistent order, which might
             // matter to someone using limit/offset in `list_api_keys_by_merchant_id`
@@ -302,14 +304,14 @@ impl ApiKeyInterface for MockDb {
     async fn find_api_key_by_merchant_id_key_id_optional(
         &self,
         merchant_id: &common_utils::id_type::MerchantId,
-        key_id: &str,
+        key_id: &common_utils::id_type::ApiKeyId,
     ) -> CustomResult<Option<storage::ApiKey>, errors::StorageError> {
         Ok(self
             .api_keys
             .lock()
             .await
             .iter()
-            .find(|k| k.merchant_id == *merchant_id && k.key_id == key_id)
+            .find(|k| k.merchant_id == *merchant_id && k.key_id == *key_id)
             .cloned())
     }
 
@@ -397,9 +399,16 @@ mod tests {
         let merchant_id =
             common_utils::id_type::MerchantId::try_from(Cow::from("merchant1")).unwrap();
 
+        let key_id1 = common_utils::id_type::ApiKeyId::try_from(Cow::from("key_id1")).unwrap();
+
+        let key_id2 = common_utils::id_type::ApiKeyId::try_from(Cow::from("key_id2")).unwrap();
+
+        let non_existent_key_id =
+            common_utils::id_type::ApiKeyId::try_from(Cow::from("does_not_exist")).unwrap();
+
         let key1 = mockdb
             .insert_api_key(storage::ApiKeyNew {
-                key_id: "key_id1".into(),
+                key_id: key_id1.clone(),
                 merchant_id: merchant_id.clone(),
                 name: "Key 1".into(),
                 description: None,
@@ -414,7 +423,7 @@ mod tests {
 
         mockdb
             .insert_api_key(storage::ApiKeyNew {
-                key_id: "key_id2".into(),
+                key_id: key_id2.clone(),
                 merchant_id: merchant_id.clone(),
                 name: "Key 2".into(),
                 description: None,
@@ -428,13 +437,13 @@ mod tests {
             .unwrap();
 
         let found_key1 = mockdb
-            .find_api_key_by_merchant_id_key_id_optional(&merchant_id, "key_id1")
+            .find_api_key_by_merchant_id_key_id_optional(&merchant_id, &key_id1)
             .await
             .unwrap()
             .unwrap();
         assert_eq!(found_key1.key_id, key1.key_id);
         assert!(mockdb
-            .find_api_key_by_merchant_id_key_id_optional(&merchant_id, "does_not_exist")
+            .find_api_key_by_merchant_id_key_id_optional(&merchant_id, &non_existent_key_id)
             .await
             .unwrap()
             .is_none());
@@ -442,7 +451,7 @@ mod tests {
         mockdb
             .update_api_key(
                 merchant_id.clone(),
-                "key_id1".into(),
+                key_id1.clone(),
                 storage::ApiKeyUpdate::LastUsedUpdate {
                     last_used: datetime!(2023-02-04 1:11),
                 },
@@ -450,7 +459,7 @@ mod tests {
             .await
             .unwrap();
         let updated_key1 = mockdb
-            .find_api_key_by_merchant_id_key_id_optional(&merchant_id, "key_id1")
+            .find_api_key_by_merchant_id_key_id_optional(&merchant_id, &key_id1)
             .await
             .unwrap()
             .unwrap();
@@ -464,10 +473,7 @@ mod tests {
                 .len(),
             2
         );
-        mockdb
-            .revoke_api_key(&merchant_id, "key_id1")
-            .await
-            .unwrap();
+        mockdb.revoke_api_key(&merchant_id, &key_id1).await.unwrap();
         assert_eq!(
             mockdb
                 .list_api_keys_by_merchant_id(&merchant_id, None, None)
@@ -495,8 +501,10 @@ mod tests {
             .await
             .unwrap();
 
+        let test_key = common_utils::id_type::ApiKeyId::try_from(Cow::from("test_ey")).unwrap();
+
         let api = storage::ApiKeyNew {
-            key_id: "test_key".into(),
+            key_id: test_key.clone(),
             merchant_id: merchant_id.clone(),
             name: "My test key".into(),
             description: None,
diff --git a/crates/router/src/db/kafka_store.rs b/crates/router/src/db/kafka_store.rs
index e92fe6b41b..3ef9a2d037 100644
--- a/crates/router/src/db/kafka_store.rs
+++ b/crates/router/src/db/kafka_store.rs
@@ -226,7 +226,7 @@ impl ApiKeyInterface for KafkaStore {
     async fn update_api_key(
         &self,
         merchant_id: id_type::MerchantId,
-        key_id: String,
+        key_id: id_type::ApiKeyId,
         api_key: storage::ApiKeyUpdate,
     ) -> CustomResult<storage::ApiKey, errors::StorageError> {
         self.diesel_store
@@ -237,7 +237,7 @@ impl ApiKeyInterface for KafkaStore {
     async fn revoke_api_key(
         &self,
         merchant_id: &id_type::MerchantId,
-        key_id: &str,
+        key_id: &id_type::ApiKeyId,
     ) -> CustomResult<bool, errors::StorageError> {
         self.diesel_store.revoke_api_key(merchant_id, key_id).await
     }
@@ -245,7 +245,7 @@ impl ApiKeyInterface for KafkaStore {
     async fn find_api_key_by_merchant_id_key_id_optional(
         &self,
         merchant_id: &id_type::MerchantId,
-        key_id: &str,
+        key_id: &id_type::ApiKeyId,
     ) -> CustomResult<Option<storage::ApiKey>, errors::StorageError> {
         self.diesel_store
             .find_api_key_by_merchant_id_key_id_optional(merchant_id, key_id)
diff --git a/crates/router/src/routes/api_keys.rs b/crates/router/src/routes/api_keys.rs
index 047e0d9b88..bbecaae9e8 100644
--- a/crates/router/src/routes/api_keys.rs
+++ b/crates/router/src/routes/api_keys.rs
@@ -79,7 +79,7 @@ pub async fn api_key_create(
 pub async fn api_key_retrieve(
     state: web::Data<AppState>,
     req: HttpRequest,
-    path: web::Path<String>,
+    path: web::Path<common_utils::id_type::ApiKeyId>,
 ) -> impl Responder {
     let flow = Flow::ApiKeyRetrieve;
     let key_id = path.into_inner();
@@ -93,7 +93,7 @@ pub async fn api_key_retrieve(
             api_keys::retrieve_api_key(
                 state,
                 auth_data.merchant_account.get_id().to_owned(),
-                key_id,
+                key_id.to_owned(),
             )
         },
         auth::auth_type(
@@ -114,7 +114,10 @@ pub async fn api_key_retrieve(
 pub async fn api_key_retrieve(
     state: web::Data<AppState>,
     req: HttpRequest,
-    path: web::Path<(common_utils::id_type::MerchantId, String)>,
+    path: web::Path<(
+        common_utils::id_type::MerchantId,
+        common_utils::id_type::ApiKeyId,
+    )>,
 ) -> impl Responder {
     let flow = Flow::ApiKeyRetrieve;
     let (merchant_id, key_id) = path.into_inner();
@@ -123,7 +126,7 @@ pub async fn api_key_retrieve(
         flow,
         state,
         &req,
-        (merchant_id.clone(), &key_id),
+        (merchant_id.clone(), key_id.clone()),
         |state, _, (merchant_id, key_id), _| api_keys::retrieve_api_key(state, merchant_id, key_id),
         auth::auth_type(
             &auth::AdminApiAuth,
@@ -144,7 +147,10 @@ pub async fn api_key_retrieve(
 pub async fn api_key_update(
     state: web::Data<AppState>,
     req: HttpRequest,
-    path: web::Path<(common_utils::id_type::MerchantId, String)>,
+    path: web::Path<(
+        common_utils::id_type::MerchantId,
+        common_utils::id_type::ApiKeyId,
+    )>,
     json_payload: web::Json<api_types::UpdateApiKeyRequest>,
 ) -> impl Responder {
     let flow = Flow::ApiKeyUpdate;
@@ -177,7 +183,7 @@ pub async fn api_key_update(
 pub async fn api_key_update(
     state: web::Data<AppState>,
     req: HttpRequest,
-    key_id: web::Path<String>,
+    key_id: web::Path<common_utils::id_type::ApiKeyId>,
     json_payload: web::Json<api_types::UpdateApiKeyRequest>,
 ) -> impl Responder {
     let flow = Flow::ApiKeyUpdate;
@@ -212,7 +218,10 @@ pub async fn api_key_update(
 pub async fn api_key_revoke(
     state: web::Data<AppState>,
     req: HttpRequest,
-    path: web::Path<(common_utils::id_type::MerchantId, String)>,
+    path: web::Path<(
+        common_utils::id_type::MerchantId,
+        common_utils::id_type::ApiKeyId,
+    )>,
 ) -> impl Responder {
     let flow = Flow::ApiKeyRevoke;
     let (merchant_id, key_id) = path.into_inner();
@@ -242,7 +251,10 @@ pub async fn api_key_revoke(
 pub async fn api_key_revoke(
     state: web::Data<AppState>,
     req: HttpRequest,
-    path: web::Path<(common_utils::id_type::MerchantId, String)>,
+    path: web::Path<(
+        common_utils::id_type::MerchantId,
+        common_utils::id_type::ApiKeyId,
+    )>,
 ) -> impl Responder {
     let flow = Flow::ApiKeyRevoke;
     let (merchant_id, key_id) = path.into_inner();
diff --git a/crates/router/src/services/authentication.rs b/crates/router/src/services/authentication.rs
index a731b7e6db..92e2177633 100644
--- a/crates/router/src/services/authentication.rs
+++ b/crates/router/src/services/authentication.rs
@@ -89,7 +89,7 @@ pub struct AuthenticationDataWithUser {
 pub enum AuthenticationType {
     ApiKey {
         merchant_id: id_type::MerchantId,
-        key_id: String,
+        key_id: id_type::ApiKeyId,
     },
     AdminApiKey,
     AdminApiAuthWithMerchantId {
diff --git a/crates/router/src/services/authentication/decision.rs b/crates/router/src/services/authentication/decision.rs
index d665b0caaf..c31a4696bc 100644
--- a/crates/router/src/services/authentication/decision.rs
+++ b/crates/router/src/services/authentication/decision.rs
@@ -67,7 +67,7 @@ pub enum Identifiers {
     /// [`ApiKey`] is an authentication method that uses an API key. This is used with [`ApiKey`]
     ApiKey {
         merchant_id: common_utils::id_type::MerchantId,
-        key_id: String,
+        key_id: common_utils::id_type::ApiKeyId,
     },
     /// [`PublishableKey`] is an authentication method that uses a publishable key. This is used with [`PublishableKey`]
     PublishableKey { merchant_id: String },
@@ -80,7 +80,7 @@ pub async fn add_api_key(
     state: &SessionState,
     api_key: Secret<String>,
     merchant_id: common_utils::id_type::MerchantId,
-    key_id: String,
+    key_id: common_utils::id_type::ApiKeyId,
     expiry: Option<u64>,
 ) -> CustomResult<(), ApiClientError> {
     let decision_config = if let Some(config) = &state.conf.decision {
diff --git a/crates/router/src/services/authentication/detached.rs b/crates/router/src/services/authentication/detached.rs
index af373d3e55..9d77d2b1f0 100644
--- a/crates/router/src/services/authentication/detached.rs
+++ b/crates/router/src/services/authentication/detached.rs
@@ -1,7 +1,10 @@
 use std::{borrow::Cow, string::ToString};
 
 use actix_web::http::header::HeaderMap;
-use common_utils::{crypto::VerifySignature, id_type::MerchantId};
+use common_utils::{
+    crypto::VerifySignature,
+    id_type::{ApiKeyId, MerchantId},
+};
 use error_stack::ResultExt;
 use hyperswitch_domain_models::errors::api_error_response::ApiErrorResponse;
 
@@ -16,7 +19,7 @@ const HEADER_CHECKSUM: &str = "x-checksum";
 pub struct ExtractedPayload {
     pub payload_type: PayloadType,
     pub merchant_id: Option<MerchantId>,
-    pub key_id: Option<String>,
+    pub key_id: Option<ApiKeyId>,
 }
 
 #[derive(strum::EnumString, strum::Display, PartialEq, Debug)]
@@ -61,13 +64,19 @@ impl ExtractedPayload {
                 message: format!("`{}` header not present", HEADER_AUTH_TYPE),
             })?;
 
+        let key_id = headers
+            .get(HEADER_KEY_ID)
+            .and_then(|value| value.to_str().ok())
+            .map(|key_id| ApiKeyId::try_from(Cow::from(key_id.to_string())))
+            .transpose()
+            .change_context(ApiErrorResponse::InvalidRequestData {
+                message: format!("`{}` header is invalid or not present", HEADER_KEY_ID),
+            })?;
+
         Ok(Self {
             payload_type: auth_type,
             merchant_id: Some(merchant_id),
-            key_id: headers
-                .get(HEADER_KEY_ID)
-                .and_then(|v| v.to_str().ok())
-                .map(|v| v.to_string()),
+            key_id,
         })
     }
 
@@ -95,7 +104,7 @@ impl ExtractedPayload {
             &self
                 .merchant_id
                 .as_ref()
-                .map(|inner| append_option(inner.get_string_repr(), &self.key_id)),
+                .map(|inner| append_api_key(inner.get_string_repr(), &self.key_id)),
         )
     }
 }
@@ -107,3 +116,11 @@ fn append_option(prefix: &str, data: &Option<String>) -> String {
         None => prefix.to_string(),
     }
 }
+
+#[inline]
+fn append_api_key(prefix: &str, data: &Option<ApiKeyId>) -> String {
+    match data {
+        Some(inner) => format!("{}:{}", prefix, inner.get_string_repr()),
+        None => prefix.to_string(),
+    }
+}