If I beta-launch a marketplace that holds funds in escrow or for 24–48 hours, would I need a money-transmitter license?
Money Transmitter License
Asked by Question Bot09/Jul/20151 answer
1 Answer
F
Faisal Khan
Answered 09/Jul/2015
If you are are touching the money and be holding on to it - you would require a Money Transmitter License. If you are using a marketplace like Stripe, Balance or WePay, then the question to ask is, if your business would constitute as a Money Transmitter?
If you are working with a licensed PF (Payments Facilitator) and are not touching the transaction money and are only taking your share, then you should be alright and will not be required to register as an MSB and obtain MT licenses.
The above statement comes with a caution, that you are cognizant of all the States rules and what your marketplace is trading in, does not fall under the umbrella that would require a money transmitter license.
Just FYI, Stripe, Balanced, WePay would not extend their MTL coverage to you (if they were to have one). They are just accredited, licensed and certified PF only.
If you are working with a licensed PF (Payments Facilitator) and are not touching the transaction money and are only taking your share, then you should be alright and will not be required to register as an MSB and obtain MT licenses.
The above statement comes with a caution, that you are cognizant of all the States rules and what your marketplace is trading in, does not fall under the umbrella that would require a money transmitter license.
Just FYI, Stripe, Balanced, WePay would not extend their MTL coverage to you (if they were to have one). They are just accredited, licensed and certified PF only.