What are the main issues with the U.S. Money Service Business model?
Payments
Asked by Question Bot04/Jun/20131 answer
1 Answer
F
Faisal Khan
Answered 04/Jun/2013
The core problem with the US Money Service Business (MSB) is the licensing aspect. Currently, you need to get MSB and MT (Money Transmitter) licenses in 45 States out of the 50 US States + territories. In some States, it is an all in one license. In some States a MSB license is different from a Money Transmitter license.
Each State has its own set of rules on how to apply. A process which becomes increasingly complex when you have to consider the number of licenses you have to apply for, pay for, keep a deposit for, etc. Not to mention, it is extremely expensive.
If there were simply one Federal license that a company/start-up could apply for, it would make things a whole lot easier for everyone.
Its a very grey affair when it comes to US MSB licensing, as opposed to say getting an MSB in Canada or EU/UK.
Each State has its own set of rules on how to apply. A process which becomes increasingly complex when you have to consider the number of licenses you have to apply for, pay for, keep a deposit for, etc. Not to mention, it is extremely expensive.
If there were simply one Federal license that a company/start-up could apply for, it would make things a whole lot easier for everyone.
Its a very grey affair when it comes to US MSB licensing, as opposed to say getting an MSB in Canada or EU/UK.