What is required to build a PayPal-like payment service that enables online payments and money transfers through the Internet or branded credit/debit cards?
Payments
Asked by Question Bot06/Mar/20131 answer
1 Answer
F
Faisal Khan
Answered 06/Mar/2013
Answer to your question in a very condensed manner...
Depending on which country you want to operate such a service in, the starting point would be getting licensed.
For example if such a service (PayPal (product)) alternative were to be introduced in the United States, you would need to get an MSB (Money Service Business) license in 44 States that require it.
In addition to this you would need to register with FinCEN and providing reporting to FinCEN as per their guidelines [See References section below].
Barring the software architecture and SI (Systems Integration) issues (which will be plenty), you essentially need to liase with Visa (payments) and MasterCard Products and Services (getting certified is a process that can vary from 6 months to 15 months, depending on your outlay).
You would need to work with a bank for Nostro fund arrangements (unless you are specifically licensed for banking) you cannot hold on to funds.
Other than the Banking portion, you would need to negotiate and work with a good ACH processor.
These are the main components (again, am not taking into considering your whole app/software architecture on which your product is based), or any support services.
The entire solution would hinge on how your product is designed and how these above-mentioned components would be interconnected in moving money (payments).
References:
Depending on which country you want to operate such a service in, the starting point would be getting licensed.
For example if such a service (PayPal (product)) alternative were to be introduced in the United States, you would need to get an MSB (Money Service Business) license in 44 States that require it.
In addition to this you would need to register with FinCEN and providing reporting to FinCEN as per their guidelines [See References section below].
Barring the software architecture and SI (Systems Integration) issues (which will be plenty), you essentially need to liase with Visa (payments) and MasterCard Products and Services (getting certified is a process that can vary from 6 months to 15 months, depending on your outlay).
You would need to work with a bank for Nostro fund arrangements (unless you are specifically licensed for banking) you cannot hold on to funds.
Other than the Banking portion, you would need to negotiate and work with a good ACH processor.
These are the main components (again, am not taking into considering your whole app/software architecture on which your product is based), or any support services.
The entire solution would hinge on how your product is designed and how these above-mentioned components would be interconnected in moving money (payments).
References:
- FinCEN Website: http://www.fincen.gov/
- Definition of Money Service Business as given by FinCEN: http://www.fincen.gov/financial_...
- List of States that require MSB Licenses: http://moneytransmitterlicense.b...
- E-Filing required as part of BSA by FinCEN: http://bsaefiling.fincen.treas.g...