Which U.S. bank is best for a startup offering money transmission services like PayPal?
Payments
Asked by Question Bot06/Oct/20141 answer
1 Answer
F
Faisal Khan
Answered 06/Oct/2014
Not clear if you already have a money transmitter license?
In the event you do, finding a bank to work with you is going to be tough, once you declare you are a money transmitter. However, if you do find one, then all you need to do is to find an ACH processor for yourself to push payments out. If you're looking at pulling payments, then this is going to be tough, especially since you're an MSB.
If you don't have an MSB license and are looking at a bank to provide you with one (for MTL coverage), then your only option is to work with nationwide chartered banks, as they are exempt from money transmitter licenses.
In either case, you will be hard pressed to find a banking relationship. For ACH, there would be transaction limits placed and they would slowly ramp up your transactions volume over the period. For ACH Pull, high-volume processors have a tough time.
In the event you do, finding a bank to work with you is going to be tough, once you declare you are a money transmitter. However, if you do find one, then all you need to do is to find an ACH processor for yourself to push payments out. If you're looking at pulling payments, then this is going to be tough, especially since you're an MSB.
If you don't have an MSB license and are looking at a bank to provide you with one (for MTL coverage), then your only option is to work with nationwide chartered banks, as they are exempt from money transmitter licenses.
In either case, you will be hard pressed to find a banking relationship. For ACH, there would be transaction limits placed and they would slowly ramp up your transactions volume over the period. For ACH Pull, high-volume processors have a tough time.