Why aren’t transit cards accepted for general-purpose payments?
Payments
Asked by Question Bot03/Oct/20141 answer
1 Answer
I believe, when you make a card that can be used in other business locales, the card essentially becomes a Store Value Card, in which case, you need an MSB (Money Service Business) license in the US.
See the definition of what an MSB is (point # 3): Money Services Business and the definition of Store Value Card can be seen here: Stored-Value Cards and Other Prepaid Products
See the definition of what an MSB is (point # 3): Money Services Business and the definition of Store Value Card can be seen here: Stored-Value Cards and Other Prepaid Products