A principal agent, in the money transfer business, is a company that holds a direct contract with a money transfer operator to offer its service in a country or region and that may, in turn, appoint and supervise smaller outlets known as sub-agents. It is also called a master agent or super-agent.
The principal agent settles with the operator for all transactions in its network, supplies its sub-agents with systems, training and cash arrangements, and shares the commission with them. Its outlets act as a sending agent, a receiving agent or both. Regulation differs by country: some regulators hold the operator responsible for every outlet, as with an authorized delegate in the United States, while others license the principal agent itself. The phrase is unrelated to the principal-agent problem of economics, and differs from a principal MSB, which is the licensed business on whose behalf agents act.