A sending agent is a business in the originating country that takes in money from customers for transfer abroad, acting on behalf of a money transfer operator. Typical sending agents are convenience stores, supermarkets, travel agencies, check cashers and ethnic grocery shops located where migrant communities live. The agent is the counterpart of the receiving agent that pays the beneficiary.
At the counter the agent identifies the customer, records the beneficiary's details, collects the principal and fee, enters the transaction in the operator's system and hands over a receipt with a reference number. It then remits the cash collected to the operator, usually by daily bank deposit. The customer's contract is with the operator, which holds the license and is responsible for the agent's conduct. In the United States such an agent is commonly an authorized delegate of a licensed money transmitter. Agents earn a commission on each transfer and must follow the operator's training and anti-money laundering procedures.