Online and Retail MSB Payment Processing
MSB payment processing refers to a specialized credit card processing solution designed for money service businesses. These businesses offer various services including money transfer, currency exchange, and check cashing. MSB payment processing solutions comply with the regulatory requirements laid down for processing card transactions of these money service businesses.
Money service business payment processing is generally offered by merchant processors that specialize in working with high volume and high risk industries. These specialized credit card processors understand how to keep these high risk accounts in good standing by implementing various risk reduction measures.
Types of money services business payment processing solutions
Online MSB payment processing solutions are designed specifically for those money service businesses that conduct their activities either through a website or mobile application. With an online MSB merchant processing solution, customers can easily log on to the merchant’s website and initiate money transfers using their credit or debit cards. Customers can conveniently load funds from their preferred payment methods without any hassle.
A Retail POS money service business solution refers to a credit card terminal used by MSB companies to accept payments from customers for the purpose of money transfer. In this setup, customers tap or swipe their credit or debit cards on these MSB POS terminals to initiate transfers to their loved ones. This type of solution is widely used at retail locations of MSB companies in US, Canada, UK, and Eu nations.
KYC Documents for MSB Payment Processing Solution
When applying for a money services business payment processing account, merchants are required to submit various documents to the processor for complete evaluation. Some of these documents are common to other business types; however, a few are specific to money services businesses. Let’s look at these documents in detail.
The business documents can include the Articles of Incorporation, business license, tax identification number, employer identification number, VAT, or operating agreement. The purpose of these documents is to confirm that the merchant has a legally valid business.
Ownership documents: The merchant has to provide the copy of national ID of all directors. These may include driver’s license, passport, or any government-issued photo ID. For proof of directors residence and business address, recent utility bills are mandatory.
Money services business is a financially demanding activity, and that is why it is important for businesses venturing into this sector to have a sound financial standing. This should be reflected in the personal bank statements of directors as well as the business bank statements of the applicant company. If your bank statements show a substantial amount of financial reserve, then the possibility of getting an account increases.
For any business applying for an MSB payment processing account, we will require 3-6 months of business bank statements as well as recent processing statements, which clearly display the percentage of refunds and chargebacks. Please keep in mind that startups with good financial standing can also apply.
The most important set of documents for this type of industry is the compliance documents and the industry-specific license. Some of the compliance documents that you will need include an AML policy, compliance program documentation, customer due diligence policy, suspicious activity reporting procedure, and money services business license. Some additional documents will also be required; however, we will let you know those when you make an application on our website. Sending all the documents at the same time helps reduce the overall time required for the approval of the merchant account.
Application Process for money services business payment processing solutions
The application process for MSB payment processing solution is straightforward and highly efficient. We begin with an initial consultation with the merchant, asking basic questions to understand their expectations. This helps us match their expectations with the available banking and payment processing solutions. We guide merchants through the process and provide support even after approval. Contact us today for a no-obligation quote for an MSB payment processing account.
FAQ MSB Merchant Processing
What is the MCC code for MSB companies?
There are multiple merchant classification codes that may apply to MSBs and related businesses. Some of these are MCC 4829 for Money Transfer businesses, MCC 6010 for Financial Institutions – Manual Cash Disbursements, MCC 6012 for Financial Institutions – Merchandise, Services, and Debt Repayment, and MCC 6051 for Non-Financial Institutions – Foreign Currency, Money Orders (not wire transfer), and Travelers Cheques.
