When starting a money transfer business, it is important for you to analyze the market and determine factors like the potential affiliates, competitors and the primary customer base. But there are plenty of other factors that need to be kept in mind to make sure you are not in way over your head. However, this does not necessarily have to be a complicated task even though it can prove difficult.
Here is everything you need to need to know about starting your money transfer business:
1. Fulfill your state’s requirements and complete all required documents
The only way you can start a money transfer business is by meeting your state’s minimum requirements. The requirements often include and are not limited to, a surety bond or a minimum net worth.
2. Get a money transmitter license
It is important for you to pay all application fees in order to acquire a money transferring license. The requirements for both the application fees and license depend on the state you wish to set up a business in. For more information, there is no harm in getting licensing requirements for each specific state from the National Money Transmitters Association.
3. Submit your money transmitter license application
Once you have obtained a registration of money services business application form, fill it and submit it to the Financial Crimes Enforcement Network right away. The agency is a part of the Department of Treasury, and you have to submit the form within 180 days after establishing your business.
4. Set up a merchant bank account
After choosing the bank you wish to work with, set up a merchant account. This will give you and your business the ability to accept debit and credit card payments without hassle. But that is not all, as deposit payments can also be retrieved and made into your customers’ accounts.
5. Start business operations
Having completed the steps described above, you can finally start your business operations. You can accept any and all money transfer requests from a store or offer your services online instead, using your business’s website to keep costs low.
6. Invest in a good money transfer application
Apart from the aforementioned steps, there are additional factors you need to keep in mind to simplify the process. This includes investing in an excellent money transfer application that is not only simple to use but effective as well. Moreover, the application should not be restrictive so you can update and upgrade it based on feedback and results over time. But all this needs to be done keeping your business requirements and objectives in mind, without which the business will fail to be successful in the long run.
So, now you have everything you need to get started with your money transfer business. As mentioned earlier, it can be a bit complicated, but you can overcome any and all obstacles as long as you keep things simple. Enough emphasis cannot be placed on the fact you need to do some homework and invest in good money transfer software. Once that is taken care of, there is no reason why your business will not flourish and grow as you want it to.