7 Steps on How To Start a Money Transfer Business

7 Steps to Starting a Company in the US with Money Transmitter License Coverage

The Process

  1. Learn The Language
  2. Fill Out the RAAS (Remittance-as-a-Service) Form
  3. Setup A Call
  4. Term Sheet Consideration
  5. Quote
  6. Referral Agreement
  7. Introduction to Service Provider

So you have decided you would like to start a cross border payments company, whether this is a wallet, a money transfer company like a remittance business, a crypto exchange or crypto related business or a B2B payments company, whatever the path you choose, here are the 7 needed steps to make your idea go live.

1. Speak the Language:

There are various nuances and terminologies used in the money transfer / cross-border payments / across-the-state lines space. You are expected to know of it.

It is the equivalent of going to a restaurant and asking what are fries. Okay, what do they taste like? Okay, can I buy one fry? What is Pepsi? or what is a burger? What do you mean with cheese?

I’m sure you get the point. Questions like these will frustrate everyone.

Spend time learning the terminologies, definitions and a bit of how it works. I’m on a quest to put out 500-750 videos over the next 1-2 years to explain all these things, but till then, Youtube and Google are your friends. I will also include a link to my list of explainer videos.

How To Setup A Money Transfer Business Playlist (list of explainer videos)

https://www.youtube.com/watch?v=qOF6ivYwCUo&list=PLOPdtUVX8YkdW2EgqRsgAVIQTiLqBlxGK

The How To Start A Money Transfer Business Series:

https://faisalkhan.com/video/how-to-start-a-money-transfer-business-video-series/

2. Fill out the Regulatory Coverage Form (or affectionately called the RAAS Form):

This form basically is a one-pager on your business idea.

It captures…

– Who you are?
– What you are trying to achieve?
– Type of Business you indent to carry out
– What geographies do you intend to work with?
– How are (or not) are you?
– Some information on your transactions
– and, a bit of information on your compliance.

https://faisalkhan.com/licensing-regulatory-coverage-questionnaire/
(takes about 10-15 minutes to completely fill it out)

3. Setup a Call:

I’ll include a method on how to schedule a call (it is in the description below). On the call, we go over your application. It takes 30 minutes. Please setup this call ONLY after you have filled out the above-mentioned form.

We may have further questions and/or require clarifications from you.

To Setup a Call: https://faisalkhan.com/calendar

4. Term Sheet Consideration:

The next step is to understand what you are willing to pay for a solution and if there is indeed a provider out there for you This is called a term sheet consideration.

What is a term sheet and what specifically is a term sheet consideration, I will include the link in the description below.

Form: https://faisalkhan.com/term-sheet-consideration/

What is a Term Sheet Consideration?

https://www.youtube.com/watch?v=XCvorH1Wsaw

What is a Term Sheet?

https://www.youtube.com/watch?v=JYYKyFFQERA

5. Quote for Referral Services:

Once that is done, we will most likely go a project readiness evaluation and provide a detailed quote to you.

By the way, all our pricing can be viewed at:

How we charge and understanding other related ancillary points:
All this information can be found at (which we are sure you must have already read through):
https://faisalkhan.com/fees/

Typically for a Crypto-Based Exchange Coverage in the United States, you’re looking at: US$ 49,000 (one-time referral fees as charged by us). The solution provider that would provide you coverage and be your program manager would charge separately.

Typically, expect to pay: US$ 25,000 (one-time) and US$ 10,000 per month for full crypto-currency exchange coverage in the United States including access to banking:

Please also read about:

How Do We Charge: https://faisalkhan.com/how-do-we-charge-our-fees-for-commercial-services/
Refund policy. https://faisalkhan.com/refund-policy/
Application assessment fees: https://faisalkhan.com/application-assessment-fees/
General terms & conditions: https://faisalkhan.com/terms-conditions/
Your personal KYC information: https://faisalkhan.com/your-personal-kyc-information/
Prohibited list of products & services: https://faisalkhan.com/prohibited-list/
Prohibited Countries: https://faisalkhan.com/list-of-restricted-or-sanctioned-countries/

6. Referral Agreement & Deposit:

Once you have decided to forge ahead, sign the referral agreement and place the appropriate deposit payment as required by the referral agreement.

7. Introduction to Program Manager & License Holder:

The last step is the introduction. We will introduce you to the Program Manager and the License Holder.

Here you will sign an NDA with them and then 5 (or 6) things will run in parallel:

a. Due diligence
b. Sandbox API Access / Technology understanding and access
c. Contract Draft (assess the legal binding)
d. The flow of funds/transaction set / KYC / compliance questions
e. Correspondent tie-ups, processing & delivery networks
f. Commercials.

All of this from start to finish takes about 6-to-8 weeks.

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