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FAQ: Banking

  1. I learnt the concept of FBO/ Omnibus account/ Pooled account, so considering our models, how can we charge our service fee (let’s say 2% of the transaction amount) on behalf of our merchants (since we cannot touch the fund)?
  2. It’s mentioned that “the funds will be kept in the custodian accounts with the EMI, which has opened with particular banks”, how are we supposed to withdraw that fund to our bank account?
  3. Can you please explain if there is a pricing difference (lower cost) between: 1) Option to BYOBB/BYOMTO (Bring-Your-Own Beneficiary Bank / Bring Your Own MTO) 2) Manage our own FX Handling (Optional)
  4. Is the sponsor also going to provide the bank account for the company?
  5. A medical company in Venezuela requires $50,000 cash for its payroll; they wire us $50,000 in Florida, and we give them $50,000 cash in Venezuela minus the fee. Do we need to set up a correspondent tie-up agreement for such transactions?
  6. Do we need a correspondent tie-up agreement, if there is a licensed financial entity involved, like an exchange, or another Money Services Business?
  7. What is the difference between Reserve and Pre-funding under Balances & Reserves?
  8. If we are doing a balance check, do we also need to do a bank account verification? I think the balance check may be sufficient. Please advise.
  9. Do you think an ACH can be rejected (incurring reject fees) if we verify the balance ahead of time?
  10. What due diligence will need to be completed on our end?
  11. For the Bitcoin ATM business, are the financial institutions prescreened and verified?
  12. Why do we have to pay you (Faisal Khan, LLC) the monthly fees for banking and why not the bank?
  13. Who is in charge of authorizing the transactions? Will it be me or someone else?
  14. What is the minimum and maximum amount that a client can pay using a debit card? Also, what is the minimum amount that a client can send using ACH?
  15. What does a Good Funds & Settled Model mean?
  16. If we choose to settle into a US Bank Account (Nostro) via FedWire, what component of the transaction is settled here? Are the funds not being sent to the destination country bank?
  17. Is it possible to send money outside the USA?
  18. Can I send money to a third country like China or Europe?
  19. Can we propose our own payout provider?
  20. Would a US Bank Account (Nostro) via Fedwire be held in a foreign country? Would that be classified as Nostro accounts?
  21. Is it possible to get the interbank (mid-market rate)?
  22. Do you provide access to banking for Remittance-as-a-Service (RaaS)?
  23. We want to expand untapped corridors where correspondence arrangements are needed and are not available. Would we be allowed to make a correspondence arrangement with Banks in that territory?
  24. Can you give me more details about payment (payout) countries?
  25. We want to acquire an MSB Checking account, can you recommend a bank which understands how to partner with money transfer related businesses?
  26. Who is providing the payment rails to the countries we plan to send money to?
  27. What are the solution providers payout rails? How can we find out their commercial terms and delivery times for the pay out countries?
  28. As a fresh startup, what is the probability of being sponsored by a bank or an exchange company?
  29. Is banking for Bitcoin ATM business done through direct bank relationships or an intermediary?
  30. Will the bank account for my Bitcoin ATM business be able to accept deposits via armored carriers?
  31. We have already started to sign up clients for our B2C (Business to Consumer), for bank to bank transfers. Can you recommend other solution providers for this use case?
  32. Can I initiate a transfer without having the money flow through a bank I own?
  33. Can we get the US multi-currency accounts without being licensed in the US yet?
  34. Can I write “To be determined” or “To be negotiated” in the Term Sheet Consideration?
  35. Is handling crypto-currency already included in the pre-built application?
  36. Does the Bank Account Verification also include ID verification?
  37. How long does it take to transfer the money to the bank?
  38. How can you tell if the balance being converted to cash is from a credit card, a debit card, a gift card, or a prepaid card?
  39. Other than the receipt, are there other methods to see whether cash was deposited into the gift card or not?
  40. How long does it take for funds to process for my clients?
  41. Will the bank provide us with an API?
  42. Will I be offered a bank account or sub ledgers by the bank to store the money before it is transferred?
  43. Have you successfully brokered MSB accounts in 2020, and are they now banked?
  44. How are you able to keep up with the internal policy changes of the banks you work with?
  45. How do you determine which gift cards have been issued in the United States and/or which store has issued them?
  46. How long does it take to transfer the money from a gift card to our bank account?
  47. Is it possible for you to hold the funds in case I want to get them transferred to a different account?
  48. What is the timeline followed by your company after you accept a potential client?
  49. Are there any restrictions on MSB licenses that we should know about?
  50. Will I need to allocate tech or software staff to integrate the APIs?
  51. Once I sign the referral agreement, what should I expect next?
  52. What is the consultation and facilitation fees offered by your company?
  53. Are they (the principal license holder) going to hold some money? For example, if they got 100% from the customer, do they hold to the funds or will they release it all?
  54. Before we sign with your company, are there any reference projects we can see to help us make a decision?
  55. What are the next steps once I pay the referral fees?
  56. Other than your one-time referral fees are there any other charges?
  57. What is the best way to present our use-case to the partner?
  58. What happens if we decide not to move forward with the agreement?
  59. Is there a price list for renting each state money transmitter license?
  60. What is the rate for your services?
  61. How long does the process of signing the contract last?
  62. When would the work start once the contract is signed?
  63. How can I gain access to regulatory coverage for Canada?

This page was last updated on January 25, 2023.