Money Transfer Operator License Coverage Consulting Fees

Consulting fees for getting regulatory coverage in specific territories

The following are my professional consulting fees for each territory for regulatory (license) coverage:

Geographic Area Consulting Fees
United States (multiple states, STP – straight-through-processing. Cannot hold client funds indefinitely, funds must be processed within 72 hours). $20,000
United States (multiple states) with E-Wallet (ability to hold on to client funds, as opposed to straight-through-processing) $ 28,000
United States (multiple states except for the State of New York) for Cryptocurrency Coverage $28,000
Canada $15,000
Europe (including UK) € 20,000
Europe Only with IBANs € 25,000
Europe + UK with IBANs € 28,000
Australia/NZ $15,000
Additional Payment Processing $8,000
Additional Backup Options $5,000 -to- $8,000 (for the same region)

All costs above are one-time. Depending on the institution, the time-frame to establish such a relationship can be one (1) week (minimum) to twelve (12) weeks. On average it takes about five (5) weeks to go live.

At present, UK only regulatory cover is not provided for.

Regulatory Coverage Pricing by the Solution Provider depends on a host of factors. Your risk profile, the transaction set, territories where you want to do cross-border payments with (if applicable), the flow of funds, etc. Once a regulatory and payout coverage profile is assembled, then the term sheets can be obtained.

The greater the access from a single API, the more expensive it is – pretty much matches credit card rates (~2.9%). Just keep that in mind.

Smaller Coverage Area Consulting Fees
Less than 10 States (not including NY, TX, CA) $ 10,000
Less than 10 States, including any one or more of: NY, TX, CA $12,500

The following are rates for domestic payouts only (regulatory coverage to sign-up customers is not provided for), however, the transaction is given cover by a local MSB/MTO.

Description Consulting Fees
United States (ACH Payout) $ 7,500
United States (ACH + FedWire) $ 9,000
UK/EU € 8,000
China, South Korea, and Japan $ 15,000

Typically, you will pay US$ 20,000 for major US Coverage. All other territories are priced between US$ 15,000 to US$ 28,000. Depending on what it is. For example, you want, multi-rails, 40 State MTL (money transmitter license) coverage in the US, for ACH in-bound (i.e. sign-up customers and have access to payment rails), this is about US$ 20,000 + US$ 8,000 for a total of US$ 28,000. If you want for example a US Bank to offer the ability to take multiple clients from around the world, that is not being allowed at present due to the BSA (Bank Secrecy Act) and Patriot Act, where now any account being opened for someone else, that person must be physically present for KYC in the United States in front of the signing officer.

Getting master accounts for sub-FBO accounts is possible, but then again, you have to structure it as such, that the banks will allow the sub-accounts.

So, typically expect to pay US$ 20,000/geography per setup (setup = whatever payment rails the provider is providing. If the provider is providing ACH, debit, and credit, that is all part of one setup. If the provider is providing ACH only and you want Debit/Credit too, then we have to involve an external party and the price point changes – I cap this change to a maximum of US$ 8,000).

Be cognizant that each country comes with its own set of payment rails. By merely having access to the rails does not necessarily mean you can legally pickup transactions (or disburse) transactions in that specific geography.

Eg: You might have access to payment rails in New York State, but that does not grant you permission to sign up a customer or take their money from NY, just because you can do so. You must have the legal cover to do so as well. Legal cover means, either you must be licensed or have someone else’s license offered to you.

There is no discount or group discounts in the fees.