MSB Friendly Banks
Are you looking for a Money Service Business (MSB) friendly bank? If you are money transfer operator (MTO) based in either the US or outside the US and are seeking a bank account for your MSB business, I can possibly help.
Access to banking for money transfer companies is becoming extremely difficult all around the world, not just the US. Finding a bank to work with is like looking for a needle in a haystack.
We can provide banking services in the US for MSBs and MTOs. We can find you a MSB Friendly Bank.
Money Service Business Bank Account
We have partnered up with various banking & non-banking financial institutions who can provide your business access to banking for your money services business category.
MSB Friendly Banks – Who Can Apply?
If you are a licensed money services business in the United States and are either a start-up or an incumbent, you can most likely apply for an MSB Bank Account.
Most of the institutions we work with have the salient features and pricing:
- Fully Licensed US Financial Institutions
- Member Federal Reserve System or have access to the Federal Reserve via their upstream partners
- You get domestic ACH (Rates vary from as low as 15 cents to US$ 3.50/transaction, it all depends on the risk profile of your money services business)
- You get domestic Wire Transfer (US$ 15/transaction)
- You get international Wire Transfer (starting from US$ 35 -to- US$ 75 per transaction)
- Incoming Wire into your account are usually free. Some institutions may charge up to US$ 5 per transaction.
- Maintenance Fees varies between US$ 0 to US$ 199 to a maximum of US$ 3,999 per month (depending on your volume and value processed). This is levied directly by the counter-party and I have no control over this. It all depends on your risk-assessment. How well your compliance program is and your past operating history.
- FDIC Insured
- Outgoing Payments will bear your name.
- Outgoing Payments can also bear the name of your originating customer when acting as an intermediary for money transfers.
- Full dashboard access to your funds and payments
- One-time Bank signup fees: From US$ 0 to US$ 1,500
- Referral fees: See Pricing page for MSB Friendly Bank Charges (i.e. referral fees)
- Capacity to process monthly up to US$ 1Billion+
Your final price is dependent on the business model you have, your flow of funds and the risk assessment outcome.
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FAQ on Bank Account for Money Service Business
Q. How long does it takes to get the bank account?
A. It typically takes about 3 weeks to complete the due diligence to be approved. If everything is ready, the process can be as short as one week.
Q. When is the referral fees to be paid?
A. The Referral Fees is due when your account is approved. The Assessment fees is due up-front.
Q. Is this a genuine bank?
A. Yes it is. It is FDIC insured and Member of the Federal Reserve System.
Q. With whom will my contract be?
A. Your Money Service Business Bank Account will be with the Financial Institution itself. No one else.
Q. Does the bank know that the account will be used for money transmitter, money transfer related activities?
A. Yes, the bank is aware of this, and this is why they have especially made this product with their authorized delegate, who also happens to be their ACH/FedWire processor. So the bank is very much on board with this.
Q. Do you offer a free-trial account?
A. There is no trial account. You will have to qualify to get a full-working account in your business’ name.
Q. Do you work with Bitcoin companies??
A. Yes, if your Bitcoin flow of funds do not include anonymous &/or cash transactions, you can qualify for a bank account. Anonymous transactions are those defined as transactions not accompanying any KYC information.
Q. Can we deposit money (cash) into the account?
A. It depends. Some banking institutions may be okay with it, others are not. Depending on your model, you can always inquire within.
Q. Can we deposit checks into the account?
Q. Can there be a denial?
A. Yes, ultimately, the bank is the one that is keeping a check on the risk profile of each client. They can (at will) disallow the account or even not approve you. Whilst most entities do qualify, some don’t based on their risk profile (which usually stems from Cash dealing &/or KYC compliance program).
Q. How do I keep track of the payments, deposits and payments we need to make?
A. The dashboard. Your account dashboard would allow you to check balances, make ACH/Wire payments, check on deposits, download summaries, etc.
Q. Can we get better rates?
A. You could. You would be negotiating with the financial institution directly.
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This page was last updated on January 29, 2021.