banking currency shipping
What are the relevant U.S. laws that cover businesses that disburse cash?
<p>I'm interested in starting a business that sends customers rolls of quarters (and maybe at most 1-2 per week at most), e.g. for paying for laundry washing and drying machines. I'd like to be able to accept credit card payments (only) but I haven't yet found a payment processor that will agree to do business with my (potential) business.</p>

<p>Several prominent online payment processors seem to prohibit this type of business from </p>

<p>There was previously a U.S. business, Washboard, that attempted to offer this product/service, but they only remained in business for a few weeks and they stated that their payment processor prohibited their business's activity.</p>

<p>What is it about the business that's <em>legally</em> problematic for payment processors? What are the relevant laws?</p>

<p>You might be considered a <a href="https://www.fincen.gov/money-services-business-definition" rel="nofollow noreferrer">money services business</a> (MSB).</p>

<p>Such business are regulated by the Treasury Department.  You can find an introduction to the relevant regulations <a href="https://www.fincen.gov/money-services-business-definition" rel="nofollow noreferrer">here</a>.  MSBs are subject to many <a href="https://www.fincen.gov/bsa-requirements-msbs" rel="nofollow noreferrer">requirements</a>, such as:</p>

<ul>
<li><p><a href="https://www.fincen.gov/money-services-business-msb-registration" rel="nofollow noreferrer">Registration</a></p></li>
<li><p><a href="https://www.fincen.gov/money-services-business-msb-agent-list" rel="nofollow noreferrer">Maintaining a list of their agents</a></p></li>
<li><p><a href="https://www.fincen.gov/money-services-business-msb-suspicious-activity-reporting" rel="nofollow noreferrer">Reporting suspicious activity by their customers</a></p></li>
<li><p><a href="http://www.ecfr.gov/cgi-bin/text-idx?SID=9bd185e43e8c6b2ef75acbb2e228806d&amp;mc=true&amp;node=se31.3.1022_1210&amp;rgn=div8" rel="nofollow noreferrer">Creating an anti-money laundering (AML) program</a></p></li>
</ul>

<p>Also, a bank or payment processor that opens an account for an MSB is subject to <a href="https://www.ffiec.gov/bsa_aml_infobase/pages_manual/olm_091.htm" rel="nofollow noreferrer">much more stringent regulations</a>.  In some cases, if the MSB is involved in money laundering or other illegal activity, and the bank has not exercised sufficient oversight, the bank can be liable.  As such, many banks may decline to open accounts for MSBs, charge substantial additional fees, or close their accounts on short notice if they see them as becoming too much of a hassle or risk.</p>
