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Something that confuses me is that FaceCash seem to be the only company that is (outwardly) complaining/worrying about this. Presumably this regulation will af

Something that confuses me is that FaceCash seem to be the only company that is (outwardly) complaining/worrying about this. Presumably this regulation will affect all of the other payments companies in this space. (e.g., WePay, Venmo, Dwolla etc). It would be interesting to hear their thoughts on this.

tptacek 15y ago
According to the CEO of WePay, they have confirmed with the DFI that they do not require a money transmitter's license: http://www.quora.com/Does-WePay-have-a-money-transmitter-license http://www.quora.com/Does-WePay-have-a-money-transmitter-lic... Aaron himself says Square isn't a money transmitter: http://www.quora.com/Square-company/Will-Square-be-subject-to-the-California-Money-Transmission-Act http://www.quora.com/Square-company/Will-Square-be-subject-t... Payment processors are regulated differently than money transmitters: The money transmitter definition also provides that “the acceptance and transmission of funds as an integral part of the execution and settlement of a transaction other than the funds transmission itself ... will not cause a person to be a money transmitter.” [...] FinCEN has already concluded that a merchant payment processor acting exclusively on behalf of merchants receiving payments for goods and services, rather than on behalf of consumers making payments to merchants, is not a money transmitter.
thinkcomp 15y ago
Rich can confirm this (or not), but WePay is an agent of The Bancorp, Inc. (http://www.thebancorp.com http://www.thebancorp.com), which is a bank, so it's exempt from money transmission regulations. The Bancorp told me this morning that they consider WePay an exception and that they don't do it for anyone else anymore. I'd talked to them a while ago, but they're not so good about returning phone calls or e-mails. Venmo doesn't have any licenses to the best of my knowledge. Maybe they're an agent of someone, too. Dwolla thinks that they're exempt but I'm not entirely sure that's true. They have a credit union service provider as one of their investors, but that's not necessarily the same as being an agent of a federally chartered bank or credit union. Noca, Xipwire, Cimbal, LendingKarma, KoolWallet and others are affected as well.
- deleted 15y ago
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tptacek 15y ago

According to the CEO of WePay, they have confirmed with the DFI that they do not require a money transmitter's license: http://www.quora.com/Does-WePay-have-a-money-transmitter-license http://www.quora.com/Does-WePay-have-a-money-transmitter-lic... Aaron himself says Square isn't a money transmitter: http://www.quora.com/Square-company/Will-Square-be-subject-to-the-California-Money-Transmission-Act http://www.quora.com/Square-company/Will-Square-be-subject-t... Payment processors are regulated differently than money transmitters: The money transmitter definition also provides that “the acceptance and transmission of funds as an integral part of the execution and settlement of a transaction other than the funds transmission itself ... will not cause a person to be a money transmitter.” [...] FinCEN has already concluded that a merchant payment processor acting exclusively on behalf of merchants receiving payments for goods and services, rather than on behalf of consumers making payments to merchants, is not a money transmitter.

thinkcomp 15y ago

Rich can confirm this (or not), but WePay is an agent of The Bancorp, Inc. (http://www.thebancorp.com http://www.thebancorp.com), which is a bank, so it's exempt from money transmission regulations. The Bancorp told me this morning that they consider WePay an exception and that they don't do it for anyone else anymore. I'd talked to them a while ago, but they're not so good about returning phone calls or e-mails. Venmo doesn't have any licenses to the best of my knowledge. Maybe they're an agent of someone, too. Dwolla thinks that they're exempt but I'm not entirely sure that's true. They have a credit union service provider as one of their investors, but that's not necessarily the same as being an agent of a federally chartered bank or credit union. Noca, Xipwire, Cimbal, LendingKarma, KoolWallet and others are affected as well.

deleted 15y ago
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