Benefits of Using a Regulated Money Services Business for Online Payments
As apartment renters prefer the convenience of making online payments online for rent and other services, property managers require a trusted platform for processing those payments. The world is paying more bills and making more purchases online than through the mail or in person, a trend that is expected to continue into the future.
Accepting payments requires an understanding of payment processes and how to manage and monitor transactional risk. Using a Money Services Business as part of your payment acceptance and settlement process can be a safe and secure option for your residents to make payments.
A Money Services Business (MSB) is a licensed, non-depository financial institution subject to regulation by FinCen (a division of the U.S. Treasury Department) and the state banking authorities that issue and oversee MSB licenses. Unlike other payment acceptance options, MBS’s are required to:
Monitor transactions to meet BSA (Bank Secrecy Act) and AML (Anti-Money Laundering) reporting requirements
Maintain an adequate capital structure and surety bonds based on state regulatory requirements
Subject themselves on-going reporting and examination requirements from state regulators
When thinking about the payment acceptance and settlement alternatives available, MSBs offer a secure and regulated alternative versus other providers.
Finding comfort with online payments
The payment processing industry is big business and continues to expand and evolve. Digital payment methods and transaction volumes are expanding across the globe. Like in many industries, COVID-19 left its mark in 2020 and has accelerated change.
In its 2020 global payments report, McKinsey notes that the pandemic impacted not just the way companies do business but also consumer spending behavior. A result was a decline in cash usage as the world embraced online spending – of total U.S. transactions last year, 28% were with cash, down 23% from 2010. McKinsey proj...