Key Takeaways: MSB Payment Processing
- Money Services Businesses (MSBs) are non-bank financial companies such as money transmitters and check cashers.
- MSBs must register with FinCEN and follow strict AML and KYC compliance rules.
- Many banks avoid MSBs due to regulatory and fraud risk, making merchant accounts difficult to obtain.
- Durango Merchant Services specializes in high-risk merchant accounts for approved MSB categories.
- Supported MSBs include licensed money transmitters, remittance services, and check cashing businesses.
- DMS provides compliance-focused onboarding, fraud protection, and long-term merchant account stability.
Money Services Businesses (MSBs) play an important role in the financial ecosystem by providing alternatives when traditional banking solutions aren’t accessible or practical. Whether it’s helping customers access cash quickly or enabling reliable money transfers, MSBs support millions of individuals and businesses every day.
At Durango Merchant Services (DMS), we specialize in high-risk merchant account payment processing and work with select Money Services Business categories that require dependable, compliant card acceptance. In this guide, we’ll explain what MSBs are, outline the MSB categories we can support, discuss the challenges MSBs face in payment processing, and show how DMS can help you secure and maintain a compliant merchant account.
What Is a Money Services Business (MSB)?
A Money Services Business (MSB) is a non-bank financial entity that provides specific financial services such as money transmission, check cashing, or value transfer. In the United States, MSBs are regulated at the federal level and must comply with strict anti-money laundering (AML) and know-your-customer (KYC) requirements.
MSB Regulatory Definition & Registration
Most MSBs are required to register with the Financial Crimes Enforcement Network (FinCEN) within 180 days of starting operations and must renew that registration every two years. Registration alone is not enough — MSBs are also expected to maintain ongoing compliance programs, detailed recordkeeping, and transaction monitoring.
Common Types of Money Services Businesses
The MSB industry has many verticals, but not all MSB categories are treated equally by banks and processors. Risk levels vary significantly depending on the services offered, transaction flow, and compliance posture.
MSB Categories We Can Support
At Durango Merchant Services, we focus on MSB models that align with our banking partners’ underwriting guidelines. We can provide merchant accounts and payment processing support for:
Money Transmitters & Remittance Services
Money transmitters and remitters facilitate the movement of funds from one party to another, including domestic and international remittances, bill payments, and payroll-related transfers. If you are a properly licensed money transmitter, DMS can help you accept credit cards, debit cards, and other approved payment methods securely and efficiently.
Check Cashers
Check cashing businesses provide immediate access to funds by cashing payroll, government, or personal checks for a fee. These services are an important financial lifeline for unbanked and underbanked communities. Our merchant account solutions are designed to support compliant check cashing operations while meeting processor and banking requirements.
MSB Categories We Cannot Support
To manage risk and remain compliant with our acquiring partners, we are unable to service MSBs involved in:
- Digital or stored-value wallets
- Forex trading
- Money orders
- Wire transfer services
- Peer-to-peer (P2P) payment platforms
- Quasi-cash transactions
Why MSB Payment Processing Is Considered High-Risk
Even compliant MSBs often face challenges when seeking payment processing. Traditional banks and processors tend to view MSBs as high-risk due to:
- Increased regulatory scrutiny
- Higher perceived fraud exposure
- Complex transaction flows
- AML and KYC enforcement obligations
- Potential chargeback risk
As a result, many MSBs experience merchant account denials, excessive pricing, rolling reserves, or sudden account terminations — even when operating legally.
Without a stable merchant account, MSBs are limited in how they can accept payments, which directly impacts growth, customer convenience, and operational efficiency.
MSB Compliance Requirements for Payment Processing
Payment processing for MSBs isn’t just about technology — it’s about compliance. To maintain processor and banking relationships, MSBs must typically demonstrate:
- A documented AML compliance program
- KYC and customer verification procedures
- Transaction monitoring and reporting
- Recordkeeping and audit readiness
- Policies for handling suspicious activity
At Durango Merchant Services, we help MSBs understand how these compliance requirements intersect with merchant account underwriting and ongoing account monitoring.
How Durango Merchant Services Supports MSBs
Our MSB Merchant Account Solutions Include:
1. Customized Merchant Accounts
We match your business with acquiring banks that support MSB transaction volumes and business models.
2. Compliance-Focused Onboarding
Guidance on documentation, licensing, and AML/KYC alignment during underwriting.
3. Advanced Fraud & Chargeback Protection
Tools such as real-time monitoring and chargeback management to protect your account.
4. Faster, Streamlined Approvals
Efficient onboarding for eligible MSBs, reducing delays and unnecessary back-and-forth.
Step-by-Step: Getting an MSB Merchant Account with DMS
While every MSB is unique, the general approval and compliance process typically includes:
- Reviewing your MSB category, licensing, and compliance posture
- Gathering required business and regulatory documentation
- Matching your business with an MSB-friendly bank
- Provide guidance on fraud and transaction monitoring tools
- Ongoing monitoring and optimization to maintain compliance
Our team stays involved beyond approval, helping you adapt as regulations, volume, and risk profiles evolve.
Why Choose Durango Merchant Services?
At Durango Merchant Services, we’re more than just a payment processor — we’re a long-term partner. We’ve helped MSBs secure reliable merchant accounts where traditional providers wouldn’t, while prioritizing compliance, stability, and scalability.
Whether you’re a money transmitter expanding your remittance services or a check casher modernizing how you accept payments, our team understands the nuances of MSB payment processing and underwriting.
- Reviewing your business model before underwriting
- Identifying red flags early
- Helping prepare documentation properly
- Communicating directly with acquiring banks
- Setting realistic approval and funding expectations
Ready to Get Started?
If you operate a compliant Money Services Business and need dependable merchant account payment processing, Durango Merchant Services is here to help.
While each case is unique, realistic approval timelines look like this:
Same day to 24 hours: Preliminary underwriting decision (for fully compliant prepared applications in less risky industries)
1–3 business days: Full approval and account setup (most common)
3–5 business days: Complex, international, or higher-risk models
Contact us today for a free consultation to discuss your MSB model, review eligibility, and explore approval options. We’ll help you navigate the challenges of MSB payment processing — and build a solution that supports your growth.
Pricing, Reserves, and What to Expect with Fast Approvals
Even when approval is expedited, high-risk pricing fundamentals still apply. Typical pricing includes:
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Discount rates from 1.95% to 4.95%
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Authorization fees between $0.15 and $0.25
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Monthly account fees ranging from $15 to $60
Rolling reserves may still apply, particularly for new businesses or annual billing models. These reserves are risk safeguards, not punishments, and often decrease as processing history improves.
Transparency upfront prevents surprises later.
Money Service Business Merchant Account FAQs
What is a Money Services Business (MSB)?
A Money Services Business (MSB) is a non-bank financial business that provides services such as money transmission, remittances, or check cashing. In the United States, MSBs are regulated at the federal level and must comply with anti-money laundering (AML) and know-your-customer (KYC) requirements, including registration with the Financial Crimes Enforcement Network (FinCEN).
Why are MSBs considered high-risk for payment processing?
MSBs are often classified as high-risk due to regulatory oversight, fraud exposure, chargeback risk, and complex transaction flows. Many traditional banks avoid these businesses altogether, which can make it difficult for compliant MSBs to obtain or keep a merchant account without a specialized provider.
Do MSBs need to register with FinCEN before getting a merchant account?
Yes. Most MSBs are required to register with FinCEN using Form 107 within 180 days of starting operations and renew that registration every two years. Proper registration and documented AML/KYC procedures are typically required during merchant account underwriting.
What types of MSBs can Durango Merchant Services support?
Durango Merchant Services supports select MSB categories that meet banking partner guidelines, including licensed money transmitters, remittance services, and check cashing businesses. These businesses must operate within defined regulatory and compliance frameworks.
What MSB activities cannot be supported for merchant accounts?
To manage risk and maintain compliance, Durango Merchant Services cannot support MSBs involved in digital wallets, Forex trading, money orders, wire transfers, peer-to-peer payment platforms, or quasi-cash transactions.
How does Durango Merchant Services help MSBs stay compliant?
DMS helps MSBs by matching them with MSB-friendly processors, assisting with compliance-focused onboarding, supporting AML/KYC alignment, implementing fraud and chargeback monitoring tools, and providing ongoing guidance as regulations and risk thresholds evolve.
