Requirements to open a money transfer company

You know that money transfer companies They are responsible for the transfer of money between two parties that may be residing in two different countries or within the same country.

If your intention is to open a company of this type, you must adjust to the requirements of your state, since these vary depending on the state where you plan to install your business.

What are the requirements to start a money transfer company?

While the requirements to open money transfer companies They are variables from state to state and the best known are Western Union and Paypal, there are many more and you can start your own company if you meet minimum requirements that are generally the most common among states such as:

  1. Establish your business on a physical geographic site.
  2. Have a fixed capital.
  3. Have a surety bond.

Anyway, you can start your business in a fixed physical space within your city or establish it online or combine these two options and offer transfers in your physical space and online at the same time.

License for money transfer companies

In addition to complying with the requirements that the government of your state requires, you may need to obtain a money transfer license, with which you will pay the application fees corresponding to each of them, as each state establishes its own fees, but you can check them in the National Association of Money Transmitters.

The Business Register

You must obtain and send the application with the form to FinCEN 2017 by directing it to Financial Crimes Enforcement Network , the Treasury Department agency and within 180 days from the date you established the business.

You must also create a merchant bank account in the bank of your choice, as it will allow you to accept debit and credit card payments and allows you to deposit payments and recover funds from your clients.

Only open the business once all applications have been approved and you have the licenses with you.

Money transfer companies from the United States to Mexical

There are many options with which you have to send money from the United States to Mexico and you will find a lot of competition, since it is the destination that receives the largest number of transfers.

For this reason you must compare the location for the recipient to withdraw the money once re-transferred, the speed in the delivery of the money and the cost, for example Western Union and Money Gram are two viable options, but how they work:

Step 1: Browse through the websites of both money transfer companies to find the closest agent and specify the location in Mexico, then take the money you want to send along with the identification to the people you have chosen.

Although the method of sending the money may vary from company to company, it will generally be as simple as completing a few documents, delivering the money in cash or by credit card, paying the Northwest fee, and calling the recipient with instructions on how to receive the money.

To access Money Gram services in Mexico you can access sites such as Superama, Suburbia, Bodega Aurrera, Caja Libertad, Intermex, Calimax, FAMA, Soriana, Coppel and Wal-Mart México.

Step 2: Log in to your online payment processing account. If you use services such as Pyza, Amazon Payments or Paypal, linked to your credit card bank account, you will not have problems.

Pay pal has a service that operates with a Mexican version, so the recipient will need an account with the payment processor they use, but they can still register for free.

Step 3: Contact your bank of origin to organize a bank transfer to the person you want to receive the money, by phone or from homebanking if you have registered.

However, if you are outside the country it is possible that your bank has security restrictions that will limit the ability to make the transfer.

What are the best money transfer companies?

Besides Western Union, there are many other options for money transfer companies, What:

OFX: It is an online provider with low exchange margins and no upfront fees, which is why cash delivery is a cheap service. It is a digital transfer platform with a low margin of exchange rates from US dollars to Mexican pesos.

You can also set up rate alerts to send money when the rate becomes more favorable for you. Delivery takes 1 to 3 business days but has a limit of a minimum of $ 150 to send and transfers require bank accounts to send and receive money.

Remitly: It is also an online provider with low costs and fast cash delivery.

Money gram: It is a traditional transfer provider that offers you deliveries in a few hours and cash withdrawals in minutes.

Xoom: It belongs to a large network of online providers that delivers fast money in a few minutes.

Although the exchange rate is among the most expensive, the speed of delivery and other features make up for it, because from the website or the Xoom mobile application money can be sent to a recipient’s account in the main Mexican banks and the team Customer service is available 24 hours a day, 365 days a year and they speak in Spanish.

Western Union: In this case, transfers for cash withdrawals arrive in minutes while sending to bank accounts may take 4 business days, but you can send money online or with the mobile application and pay with a bank account, debit card or credit card. credit from the United States or from a Western Union agency in the United States.

Comparing the different money transfer companies, determine the ones that offer you the best services according to the money delivery options, the speed of that delivery, the exchange rate and the rates.