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Starting Your Money Transfer Business

When starting a money transfer business, it is important for you to analyze the market and determine factors like the potential affiliates, competitors and the primary customer base. But there are plenty of other factors that need to be kept in mind to make sure you are not in way over your head. However, this does not necessarily have to be a complicated task even though it can prove difficult. Here is everything you need to need to know about starting your money transfer business for effective results in the long run:

Meet Your State’s Minimum Requirements

The only way you can start a money transfer business is by meeting your state’s minimum requirements. The requirements often include and are not limited to, a surety bond or a minimum net worth.

Acquire a Money-Transferring License

It is important for you to pay all application fees in order to acquire a money transferring license. The requirements for both the application fees and license depend on the state you wish to set up a business in. For more information, there is no harm in getting licensing requirements for each specific state from the National Money Transmitters Association.

Submit the Registration of Money Services Business Applications Form

Once you have obtained a registration of money services business application form, fill it and submit it to the Financial Crimes Enforcement Network right away. The agency is a part of the Department of Treasury, and you haveto submit the form within 180 days after establishing your business.

Set Up a Merchant Bank Account

After choosing the bank you wish to work with, set up a merchant account. This will give you and your business the ability to accept debit and credit card payments without hassle. But that is not all, as deposit payments can also be retrieved and made into your customers’ accounts.

Start Business Operations

Having completed the steps described above, you can finally start your business operations. You can accept any and all money transfer requests from a store or offer your services online instead, using your business’s website to keep costs low.

Invest In a Good Money Transfer Application

Apart from the aforementioned steps, there are additional factors you need to keep in mind to simplify the process. This includes investing in an excellent money transfer application that is not only simple to use but effective as well. Moreover, the application should not be restrictive so you can update and upgrade it based on feedback and results over time. But all this needs to be done keeping your business requirements and objectives in mind, without which the business will fail to be successful in the long run.

So, now you have everything you need to get started with your money transfer business. As mentioned earlier, it can be a bit complicated, but you can overcome any and all obstacles as long as you keep things simple. Enough emphasis cannot be placed on the fact you need to do some homework and invest in good money transfer software. Once that is taken care of, there is no reason why your business will not flourish and grow as you want it to.

The remittances sent around the world have increased manifold over the past few years.  Every year increasing number of remittances is sent across the countries. Despite worse economic conditions, the number of remittances has increased in the year 2012 and 2013. Remittances depend, to a great extent, on the number of migrants; both across the countries and within the country. Following are the statistics on the remittances that would help money transfer businesses realize how big a money transfer industry is, and has the potential to grow even bigger.

International migration has a great impact on the economic growth of the country – both the origin and destination. According to the United Nations, more than 230 million people live outside their countries of birth in 2013. An even larger number of people migrate within their countries – 700 million. People migrate in search of better living and higher income. Hence, it wouldn’t be a false proposition to state that migration is directly proportional to the remittances.

With increasing number of migrants, the remittances have increased as well. People in other countries tend to support their families in home countries. A large number of migrants belong to the developing countries. It is estimated that $414 billion are sent in remittances to the developing countries in 2013. This figure increases to $550 billion when remittances to developed countries are added. This is the record number of remittances sent across the world, and shows an increase of 6.3 % over the last year.

Developing countries are the ones that receive most of the remittances. Understandably so, developing countries are poor relatively to the developed countries, and hence migration takes place from the developing countries towards the developed ones. The largest recipients of remittances are India ($71 billion), China ($60 billion), Philippines ($26 billion) and Mexico ($24 billion). All these are developing countries. The first two, India and China, are the world’s most populous countries, and hence migrations from these countries represent an increased number of remittances sent back.  Other large recipient countries are also developing ones; Egypt, Pakistan, Bangladesh, Nigeria and Vietnam.

As a share of GDP, the list is again dominated by the developing countries as a recipient of remittances. Tajikistan, a developing country, receives remittances that are equal to 48% of their total GDP. This means that almost half of Tajikistan’s GDP depends on the remittances. Other countries that are large recipients of remittances include Kyrgyz Republic (31%), Nepal (25%), Lesotho (25%) and Moldova (24%).

Remittances, as evident from the above figures, play a very significant role in the lives of people living in the developing countries. Remittances sent back home help better the financial situation of millions of people. Remittances help economies as well. Higher remittances  mean that people will have more funds to spend, and higher spending means higher economic activity, which is always good for any economy.

However, the remittances sent across the countries have a price – the money transfer fee. The money transfer businesses charge a small fee when money is sent through them to other countries. This fee varies from business to business. Remittances costs have fallen steadily over the last few years, but they still remain high; especially in Africa and in countries where the dependence on remittances is high.

All money transfer businesses will be encouraged by the figures above. The good news for them is that the remittances are estimated to increase in the next few years. Hence, there are more chances for the money transfer businesses to make more money in the future.

Links:

www.moneytransferapplication.com

http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/0,,contentMDK:21924020~pagePK:5105988~piPK:360975~theSitePK:214971,00.html

The number of money transfer businesses has been expanding rapidly over the last few years. Every year higher number of remittances are sent across the world. Most of these remittances are sent from the developed countries to the developing ones. Going by the numbers of remittances, the number of money transfer businesses has increased as well. However, a money transfer business needs to follows some rules and regulations before they can begin the business. They need to be in compliance with rules and regulations set by their respective countries’ governments. The rules and regulations that all money transfer businesses in the UK need to follow are set by HM Revenue and Customs. Following are few of the rules and regulations which they need to follow.

Before the rules and regulations are stated, it is important to know why the money transfer businesses need to be in compliance with HMRC’s set rules. The reason why governments need money transfer businesses to observe rules and regulations is so that money cannot be transferred across the border for wrong means. For example, people can be transferred to finance illegal activities in other countries. Money transfer businesses can also be used to facilitate money laundering. Because money transfer businesses are easy to start and easily accessible to the public, these businesses have every chance to be used for the wrong reasons e.g. money laundering.

Money laundering is a serious crime. All countries around the world have set strict rules and regulations in order to combat money laundering. They do so because money laundering can have a very negative effect on the economy. Money laundering allows people to evade taxes, transfer black money (money earned through illegal means) to other countries and motivate earning through illegal means – all of which damage the economy. In addition, money transfer businesses need to follow these rules and regulations in order to allow the government to monitor the funds. In the past, money transfers have been made to finance illegal activities in other states. Therefore, it is very important to follow HMRC’s rules.

The money transfer businesses in the UK need to follow the regulations set by the HMRC. Whenever money is sent abroad, the money transfer businesses in the UK are meant to keep an identity-record of the sender of the money. According to the rules, a money transfer business need to have a valid ID of the sender. They can ask the sender for a photo ID like driving license or passport. They are also entitled to have contact information of the sender e.g. an address, phone number or in some cases an email.

In many cases the money transfer businesses may have a regular client e.g. a business that regularly sends money to countries to finance their businesses. In this case, the money transfer businesses need to verify the information given by the sender. They, however, do not need to verify information for every transaction. The verification for every transaction depends on each business i.e. some can choose to verify information more regularly than others. The verification part is effective when a large sum is transferred and does not apply to funds that are less than £1000 or in some cases £600.

The HMRC has a complete set of rules and regulations for the money transfer businesses to follow. Stating all the rules and regulations in detail would take a lot more space. But they are available on HMRC’s website. However, it is important to know why these rules are set, which has been stated above. Also, few of the main points of the regulations have also been stated which will be a good starting point.

Links:

www.moneytransferapplication.com

www.hmrc.gov.uk

Consistent improvements lead to successful businesses. Money transfer business is no different. A money transfer business can be improved and hence be successful. However, identifying what needs to be improved is perhaps one of the most important tasks for any business. For money transfer businesses, it has to be going online.

Money transfer businesses, until now have been more or less the same as they were over the last many years. Despite massive increase in remittances around the world, and huge technological changes, the money transfer businesses perhaps have not adapted to the changing world as they should have. There is no denying that there have been some positive changes in the money transfer industry, but there is a lot more potential.

An overview of the last decade’s successful businesses reveals that technology is at the heart of these businesses. Internet has taken the world by storm and most of the businesses have used it to take their businesses one step forward. Having changed the way business is done, being online is one of the most important parts of any business today. And, this is what money transfer businesses should do in order to be more successful.

Money transfer businesses can grow even more if they go online i.e. get a money transfer business application and go online. Getting a money transfer business application would make day-to-day business more efficient. Money transfer applications can be made exclusively for each business, taking every business’ unique requirements on board. There are application developers that would take a detailed input of the businesses and then develop money transfer applications according to their requirements.

Similarly, business application developers, like <FinCode>, would make sure that all the necessary information, which a business thrives on, are taken special care of while designing an application. The application can include information on exchange rates, total number of transactions and all other requirements that a business needs.  A money transfer business application would thus help in smooth running of a business, and a lot more efficiency.

The money transfer businesses can also go one step ahead with the technology. They can make applications that would inter-connect potential customers to the businesses. Thus, a customer would be able to connect to the business, and hence send money abroad by barely using the app on their mobile phones. Software developers can help develop mobile apps for the consumers that would connect them to the money transfer businesses. Doing so, would allow the customers to use the services of the money transfer businesses, by using the app on their mobile phones. This way the businesses would have a far wider market base, and would be able to reach a lot more potential customers.

Change is the only constant, and money transfer businesses can succeed a lot more by changing the way they do business. Observing successful businesses through the history, one thing is common among them all, that is they have changed with time. By change, it is not meant that they have changed their businesses, but that they have kept themselves updated with the technological changes. Perhaps, it is now time for the money transfer businesses to get money transfer business applications and take one giant step towards a successful future.

Links:

https://moneytransferapplication.com/

http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDECPROSPECTS/0,,contentMDK:21121930~menuPK:3145470~pagePK:64165401~piPK:64165026~theSitePK:476883,00.html

With the growing remittances industry, the option to begin a money transfer business has been growing – after all by record, a good amount of money was sent abroad last year. Following is the information on how a money transfer business works, how the money is sent, is it safe, how online payments are made and others.

To begin with, it is important to know a bit about the history of money transfer business. A money transfer business dates back all the way to 1800s when people used to communicate through telegrams. A person sitting thousands of miles away would send a message on a telegram, and hence communicate the message through. The money transfer businesses, then, used telegrams to communicate about the money being sent. For example, a person would go to a money transferor with an amount, the money transferor would send a message on the telegram with the amount figures, and hence the person on the other side of the telegram would forward the amount to the receiver of the money. It was simple.

It was simple but it needed the sender and the receiver of the money to be both present at the telegram office (in this case money transfer business office). As time progressed, and as the technology improved, the money transfer industry improved as well. With the advent of telephone, fax, email and the internet, sending money abroad has become a lot easier and quicker.  Today money is sent online.

Sending money online is an online version of the old fashioned ‘wiring the money’ i.e. Wiring money through use of modern technology. The money transfer businesses, or the banks, use the electronic funds transfer (EFT) to send money across. In other words, they do not send the actual money across, rather send the data that represents the amount. For example, if I have to send money from my account to someone else’s account in another country, then I do not have to send the ‘actual’ money but only the data that represents the amount.

Sending money abroad or making international payments have become so fast paced that it requires only few minutes. Thanks to the internet, the data is exchanged instantaneously and money is delivered across. However, with internet there is always a question of safety i.e. How safe is it to send money (or rather data that represents the amount) over the internet where it can be hacked. This problem has been dealt with.

Money is transferred on the internet safely with the help of highly secured layers of coding. In simple words, the data that is sent over the internet is coded several times so that it is illogical for the hackers. Once the data is received at the destination, the coded data is decoded and it makes sense or represents actual amount. This way the money is sent across safely.

The money transfer applications (computer softwares) can help a great deal in making payments. These softwares make businesses smoother, quicker and safer. Money transfer applications are built by specialist companies (such as <FinCode>) for the businesses in order to smoothen the process of sending money. Business applications would make sure that the money sent by the money transfer business is sent securely over the internet. The money transfer applications will be tailor-made for the each particular business, thus making a unique product for a unique business.

In addition to the above, a money transfer business needs to be registered with the government. The money transfer businesses have to comply with rules and regulations set by the respective countries in order to combat money laundering.

Money transfer business is simple, easy and secure. It works on the old phenomenon of wiring the money. The convergence of modern technology with the old idea has made this industry one of the fastest growing industries.

A money transfer agent in a foreign country is one that operates in other countries as part of the main business in a home country. For example, if there is a money transfer business that has initially been set up in the UK, and if it has established its offices in other countries, then these ‘other offices’ are agents of the main money transfer business. A good and successful money transfer business will have agents all over the world. Higher the number of agents, higher the access rate to people and hence higher will be the number of transactions.

Becoming a money transfer agent for a large money transfer business that has already been established is easy. The money transfer businesses provides all the required and needed facilities to the agents in order to establish and get their businesses going. For example, the money transfer businesses would provide the technical know-how, the manner in which transactions take place, logistics (in some cases) and several other things that are necessary to set up the business. The agents, after receiving the expertise and setting up the branch, become a part of the business.

Established money transfer business, ones that have been in the industry for many years, may find getting an agent easier than those that are not so well established. The established money transfer businesses give the opportunity to almost every business to become an agent. Because a money transfer business does not need a lot of investment, neither does it require having a great deal of expertise, these businesses can be run by almost anyone. For example, a money transfer business can be set up in a store, or in an off-license. All that an agent needs to become a money transfer business is a computer, an internet connection and system software – all of which are mostly provided by the main businesses.

However, getting an agent in a foreign country may be slightly more difficult for the money transfer businesses that are not so well established. For example, a money transfer business that has recently begun to operate would find it rather difficult in comparison to the already established firm to get an agent. The newly established businesses would need to do a few things in order to get themselves agents in foreign countries.

These businesses, first, have to find an agent that they believe they can trust and can go into business with. Because the money transfer business is highly regulated and monitored, it is important for the businesses to keep a clear record of the transactions, and of the sender and the receiver. Second, because every country has different rules and regulations for the money transfer industry, the businesses have to fulfil all the rules and regulations of the country. In some countries, getting a money transfer agent means getting a separate office which will work exclusively as the money transfer agent, while in other countries money transfer businesses can be set up as a side business of another business. Also, a money transfer business that wishes to get agents in the foreign countries should get a money transfer business application. By getting a money transfer business application, the businesses can access the records easily.

Hence, getting a money transfer business agent is not a straight forward task. It varies from one country to another. Large businesses may find it relatively easier to get an agent to those that have newly opened their businesses. Also, every country has a different set of rules for money transfer business which the agents need to fill.

Money Transfer is an expanding business. Every year, the amount of remittances sent abroad increases. Millions and billions of pounds are sent across the world each year. International payments are an important part of the global economy – some of the developing countries’ economies benefit a great deal from the remittances sent into their country.

With increasing remittances, the number of money transfer businesses are increasing as well. The number of money transfer businesses have increased rapidly in the last few years. However, growing number of businesses also pose a risk of money laundering – a serious financial crime. Money laundering is very dangerous for the economy. Not only money laundering helps in transferring black money across, but it also encourages illegal businesses. To stop money laundering, all money transfer businesses in the UK and EU are required to follow rules that would help prevent money laundering. The rules and regulations could be different in different countries.

If you have a money transfer business then you are termed as ‘Payment Service Provider’ by the HMRC. All Payment Service Providers are required to comply with EU payments regulation. These regulations are set to prevent, detect and tackle money laundering. According to these rules, the money transfer businesses are required to send information about the payer (sender of payment). So if a sender needs to transfer money to another country then the money transfer businesses need to send the information about the sender with the funds. This also helps the government in tracing the money in order to ensure that the money is not used for the wrong means.

The funds can be transferred electronically from one account to another account by the money transfer businesses. The sender of the money can pay the money to the money transfer businesses in cash, by cheque or by a bank transfer. If payment service providers i.e. a money transfer businesses which send and receive money, are both in the EU then the sender’s information may not be required to send along with the transfers. The sender needs to give only the account number or other unique identity of the person receiving the funds. This does not apply to money sent to countries other than in the EU.

As stated above, the money transfer businesses need to have information on the sender. The information include money sender’s name, address or their place or date of birth, sender’s unique identity number and the payer’s account number. These are mandatory for the money transfer businesses to obtain when accepting to send money abroad. International payments hold particular importance in this regard as the sender’s information must be recorded. In some cases, money transfer businesses are required to verify the information presented by the sender. The information can be verified by asking for a passport copy of the sender, a photocard driving license or a document issued by the government as an identity.

Money transfer businesses that have regular customers (i.e. regular senders of money) are required to verify the information. Money transfer businesses often go into a business relationship with other businesses and hence, as per EU payment information rule, are required to verify the information provided by the businesses.

Regulation in money transfer business is extremely important. It helps tackle money laundering, which is a serious financial crime and weakens the economy. In addition, regulating money transfer businesses gives an inside information on the state of the economy, migrants, money sent abroad and other key macro economic variables.

Links:

https://moneytransferapplication.com/

http://www.hmrc.gov.uk/mlr/your-role/EU-payments-reg.htm

Currency rates rise and fall throughout the year. The constant buying and selling of currencies make the exchange rates fluctuate – non-stop. The variation in the exchange rates has effects – good effects for some, bad effects for others. Following is a brief explanation of how fluctuation in exchange rates affects businesses, and how money transfer businesses can benefit from it.
An exchange rate is the value of one currency in terms of another currency. In simpler words, amount of pounds/pennies needed to buy one dollar, or the amount of dollars needed to buy one pound. Today, the exchange rate between the US dollars and British pound is £1 = $1.6. It means that one pound can buy 1.6 US dollars, or in other words, $1.6 can be exchanged for £1. But an interesting, and an important, question is that why do currencies/ exchange rates fluctuate?
The exchange rate fluctuates because of demand and supply in the currency markets. Yes, there are currency markets that work non-stop, 24×7 throughout the year. People buy and sell currencies in the currency markets. Normally, the buyers and sellers in the currency markets are the representatives of the banks and businesses that need foreign currency to make payments in the foreign country. For example, a large bank or a business may decide to open a branch in a foreign country. To meet the expenses of opening up a new branch, the bank or the business needs foreign currency. So, they buy the currency in the currency market, and hence meet the expenses.
This demand and supply of currency make the exchange rates fluctuate. An increase in demand in one currency would result in a higher rate of that currency i.e. higher price of the demanded currency. Similarly, if a currency is supplied in abundant amount on the market, then the price of that currency may fall down – basic economic principles of how high demand results in high prices and high supply results in low prices.
However, the rise and fall in the exchange rate have an overall effect. By overall effect I mean that a variation in exchange rates may affect businesses throughout the country. Let’s take an example of an import-export business. An importer that imports furniture from the US to the UK will benefit a great deal if pound’s value increase in terms of US dollars. If one pound was equal to $1.65 then the importer would import, let’s assume, 10 chairs. However, if pound’s value increases and now one pound is equal to $2, then the import business can afford to buy more than 10 chairs. This is because, after the rise in pound’s value, the business can buy more with the same amount of British pounds than it could before.
Questions can arise that not all businesses are imports and exports businesses, and hence how do other businesses benefit from the variation in exchange rates? The following example answers this question. Let’s suppose there is a restaurant in a top tourist destination in the US. If dollars decrease in value, then the holiday packages become cheaper in terms of British pounds. This is so because one pound can buy more things in dollars now, than it used to. So people who couldn’t afford the holidays to the US before the variation in exchange rate, can do so now. So a higher number of tourists would make it to USA, and hence to the restaurant that is situated at the top tourist spot. Eventually, the restaurant will have a higher number of customers.
Amongst the fluctuations, money transfer businesses can benefit a great deal. A rise or drop in exchange rate would make people send more money across or frequently in order to benefit from the exchange rate. As the number of transfers increase, the money transfer businesses will have more business to do, and hence charge their fees in greater number.

Links:

www.moneytransferapplication.com

http://www.bankofengland.co.uk/boeapps/iadb/Index.asp?first=yes&SectionRequired=I&HideNums=-1&ExtraInfo=true&Travel=NIx

All businesses that wish to operate in the UK need to have a business license. A business license is a certificate issued by the government in order to allow the individuals or partners to run businesses legally. These certificates are issued for a couple of purposes. One, they are used to identify and keep track of all the businesses operating in the country; and, two, the businesses are taxed by the state.

Every business in the UK needs to obtain a business license, or register with HMRC. There are different types of business licenses issued by the government. Depending on each business, obtaining a business license may differ from business to business. For example, an import export business may need to obtain a different sort of business license than a jewellery business; similarly a restaurant may need to have a license that is quite the opposite of a tiles business. Regardless of the business type, every business must have a business license.

A money transfer business needs to have a valid business license issued by the government. All businesses operating in the financial sector need to register with anti money laundering scheme. Similarly, a money transfer business also has to comply with the money laundering rules and regulations set-up by the state. Businesses operating in the financial sector are supervised by the government. The regulation of the financial sector is an extremely important part of a financial system of the economy without which many financial crimes may take place.

The financial regulations are applied to the following businesses:

• financial and credit businesses
• accountants, tax advisers, auditors and insolvency practitioners
• Trust or Company Service Providers
• estate agents
• casinos

As can be seen, these businesses have to deal with the financial aspect of the economy. The financial and credit businesses are required, by law, to keep money in their accounts. The accountants, tax advisers and the service provider companies are needed to keep their record and file their credit ratings with the government. Similarly, estate agents and casinos need to have a clear record of all their transactions. All these businesses make an integral part of the economy, and contribute a great deal towards the tax revenues of the government.

Businesses operating in other sectors also need to register with their respective regulatory authorities that are set up in the state. All the businesses are regulated for various reasons. For example, as stated above, financial businesses are regulated in order to combat money laundering, the restaurants are regulated for health purposes, and other businesses are regulated for other various reasons. It is very important for the businesses to register with these regulated authorities and is illegal to run a business without registering with them.

The government website contains all the detailed information about business licensing, supervisory authorities for each business, and on how to apply for the business licenses. A money transfer business cannot be started before registering with the HMRC and signing in with the anti money laundering scheme. The following links provide further, detailed information.

Links:

www.moenytransferapplication.com

https://www.gov.uk/anti-money-laundering-registration

https://www.gov.uk/set-up-business-uk/register-your-business-in-the-uk

You may have a money transfer business and you may be doing quite well. But, there is always a desire, in every one of us, to take the business one step ahead; to get ahead of our competitors; to offer just a little bit more that could attract more customers and get us ahead of our rivals. Getting a money transfer business application is that one extra step that can take your money transfer business to new heights. And, it’s easy.

Money transfer is a big industry. Every year millions and billions of dollars are sent across the world. Because of the increasing number of migrants, the need to send money across the countries has increased manifold over the years. To meet the high demand, money transfer businesses are quickly expanding, and new ones are entering the market. In such competition, keeping an edge over the rivals is important for the businesses. And getting a money transfer business application could be that one extra thing that gets your business one step ahead of your rival.

A money transfer business application helps the business in many ways. To begin with, the money transfer application developer gets all the important information about your business (not the ones that businesses want to keep secret but rather the information that is important to run business efficiently). After the information is received, the application developers like <FinCode> put in all their expertise and knowledge of making successful business application into action. They make sure that an application is made that is simple to use and yet is more efficient than any other application on the market.

For example, the money transfer business application developer would ensure that the business transactions are carried out easily and securely using their application. Most of the businesses are concerned about the security of the online transactions. But they do not have to worry about security of transaction because application developers like <FinCode> particularly make sure that the transactions are safe. The application makers also make sure that sending money abroad and international transactions are made as efficient as possible. With every business being different from the other, in some sense at least, the app developers can customize application to each business needs.

Sending money online is regarded as the future of the money transfer industry. With technological changes, and increasing number of businesses, the future businesses may well thrive on the online money transfer systems. Logically, since almost everything has gone online – from online banking to online shopping and to online gaming – money transfer business is heading to only one direction – online. Therefore, to keep pace with the rapidly changing world, getting money transfer business applications are vital.

Online money transfers are easy and quick. They do not need the customers to go face to face to a money transfer representative. All it needs is to have a mobile app (that would be developed by the money transfer business) and the account, from which the customers can send money with the touch of their screens.

Money transfer industry is a competitive industry. Staying in the competition and finding market share for your business, may not be easy. But being proactive rather than reactive is a lot more important in this severely contested industry. In fact, getting a money transfer application is not a brand new phenomenon. A lot of businesses, being ‘proactive’, have already got money transfer business applications. The only way a money transfer business can be taken one step ahead is to keep pace with the technological progress, and getting a money transfer application is certainly one.

Links:

https://moneytransferapplication.com/

http://www.researchmoz.us/global-money-transfer-remittances-market-report-2013-edition-report.html?vsmaid=463