Is it regulated?

Discussion in 'Growing and Managing a Business' started by mun, Jun 24, 2012.

  1. mun

    mun
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    Hi,

    It seems that if we offer branded prepaid cards to be used at a selection of stores, then we're most likely seen as working in a 'close loop' and don't need a license. So, such a business isn't regarded to be a money transmission business. But, are we a money service business?

    However, if the credits on a card can be transferred to another person and resold for real cash, would that complicate things?

    Thanks!
     
  2. Fergal

    Fergal
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    Welcome to Business Advice Forum mun , thanks for joining.

    What state or country would the business be based in?
     
  3. mun

    mun
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    Thanks!

    It'd be based in CA, but hopefully it could be expanded to other states too.
     

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