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Education
A number of the new MSB startups have great ideas, smart Note that MSB regulations differ in each state. To
management and even deep pockets from investors. What understand how your business model would operate on a
they usually lack is the ability to sell. They also often lack national level, take a look at the laws of all 50 states, as well
the knowledge that sales is a necessary part of payment as applicable federal law. Although dipping into the MSB
business growth. realm is an enormous undertaking, and the consequences
of getting it wrong are dire, it can be well worth the time
Coming from the Facebook "Like me" generation, many and expense in the long run.
payment startups hope to simply catch a wave of interest
on the Internet that will result in massive popularity.
While this has been the case for a handful of well known When done properly and with
players, it is not true of most startups. Here is where real
sales, rather than basically gambling, comes in to add clearance from federal and state
value. regulators, many innovative models
Most new merchant accounts are created because of sales can operate without licensing or
by ISOs. The same reasoning could apply to a new MSB registration. The point here is to
payment model. If payment startups saw the true value of
the veteran sales channels and those sales channels took know what you don't know.
more time to integrate innovative offerings, we would see
more sales throughout the industry.
Niche that MSB In publishing The Green Sheet, neither the author nor the publisher is
Hopefully, you will take from this article a sense of both engaged in rendering legal, accounting or other professional services. If
the seriousness of MSB compliance and the niche value you require legal advice or other expert assistance, seek the services of
ISOs can bring to the many new payment businesses that a competent professional. For further information on this article, email
are all too eager to engage with merchants. Adam Atlas, Attorney at Law, at atlas@adamatlas.com or call him at
514-842-0886.
54
A number of the new MSB startups have great ideas, smart Note that MSB regulations differ in each state. To
management and even deep pockets from investors. What understand how your business model would operate on a
they usually lack is the ability to sell. They also often lack national level, take a look at the laws of all 50 states, as well
the knowledge that sales is a necessary part of payment as applicable federal law. Although dipping into the MSB
business growth. realm is an enormous undertaking, and the consequences
of getting it wrong are dire, it can be well worth the time
Coming from the Facebook "Like me" generation, many and expense in the long run.
payment startups hope to simply catch a wave of interest
on the Internet that will result in massive popularity.
While this has been the case for a handful of well known When done properly and with
players, it is not true of most startups. Here is where real
sales, rather than basically gambling, comes in to add clearance from federal and state
value. regulators, many innovative models
Most new merchant accounts are created because of sales can operate without licensing or
by ISOs. The same reasoning could apply to a new MSB registration. The point here is to
payment model. If payment startups saw the true value of
the veteran sales channels and those sales channels took know what you don't know.
more time to integrate innovative offerings, we would see
more sales throughout the industry.
Niche that MSB In publishing The Green Sheet, neither the author nor the publisher is
Hopefully, you will take from this article a sense of both engaged in rendering legal, accounting or other professional services. If
the seriousness of MSB compliance and the niche value you require legal advice or other expert assistance, seek the services of
ISOs can bring to the many new payment businesses that a competent professional. For further information on this article, email
are all too eager to engage with merchants. Adam Atlas, Attorney at Law, at atlas@adamatlas.com or call him at
514-842-0886.
54
