CSBS Data Corner: Agent of the Payee Interactive State Map
By Melissa Puccinelli
CSBS Senior Analyst
Money services businesses have become increasingly national in scale and scope. As of January 1, a total of 269 licensees operated in more than one state. In fact, 104 of these companies operated in 25 or more states, and 47 companies operated in 45 or more states.
While each state has a similar definition of money transmission, each state defines and interprets money transmissions and its exemptions differently. As a result, unwarranted time and money are spent on interpreting how money transmission is defined, and which persons and activities are exempt state-to-state.
Some states allow an agent of the payee, which is an exemption – by statute, regulation, or interpretation – that says an individual or company does not require a money transmitter license for the activity of receiving money from a person for payment for goods or services to a third party.
The interactive map below shows which states grant an agent of the payee exemption.