Money transmitter licensing is a state-level rule for entities that move money outside traditional banks. Payroll processors have historically avoided enforcement, possibly because the industry has low fraud rates and competent operators, though the exact reason is unclear.
Well, money transmitter licensing has been around for decades and decades. And the way it came about really is it's, it's a way to regulate anybody that is moving money that is not a bank because the banks are already regulated. And so this is done at the state level, the money transmitter licensing. And so it's been around for eons, but it really hasn't been in practice enforced against payroll processors. And we don't really know why. We'd like to think it's because we're good at what we do and there's not a lot of fraud in our industry. We're not quite sure, but in practice it hasn't.
