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by dpark 5349 days ago
And why exactly do you imagine that Square couldn't debit directly from a checking account in the future (as the article mentioned)?
1 comments

Because they don't have any money transmitter licenses and it will take them a few years to get them.
You're seriously still beating this horse?

Why couldn't they partner with another institution that already has the appropriate licensing? Or, alternatively, they seem well enough funded to be able to post the appropriate bonds.

I get your position, but with the constant whining, you're not winning over people.

First, I'm not trying to win you over. I'm trying to get a license, as is my right.

Second, a lot of people consider the particular fight I've chosen to pick fairly important, as it would do a lot to corrode the monopoly that banks hold on payment processing. So one person's whining is apparently another's heroic battle (not my words).

Third, the issue of money transmission licenses is also directly relevant to this particular topic.

I get it, I really do. I also think that freeing up the financial industry is needed. I'm not convinced that your way is the right one, but I'm not opposed.

But I'm worried that you are starting to get into RMS territory... that most of what I read from you here is on this one issue, from a very distinct viewpoint. I'm not saying you're wrong (or that RMS is), just that such a myopic view isn't always the best way to win people over to your viewpoint. Even worse, you risk people tuning you out.

Maybe I'm just getting a sample bias because your most recent posts and comments have been on transmission licenses.

Hence the phrase "in the future". There's no way that Square doesn't see this obvious step. It's probably already in progress.

Also I'm guessing that what Square currently does already requires a money transmitter license, since transmitting money is exactly what they do.

Square does not currently require a license, and they have not yet applied for one in California.
Out of curiosity, where are you getting this info?

From a cursory look, I was under the impression that they would need a license in every state that they'd do business in.

It's all public information.

Square is exempt from the California Money Transmission Act per FC ยง 1805(d) (see http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&#3...), since it's actually JPMorgan Chase Bank, N.A. that is moving your money.

Square does not have a license.

http://www.dfi.ca.gov/directory/mt.asp

And Square has no plans to get one as of last month.

http://www.dfi.ca.gov/publications/summaries/2011/september....

Thanks!

Would it not be possible for them to partner in the same fashion to do direct debit?