Square Pays $507K Fine for Operating without Proper License in Florida
Mobile payments company Square has agreed to pay a fine in the state of Florida for operating without the proper licensing.
Square entered a payment of $507,000 to Florida’s Office of Financial Regulation on July 24th, after the Office found that they had been operating without a money transmitter license. Under Florida law, any company that offers payment or processing services must be licensed with the body.
It appears that Square agreed to pay the fine, but didn’t admit to any wrongdoing.
“Applicant neither admits not denies, but consents to the Office’s finding that Applicant engaged in business as a money transmitter (as that term is defined in Section 560.103(23), Florida Statutes) in the State of Florida without first obtaining a license…Specifically, the Office finds that Applicant’s existing payment processing services (including Square Register) and stored value/prepaid access card services required a license under Florida law,” reads an official document.
The fine covers Square’s operations in the state from February 2010, to November 2012. The documents show that Square did apply for a license in November, one that has been granted upon Square’s payment of the fine.
“We worked with Florida to resolve our application and receive our license to operate as a money transmitter in the state,” said Square spokesman Aaron Zamost. “We look forward to continuing to help merchants across Florida grow their business with Square.”
This marks the second time Square has found itself in trouble over operating without the proper licenses. Back in March, the company was hit with a cease and desist order in Illinois for running afoul of the Transmitters of Money Act, which requires companies to obtain a license before “selling or issuing payment instruments, transmitting money, or exchanging, for compensation, payment instruments or money.”[South Florida Business Journal via TechCrunch]