I have a business customer who offers cash advances to customers for a $30.00 fee. He also cashes checks and acts as an agent for Western Union. However, he has a contract with WU and he doesn't cash checks or do cash advances for over the threshold limit. Does charging the $30.00 fee though make him an MSB?
Help! THANKS!

Charging a fee has no bearing on whether the business is a MSB or not. An MSB is defined by the type & dollar amount of activity conducted. Refer to 31 CFR §103.11(uu) for the definition.

Thanks for such a quick response!

Also, if they are doing this as a VISA/MC merchant, charging a cash advance fee is in violation of their merchant agreement.

Basically he is accepting post dated checks and holds the check until that date. When that day arrives they bring him the cash and he returns the check to them. All for a $30.00 fee.

That makes him a pay-day lender. You want to review this ruling:

http://www.fincen.gov/fincenruling2002-2.pdf

Thanks RL, that's what I was looking for!

Some states (like CA) require you to register.

CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW
http://www.corp.ca.gov/fsd/fsdfaq.htm#cddtl