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Square Fined $507K In Florida For Operating A Mobile Payment Service Without A Money Transmitter License

 

A little more state-specific financial regulatory hot water for Square, the hot mobile commerce startup: it has been fined $507,000 by Florida’s Office of Financial Regulation for operating a payment service without a money transmission license. This looks like the second time that a U.S. state financial regulator has gone after the company, after Square was served with a cease and desist order in Illinois in March 2013, also for failing to obtain a license before opening up for operations.According to the Florida payment order, the $507,000 fine covers over two years of operation, from February 2010 to November 2012. “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,” the order reads.

 

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