Becoming a MoneyGram agent can add to your company’s profitability, as you’ll earn money every time a customer uses the service to receive or transfer funds. To accomplish this, you’ll have to provide information that indicates you’re going to be profitable enough for MoneyGram to work with and that you’re not a risk to add to its recent fraud woes.
The first step in becoming a MoneyGram agent is to contact the company with your request. There’s a form you can fill out on the MoneyGram website at moneygram.com, or you can call 1-800-328-5678, ext. 3300. Provide your name, the name and type of business you have, and what services you’re specifically interested in. MoneyGram offers money transfers, money orders, utility bill payments and prepaid cards. MoneyGram also asks what company you use for those services now – Western Union or another provider – or if this will be a new line of business for you.
Should your application make it past this initial screening, you’ll meet with a MoneyGram representative. MoneyGram vets applicants carefully and has spent renewed energies in background checks following its connection with lottery scams from 2003 to 2009, in which some of its agents were used to commit wire fraud. As a result, you’ll need to pass both a personal and business screening. While the needs vary from location to location, expect to provide financial records and other documentation that attest to the stability of the business and its ability to stay on a solid financial footing. It will also check for red flags like criminal records or tax liens against the business.
Once you get approved, you’ll negotiate and sign your contract. MoneyGram provides not only the brand name, but the technical support, training and promotional materials. In exchange for that, you’ll pay the company a percentage of what you charge for each service. You and your staff also will undergo training to make sure you understand the process and can use the systems correctly, and so you can recognize attempts at fraudulent transactions before allowing them to go through.
As a MoneyGram agent, you’re an independent contractor. The company can sever the relationship as the result of illegal activity. For example, the scams that took place occurred in part because agents knowingly entered false personal information for those picking up funds at their locations, allowing criminals to pick up the funds without identifying themselves properly. If this becomes a problem in your location, you're unlikely to remain a MoneyGram agent for long.