What is a Paymaster?
When dealing in commission payments amounting to very large sums of money, banks require that the account holder has an established relationship with them and the funds are deposited and disbursed from a safe, verifiable source. Also, for safety and security purposes, it is preferable to place the money with a neutral third party for receipt and disbursement. For these reasons, it is usually a requirement in these transactions that a Paymaster be named to handle all incoming and outgoing funds. A Paymaster is typically a neutral third party (not directly involved with the transaction) who handles the incoming commissions, and then disburses the funds accordingly. In return for his services the Paymaster charges a fee, which is paid directly to him out of the commission proceeds prior to disbursement (see our Fee Schedule for details). Can anyone be a Paymaster? Is there a licensing requirement? In the United States, there is no licensing requirement for being a Paymaster. However, most
