If a state banking or financial regulator told you to get a money transmitter bond, send us the requirement. We’ll identify the bond, check the amount and form, and tell you what the surety needs for a quote.
A money transmitter bond is a surety bond that states require as part of licensing money transmitters and certain other money services businesses. It guarantees that the licensee will meet its obligations under the state’s money transmission law.
Each state sets its own requirement. Some states set a fixed amount, and others tie the amount to the licensee’s transmission activity. Some also have net worth or other financial requirements.
Use the amount in your state’s licensing paperwork. Bond amounts for money transmitters can be large, so underwriting is often more detailed than for a simple license bond.
Because the bond amounts can be large, a surety may ask for company financial statements, ownership information, and a description of your business and how funds move.
Send what you have early. A complete file helps the surety give you a clear answer.
No. The bond is part of state licensing. Federal registration and compliance requirements are separate, and a licensing attorney or compliance professional can tell you which apply to your business.
If you are unsure what the state wants, send us the paperwork and we will start with the bond.
You normally pay a premium for the bond, not the full bond amount.
Price usually depends on the bond amount, the business’s financial strength, ownership, experience, and the surety company’s guidelines. Larger bonds usually need more underwriting before a price can be given.
Often, yes, along with financial information. Credit and financial strength can affect both approval and price.
If your credit or financials are not strong, tell us up front. Surety companies do not all underwrite the same way.
Send us the state requirement and basic business information. The most useful items are:
It depends on the bond. Smaller money transmitter bonds with a clear file can move more quickly. Larger bonds, newer businesses, and files that need financial statements can take longer.
If you have a licensing deadline, tell us when you apply.
If this is not the bond you were asked for, these pages may help.
Yes. States differ on whether a bond is required, the amount, how the amount is calculated, and the form. Do not assume a bond for one state satisfies another state’s requirement.
Tell us what you’re applying for or send us the paperwork from the state regulator. We’ll take it from there.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208