An Alabama Money Transmitter Bond is required by the Alabama Monetary Transmission Act in order to obtain a license as a money transmitter. Apply on our website for a free, no-obligation quote from our licensed agents!
What are the requirements to get an Alabama Money Transmitter License?
The Alabama Money Transmissions Act defines money transmission as selling or issuing payment instruments, stored value, or receiving money or monetary value for transmission. No person may engage in this type of business unless they are licensed.
To apply for a license, the following requirements must be submitted to the Alabama Securities Commission:
- A Completed application form (Form MT)
- A $500 filing fee as well as a $500 license fee
- A surety bond, more formally known as an Alabama Money Transmitter Bond (form USB) issued by a surety licensed in the state.
- Note: Surety1 is licensed in all 50 states and represents over a dozen “A” rated markets licensed in Alabama! Read below for more information about obtaining the bond through Surety1.
For further filing instructions, please visit the Alabama Securities Commission website.
Why Do I Need an Alabama Money Transmitter Bond?
A surety bond is made to protect the public. In basic terms, it guarantees your business will adhere to all laws and requirements in your industry. In the event your business conducts unlawful acts, a consumer of your services may file a claim on the bond.
Nearly any company that offers payment services requires a money transmitter bond. Due to a history of fraudulence and inaccurate money transmissions, state agencies now require this bond to protect consumers. While this bond does not protect the business owner, it offers proof that your business
handles clients’ money responsibly.
What is the bond amount?
The Alabama Money Transmitter bond is going to be either $100,000 or the daily outstanding obligations for money received for transmission in Alabama plus 50% of the average daily outstanding payment instrument and stored value obligations in Alabama, whichever is greater.
The Commission may also increase the amount of the security required to a maximum of five million dollars ($5,000,000) if the financial condition of a licensee so requires, as evidenced by reduction of net worth, financial losses, or other relevant criteria.
How much do I pay for the Alabama Money Transmitter Bond and where can I get it?
The cost of the bond, the “premium,” depends largely on the applicant’s financial status. At Surety 1, we work with over a dozen “A” rated markets to ensure we find you the lowest possible rate for your bond. We can issue this bond starting at only 1.5% of the bond amount!
To apply, all you need to do is submit our free online application. One of our li
censed agents will contact you within one business day with a firm, no-obligation quote for the premium. If you choose to move forward after hearing the quote, we will have you sign any necessary paperwork and remit the premium payment. Once the payment is processed we will ship your Alabama Money Transmitter Bond to you via USPS Priority Mail, with overnight shipping options also available!
The surety bonding experts at Surety1 are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau.