The California Bond of Check Seller is required by the Department of Business Oversight.
A check seller is defined as anyone who sells checks, money orders, or drafts to be used by others for the payment of obligations and the transfer of money. The checks are sold through a network of agents such as small markets and check cashing businesses.
Per the requirements in Section 12000 of the CA Check Sellers, Bill Payors and Proraters Law, check sellers must maintain a minimum net worth of $500,000 and file a $500,000 license bond, also known as a California Bond of Check Seller, with the CA Department of Business Oversight.
Note: Bill Payors and Proraters must maintain a net worth of $10,000 and file a $25,000 surety bond, also called a General License & Permit Surety Bond, which can also be obtained by applying through the link below.
For those licensees who use agents, the license requirements are considerably higher. In addition to the financial and bonding requirements, applicants must demonstrate that they have experience in this type of business, and that they do not have a criminal history or a history of noncompliance with regulatory requirements.
To apply for a license, you will need to fill out the license application, file your $500k California Bond of Check Seller, and remit a $200 application fee as well as a $50 investigation fee to the CA Department of Business Oversight.
This bond protects your clients from malpractice and damage, and gives clients peace of mind knowing their check seller has been backed by a third party surety insurance company. While this is a legal requirement, you can advertise as a Bonded Check Seller for positive marketing!
This bond also ensures that the check seller is following the rules, regulations and laws set forth by the state. Any agents or employees of the check seller must follow all laws and rules made by the the Commissioner of Business Oversight.
To btain a California Bond of Check Seller, all you need to do is take a few minutes to fill out our free online application! Within one business day one of our licensed agents will contact you with a no-obligation quote for the price to obtain your bond (the “premium”). Please note the premium will only be a small percentage of the bond amount. Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (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!