The California Bond of Check Seller is required by the Department of Business Oversight (DBO). 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.
What are the Requirements Become a Licensed Check Seller In California
To become a licensed check seller in California, you must:
- Be at least 18 years old.
- Be a resident of California or have a business location in California.
- Have a good moral character.
- Pass a background check.
- Pass a written examination.
- Obtain a surety bond.
- Pay a license fee.
To apply for a check seller license, you must submit an application to the California Department of Business Oversight (DBO). The application must include:
- A completed application form.
- A copy of your driver’s license or other government-issued photo identification.
- A copy of your Social Security card or Individual Taxpayer Identification Number (ITIN).
- A copy of your business license, if applicable.
- A copy of your California Bond of Check Seller.
- A cashier’s check or money order for the license fee.
You can obtain an application form and more information about the licensing process from the DBO website: https://dfpi.ca.gov/licensees-and-regulated-industries/.
Once you have submitted your application, the DBO will review it and conduct a background check. If your application is approved, you will be required to take and pass a written examination. The examination covers topics such as check cashing laws, regulations, and procedures. If you pass the examination, you will be issued a check seller license. The license is valid for one year and must be renewed annually.
What Does This Bond Do?
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. The bond does not protect the check seller, the surety bond is to protect the public.
How do I get a California Bond of Check Seller?
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the California Bond of Check Seller will be shipped to the bond principal (Licensee).
1- The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.