California Money Transmitter Bond

California Money Transmitter Bond: Requirements & How to Get Licensed

To operate legally as a money transmitter in California, you must obtain a California Money Transmitter Bond. This is a type of surety bond required by the California Department of Financial Protection and Innovation (DFPI). This bond guarantees compliance with state laws and protects consumers from financial misconduct.

At Surety1, we specialize in helping money service businesses (MSBs) secure the lowest rates on their surety bonds, often 1% to 3% of the bond amount. Apply online today for a fast, free quote.

What Is a California Money Transmitter Bond?

A Money Transmitter Bond is a legal requirement for businesses that:

• Transmit money domestically or internationally
• Issue/sell payment instruments (money orders, traveler’s checks)
• Offer stored value products (digital wallets, prepaid cards)

Key Details:

• Bond Amount: $250,000 to $7,000,000 (set by DFPI)
• Issued Through: Nationwide Mortgage Licensing System (NMLS)
• Who Needs It? Check cashers, remittance providers, crypto businesses*

(*Note: Crypto money transmitters face strict bonding challenges, learn why below.)

How to Get a California Money Transmitter Bond in 4 Steps

1. Complete Our Online Application

Start with our secure, 5-minute application. Ensure your business name exactly matches your legal entity.

2. Receive a Free Quote (Usually in 1 to 3 business days)

Our surety experts shop multiple markets to find you the best terms at the lowest rate (typically 1%-3% of bond amount).

3. Sign & Pay for Your Bond

Once approved, sign some paperwork and submit payment.

4. Upload Bond to NMLS

We’ll ship your bond for signing. Upload it under “Surety Bond” in the NMLS Document Uploads (MU1 Form).

APPLY NOW – FAST & EASY

California Money Transmitter License Requirements

Before applying for your bond, you must:
✅ Attend a pre-filing meeting with DFPI (strongly recommended)
✅ Pay the $5,000 non-refundable application fee
✅ Submit financial statements, compliance policies, and background checks

The bond is only required after your application is conditionally approved.

FAQs: California Money Transmitter Bonds

Q. Why Do I Need This Bond? 
A. It’s a legal requirement to protect consumers and ensure ethical business practices.

Q. How Much Does It Cost?
A. You pay a small percentage (1%-3%) of the bond amount. Example:

$500,000 bond * 1% = $500.00 annual premium.

Q. Can Crypto Businesses Get Bonded?
A. Most surety companies deny crypto bonds due to:

• Regulatory uncertainty
• High fraud & compliance risks
• Volatility & claim likelihood

Some sureties may write the bond with extremely strong financials or require full collateral.

Q. What Happens If a Claim Is Filed?
A. The surety pays the claim, but you must repay them. Maintaining compliance avoids claims.

Q. How Do I Renew My Bond?
Bonds must be renewed annually. We’ll send reminders before expiration.

Why Choose Surety1 for Your Money Transmitter Bond?

• Competitive rates (1%-3%)
• Fast approvals (often same-day)
• Expert guidance on state requirements

Get Your Free Bond Quote Now

Need a Money Transmitter Bond in Another State?

Check our State-by-State Guide to Money Transmitter Bonds for licensing and bonding rules nationwide.

About Surety1

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.

Contact Surety1 for assistance.

Legal Disclaimer

This content is for informational purposes only and does not constitute legal or financial advice. Consult the DFPI or a compliance attorney for licensing requirements.