To obtain a money transmitter license, every state requires a surety bond. Depending on your state, this license may be called money remitter, money services business, check casher, or sales of check license.
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.
The cost of the bond, the “premium,” depends largely on the bond amount and the applicant’s financial status. The state requiring the bond determines the amount. At Surety 1, we will find you the lowest quote for your bond, starting at only 1.5% of the bond amount.
In order to get your money transmitter’s business license, you’ll need a bond.
The Money Transmitter Division will determine your bond amount. The premium, the cost you pay for the bond, starts 1.5% and goes up depending on your credit.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
These are additional details about the licensing process that you should be aware of. (Only the bond is handled at Surety1, but this information will help you get your license.)
First, you will need to have a pre-filing meeting with the Money Transmitter Division staff. The Money Transmitter Division strongly recommends this meeting so you are well prepared to apply and meet all the requirements to become a money transmitter.
The filing fee is $5,000 for a new license and is NOT refundable, even if not accepted. The meeting will help assure your application will be accepted.
All licensing fees are required by the obligee, not the surety company.