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.

Why Do I Need This 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.

How Much Will the Bond Cost?

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.

 

Money Transmitter Bond

In order to get your money transmitter’s business license, you’ll need a bond.

This bond guarantees that the money transmitter will follow Title 28 Chapter 4 of the Indiana Code along with other state laws and regulations.

• Required by: Indiana Department of Financial Institutions
• Minimum bond amount: $200,000
• Maximum bond amount: Varies
• Valid: 1 year-renewable

The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.

 Money Transmitter License

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.)

• A $1,000 application fee is required by the state of Indiana along with supporting documents.
• A mandatory investigation by the state of Indiana will also be conducted prior to licensing.
• The state of Indiana charges $1,000 for the investigation which is non-refundable.
• The applicant must obtain a minimum net worth of $100,00 in order to apply for a license.

In order to achieve a business license, Indiana requires this information on the application:

1. Applicant’s legal name and residential address
2. Business location
3. History of business activities, description of current business activities, and planned business activities
4. Surety bond

Licenses can be renewed with a fee of $750 for the principle location along with a $10 fee for each additional business location. All these fees are charged by the state, not the surety company.

The license application can be filled out using an electronic system referred to as  NMLS. Although, for businesses that are not conducting multi-state businesses or do not want to use the electronic application system can also have access to other application forms.

Money transmitters in Indiana must also register as a money services business (MSB) with the Federal Crimes Enforcement Network (FinCEN). The registration process must be completed by the Bank Secretary Act (BSA) e-filing system.

See a checklist for new money transmitter license applications from NMLS.