To obtain a money transmitter license in Pennsylvania, every licensee must provide a Pennsylvania Money Transmitter Bond. Every state requires a surety bond for money transmitters. 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. The bond does not protect the licensee, it is not insurance. The bond is in place as a method of prequalification for the license.
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 provide the most competitive rate of one or more of the 13 surety bond markets we represent.
Money Transmitter Bond
In order to get your money transmitter’s business license, you’ll need a bond.
- Required by: Pennsylvania Department of Banking and Securities
- Minimum bond amount: $1,000,000
- Maximum bond amount: $1,000,000
- Valid: Continuous
This bond type is continuous, which means it is in full force until it is cancelled. If the bond is cancelled, the principle must notify the obligee of the cancellation within 30 days before the effective date of the cancellation. This bond ensures the principle will comply with the laws stated in the Pennsylvania Money Transmitter Act, Chapter 19 of Title 10 of the Pennsylvania Code.
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.)
- Minimum net worth of $500,000
- $1,000, non-refundable licensing fee
- At least 5 years of business experience
- Surety bond
- Legal name and residential address of applicant
All licensing fees are required by the obligee, 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 Pennsylvania 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.
Learn more at PA.gov, and see a checklist for new money transmitter license applications from NMLS.
How do I obtain a Pennsylvania Money Transmitter Bond?
At surety1.com we make it easy to apply for this, and all your surety bond needs:
- Complete our easy to navigate and secure, online application 1
- One of our surety bond agents will be in touch with you to complete the process, usually within one business day. For the Pennsylvania required bond amount, additional financial disclosures, similar to what needs to be provided to the State, will be required by the surety to obtain the bond.
- Review your free, no obligation quote.
- Sign some paperwork and make payment (all major credit cards accepted).
After completing these steps, your Pennsylvania Money Transmitter Bond will be shipped to you for the required signature. Once signed, upload the bond in NMLS under Surety Bond in the
Document Uploads section of the Company Form (MU1).
1. The name on the bond application must match exactly the full legal name of the applicant for a money transmitter license, including any other trade names.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau.