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.
- Required by: South Carolina Office of the Attorney General
- Minimum bond amount: $50,000
- Maximum bond amount: Varies
- Valid: 1 year
An additional bond amount of $10,000 is required by the obligee for each additional location. If the license is no longer being used, the bond must cover claims for at least 5 years.
The South Carolina Anti-Money Laundering Act requires money transmitters to be licensed and bonded.
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.)
- Non-refundable application fee of $1,500
- $750 licensing fee
- $750 license renewal fee
- surety bond
- letter of credit
- $250,000 net worth
- description of the type of credit that will be used
- list of authorized delegates
- list of criminal convictions from past 10 years
- legal name and residential address of applicant
- description of previous money services offered
- name and address of bank(s) used for storing payments
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 South Carolina 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.
How to Get Your South Carolina Money Transmitter Bond
- Complete an online application. It’s free and no-obligation.
- One of our surety experts will contact you with a firm quote and an agreement to sign.
- Provide payment and your signed agreement, and then you will receive your Surety Bond!
If you have any questions, please call us at 877-654-2327.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.