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. In Virginia, the necessary license is referred to as Money Order Seller and Money Transmitter License and to obtain the license one must provide a Virginia Money Transmitter Bond. Any person or entity that engages in the business of selling money orders or providing money transmission services to any consumer residing in the Commonwealth of Virginia, whether or not the person has a location in the Commonwealth must obtain the license. While the license is a requirement of the Virginia Bureau of Financial Institutions, the license is processed through the Nationwide Multistate Licensing System (NMLS)
Activities Authorized Under the Money Order Seller and Money Transmitter License
This license authorizes the following activities:
- Electronic Money Transmitting
- Issuing traveler’s checks
- Selling traveler’s checks
- Issuing money orders
- Selling money orders
- Issuing and/or selling drafts
- Issuing prepaid access/stored value
- Selling prepaid access/stored value
Click here to apply for your Virginia Money Transmitter Bond.
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 or the government entity 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 the Virginia Money Transmitter Bond does not protect the business owner, it offers proof that your business handles clients’ money responsibly.
About the Money Order Seller and Money Transmitter Bond
In order to get your Money Order Seller and Money Transmitter license business license, you’ll need a Virginia Money Transmitter Bond.
- Required by: Commissioner of Financial Institutions of the Commonwealth
- Minimum bond amount: $25,0000
- Maximum bond amount: determined by the Commissioner.
- 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.)
- $1,000 non-refundable license application fee
- Net worth of at least $200,000 of applicant
- Yearly assessments
- Yearly renewal fees
- Audited financial statements the Commissioner may require
- Legal name and residential address of applicant
- Surety bond
All licensing fees are required by the obligee, not the surety company. Money transmitters in Virginia 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. For a complete lit of license requirements, visit the license check list offered by the NMLS.
How to obtain a Virginia Money Transmitter Bond
At Surety1.com we make it easy to obtain your surety bond. Our simple, 3 step process is:
- Complete our easy to navigate and secure online application. 1
- Review your free, no obligation quote from one of or surety bond professional agents, usually within 1 business day.
- Sign some paperwork and make payment (All major credit cards accepted)
Once these steps have been completed, the original surety bond will be shipped for an original signature. Once signed by the principal (licensee), the Virginia Money Transmitter Bond is uploaded to the NMLS.
1 – The bond application must be the exact name of the applicant for the Money Order Seller and Money Transmitter license
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. We also maintain an A+ rating from the Better Business Bureau.