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 Wisconsin, Money Transmitter Services fall within the definition of a seller of checks. To obtain a seller of checks license, one must provide a Wisconsin Seller of Checks Bond. In Wisconsin, a seller of checks means a person who, as a service or for a fee or other consideration, engages in the business of selling and issuing checks, or the receiving of money for transmission or the transmitting of money or the transmitting of money to foreign countries. Specifically, the Seller of Checks License authorizes the following activities in the state:
- Electronic Money Transmitting
- Issuing and/or selling travelers checks
- Issuing and/or selling money orders o Issuing and/or selling drafts
- Bill Paying
- Issuing and/or selling prepaid access
- Other Money Services
While the license and Wisconsin Seller of Checks Bond is a requirement of the Wisconsin Department of Financial Institutions, the license administration and license application is processed by the Nationwide Mortgage Licensing System (NMLS).
See a checklist for new Seller of Checks license applications from NMLS.
Multi-State Money Transmitter Bonds
Multistate Money Services Businesses Licensing Agreement Program (MMLA), which creates a more efficient money service business licensing process among state regulators. If your company is seeking money transmitter licensure in more than five (5) states, participation in the MMLA may be right for you. See the Multistate MSB Licensing Agreement Program page of the NMLS Resource Center for more information. At Surety1.com, one can apply for money transmitter bonds in all states with a single application.
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. If a claim is made on the surety bond and the surety company pays that claim, the surety will seek restitution from the bond principal (licensee). Visit our Three Parties of A surety Bod Blog for more information.
Seller of Checks Surety Bond
In order to get your money transmitter’s business license, you’ll need a bond.
- Required by: Wisconsin Department of Financial Institutions
- Minimum bond amount: $10,000 for one location
- $5,000 for each additional location
- Maximum bond amount: $300,000
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 60 days before the effective date of the cancellation. This bond guarantees the obligee will comply with the Seller of Checks Law in Chapter 217 of the Wisconsin Statutes along with other Wisconsin state laws. The bond will be revoked if the principle acts against the bond.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
How to Obtain a Wisconsin Seller of Checks Bond
At surety1.com we make it easy to obtain this surety bond. Our simple 3 step process is:
- Complete our easy to navigate and secure online application.1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the Wisconsin Seller of Checks Bond will be shipped to the principal (licensee). After the surety bond is signed by the principal, it must be shipped to:
Wisconsin Department of Financial Institutions Division of Banking
North Tower 4822 Madison Yards Way
Madison, WI 53705
1 – The name of the applicant on the surety bond application must match exactly the full legal business name of applicant, including any other trade names, for the 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.