What are Money Transmitter Surety Bonds?
Money Transmitter Surety Bonds ensure that the money transmitter (principal) handles the funds of their clients in an honest and professional manner in accordance with all applicable laws and regulations. They protect clients against any potential losses caused by the fraud, misuse, withholding or theft of funds by the money transmitter.
These bonds provide compensation to anyone who has suffered damages due to the misconduct committed by the licensed money transmitter. If a harmed party files a claim against the bond and it is found to be valid, the surety company will pay out up to the penal sum of the bond to resolve the claim. Any monies paid out by the surety, including attorney’s fees, must be reimbursed by the principal.
Who needs a Money Transmitter Bond?
Money Transmitter Surety Bonds are required for businesses that engage in the handling of funds between multiple parties, both nationally and internationally. These funds can be transmitted electronically via wire transfers, as well as through payment mediums such as traveler’s checks.
Businesses that are typically required to post a Money Transmitter Surety Bond are:
- Wire transfer companies
- Online retailers who accept credit card payments through their website or have a mobile application that allows peer-to-peer money transfers.
Money Transmitter Surety Bonds may also be called:
- Money Remitter Bonds
- Money Services Business Bonds
- Check Casher Bonds
What amounts are Money Transmitter Bonds written for?
The penalty amount for this type of bond will vary greatly from state to state. The following are some of the more popular Money Transmitter Surety Bonds that Pacific Surety offers:
Please contact your local authority for specific information about Money Transmitter Surety Bond requirements in your state.
How much does a Money Transmitter Surety Bond cost?
The price your pay for a Money Transmitter Surety Bonds will vary. Your premium will be based on several factors:
- The state requiring the bond
- Amount of the bond
- Percentage of money transfer sales
- Personal credit for all applicants
Individuals with good credit can expect to pay 1%-5% of the bond amount. This means qualified applicants could pay as little as $250 annually for a $25,000 bond. To find out how much your Money Transmitter Surety Bond is going to cost, please complete our online application for your free, no obligation price quote.
What are the licensing requirements for Money Transmitters?
Licensing requirements will vary and are set by the state that is issuing the license. The following are some typical requirements that most states will need to approve your Money Transmitter application:
- Name and business address
- Taxpayer identification number or social security number
- Payment of all applicable fees
- Financial Information (business financials, personal financials, etc.)
- Criminal background check and or fingerprint card
Please consult your local authority for a complete list of requirements needed for the state you are applying in.
Can I get a Money Transmitter Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Money Transmitter Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants regardless of how bad their credit is, and our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
Can the premium for Money Transmitter Surety Bonds be financed?
Yes! Pacific Surety has an industry-leading premium finance program that gives our clients the ability to purchase a bond when the upfront costs might be prohibitive to them. Applicants who choose this option will pay a percentage of their premium as a down payment and the balance of the premium will be paid in 4 monthly installments. Please contact our staff for additional information regarding our finance program and if the bond you need qualifies for financing.
How are Money Transmitter Surety Bonds purchased?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.