Money Transmitter Bonds
Money transmitters must often post a surety bond to meet state licensing requirements. This bond ensures compliance with laws regulating the transfer of funds, including checks, wires, and electronic payments.
We offer the following Money Transmitter Bonds:
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What is a money transmitter bond?
Money transmitters are involved in the process of selling, issuing, or delivering payment instruments within the United States or abroad. This includes checks, money orders, wires, and electronic payment transmissions.
In most states, money transmitters must be licensed to legally offer their services. A common licensing requirement is a surety bond in an amount determined by the state. The intent of the money transmitter surety bond is to ensure that the principal complies with the legal requirements as determined by their state. If the principal violates these requirements, claims can be filed against the bond.
How much does a money transmitter bond cost?
Generally speaking with surety bonds of any sort, the annual premium for a money transmitter policy varies depending on a variety of factors, including but not limited to:
- The bond amount required by the licensing agency
- Your business finances and history
- The principal owner’s personal credit rating
Required bond value as a licensing condition varies from state to state. Most often, the required bond value is calculated based on a percentage of the licensee’s total transaction volume of the most recent year.
Your bond premium – the annual amount you pay for the bond – is based on the financial history of your business and your personal credit rating.
NNA Surety Bonds currently writes policies for money transmitters in all states where a money transmitter bond is required for licensing. With a strong business history and good credit, your premium may start at 1.5% of the bond amount. See the table below for examples.
Cost of Money Transmitter Surety Bonds
| State | Bond Amount | Cost* (Annual Premium) |
|---|---|---|
| Alabama | $100,000 – $5,000,000 | $1,500 – $75,000 |
| Alaska | $25,000 – $150,000 | $375 – $2,250 |
| Arizona | $25,000 – $500,000 | $375 – $7,500 |
| Arkansas | $50,000 – $300,000 | $750 – $4,500 |