Money Transmitter InformationA money transmitter surety bond is a type of license and permit bond which money transmitters need in order to get licensed in their state. Almost all states, with few exceptions, require such bonds upon licensing. The bond’s purpose and function is to protect the public and the state from theft and fraud by dishonest money transmitters. An example of this would be not transferring a person’s funds intentionally. In other words, the money transmitter bond guarantees that such businesses and individuals will comply with all state laws and industry regulations concerning money transmitters. It guarantees that they will adhere to best business practices and conduct business honestly. It also guarantees that if a money transmitter is found to be in breach of a law or regulation, a claim can be filed against their bond and obligees can be compensated for losses or damages. This bond is applicable and necessary for all businesses that offer some form of payment services that include transmitting money from one location to another. This includes, among others, online merchants, wire transfer companies, and even money lenders. What type of companies need to obtain such a bond in any given state is subject to state laws and regulations. If you have any doubts whether this bond is relevant for you, consult your local authorities. Because of the nature of the industry, money transmitter bonds are usually considered a risk. Due to the danger of theft and fraud, rates for these bonds can be higher than for most. Despite this risk, the actual bond rate can vary greatly, depending on the company doing the bonding and the applicant. In order to get the best rate, an applicant should pick a knowledgeable agent with a good understanding of the market. Through our longstanding professional relationships, All Commercial Surety has the ability to place this bond at a savings to you. We are able to find the lowest rates on money transmitter bonds in all states.
Three party agreement
Surety Bond Definition: The definition of a surety bond is as follows: A surety bond is a binding agreement between three parties. This agreement sets forth a financial guarantee by one party ( “surety” ) to another party ( “obligee” ) that a third party ( “principal” ) will fulfill required obligations to the obligee, and that state, federal, and local laws and applicable regulations will be adhered to. Let’s examine each of the three parties.Learn more about surety bonds
Bad Credit – Fast Approvals – Lowest Rates Available.
- Credit below 650 and/or have blemishes on credit report.
- Average cost is 5-15% of the bond amount.
- Available for all commercial bonds.
Why does credit matter? Applying for a surety bond is similar to applying for a loan. You are asking a surety company to back you financially. Reviewing credit is the best method for the surety to understand their risk. All sureties review credit as a view only and should have no effect on your credit score. While it is true that bad credit makes it harder to obtain a competitive quote, we are committed to making sure all of our customers have access to the best possible rates. While we can’t guarantee that we can provide a bond for the most extreme bad credit situations, we strive to make sure no stone is unturned! In other words, if you are insurable, we will get it written. Contact us today and let us put together an online quote for you that will exceed your expectations.