Money Transmitter Information
A 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.
