Money Transmitter Bonds
What is a Money Transmitter Bond?
A Money Transmitter Bond is required for businesses engaged in the transmission of funds between unrelated consumers or businesses. Transmission methods typically include wire transfers, electronic bank transfers, checks, or other check payment instruments. The surety bond protects customers in the event the money transmitter mishandles funds or commits fraudulent or illegal acts. These surety bonds are also be referred to as Money Services Bonds, Cashier of Checks Bonds, Sale of Checks Bonds, or Electronic Money Transfer Bonds.
Are Money Transmitter Bonds Called Anything Else?
Yes, Money Transmitter Bonds sometimes go by different names in different places. Here are some other names you may see used:
- Connecticut - Money Transmission Licensee Bond
- Florida - Money Services Business Bond
- Georgia - Money Transmitter or Check Seller Bond
- Iowa - Money Services or Transmitter Bond
- Louisiana - Sale of Checks / Money Transmitter Bond
- Texas - Money Services or Transmitter Bond
- Virginia - Money Order Sales and Money Transmission Bond
- Washington - Money Transmitter / Services Business Bond