A money transmitter bond is a part of money transmitting licensing requirements. Also known as a surety bond or a money services business bond,it is a type of guarantee that you, a money transmitter, will offer honest and professional money transfer services. The bond also guarantees that you will comply with the state rules and regulations and will not misuse the funds.
This bond serves as an extra security layer for your customers. In case you fail to honor your promise of accurate and reliable funds transfer, this bond will compensate and reimburse the affected party.
A bond is a three party agreement, which includes:
- Principal: The money transmitter
- Obligee: The state which requires the bond
- Surety: The company issuing the bond
To learn more about money transmitter licensing requirements, click here.