What is a New Jersey Money Transmitter Bond?
A quick guide to the money transmitter surety bond in New Jersey!
Before a money transmitter can do the following, he or she must first obtain a license and a surety bond:
- Issue or sell payment instruments
- Receive money for transmission within the United States or outside of the country through electronic transfer, facsimile, wire, or payment instrument
- Receive money for the payment of bills
Aside from ensuring a fair and honest performance of obligations, the surety bond will also serve as financial security in the event of misconduct committed by the money transmitter.
This requirement is in pursuance of the New Jersey Money Transmitters Act (N.J.S.A. 17:15C-1 et seq.).
What is the Money Transmitter Bond amount?
$100,000 – minimum bond amount
$1,000,000 – maximum bond amount
Bond amount for persons that exclusively engage in the business of a foreign money transmitter:
Annual Volume of BusinessBond Amount
Up to and including $500,000 $25,000
$500,000 – $1,000,000 $30,000
$1,000,000 – $2,000,000 $35,000
$2,000,000 – $3,000,000 $40,000
$3,000,000 – $4,000,000 $45,000
4,000,000 – $5,000,000 $50,000
$5,000,000 – $6,000,000 $55,000
$6,000,000 – $7,000,000 $60,000
$7,000,000 – $8,000,000 $65,000
$8,000,000 – $9,000,000 $70,000
$9,000,000 – $10,000,000 $75,000
$10,000,000 – $11,000,000 $80,000
$11,000,000 – $12,000,000 $85,000
$12,000,000 – $13,000,000 $90,000
$13,000,000 – $14,000,000 $95,000
$14,000,000 – $15,000,000 $100,000
If you have an excellent credit score, you will be eligible to pay for a low bond premium or just 1% of the bond amount!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE
How can I obtain a Money Transmitter Bond?
By following the simple steps below!
STEP 1: Apply for the bond
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
We will ask you for a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!
What are the surety bond conditions?
- The Surety who will issue the bond should be authorized to do business in the State of New Jersey
- The surety bond should be made payable to the State of New Jersey
- The licensed money transmitter should abide by the provisions of the New Jersey Money Transmitters Act (N.J.S.A. 17:15C-1 et seq.), as well as the rules and regulations of the Department of Banking and Insurance of the State of New Jersey
- If the licensed money transmitter commits a valid violation, the Obligee will be eligible to file a claim against the surety bond for the benefit of the aggrieved party
Ready to apply for your surety bond? START HERE!