What is a Wisconsin Seller of Checks Bond?
The Wisconsin Department of Financial Institutions requires new license or renewal of license sellers of checks applicants to post a surety bond.
The Seller of Checks Bond guarantees that sellers of checks or money transmission professionals in the state comply with the provisions of the Seller of Checks Law in Chapter 217 of the Wisconsin Statutes.
The bond, while protecting clients from financial damages, also ensures that the seller of check/money transmitter will act by his or her duties in selling, issuing, and delivering checks in an ethical and financially responsible manner.
Under Wis. Stats. S. 217.02(09), a seller of checks describes any individual who, “as a service or for a fee or other consideration, engages in the business of selling and issuing checks or the receiving of money for transmission or the transmitting of money, or the transmitting of money to foreign countries.”
What are the bond conditions?
- The bond must be issued a Surety authorized to conduct business in the State of Wisconsin.
- The Obligee is the State Department of Financial Institutions.
- If the Principal (seller of check/money transmitter) is found to follow all lawful rules and regulations during the term of the bond, the obligation will be considered null and void; otherwise, it will remain in full force and effect.
- With a validated violation by the Principal, the Surety will pay the Department up to the penal sum of the bond. The Principal will have to reimburse the Surety with the amount that has been paid out.
- The bond remains continuous until cancellation. The Surety holds the right to cancel the bond and must give written notice must be sent to the Department of Financial Institutions at least 60 days before the effective cancellation date.
What is the bond amount?
The bond amount is $10,000 for the first location plus an additional $5,000 for each additional location/agent, but not exceeding $300,000.
The cost of the bond is the percentage (bond premium) of the total bond amount, which can typically range from 1%-5%. The cost will be based on several factors, such as your credit score, bond amount, and the number of locations. A surety underwriter will conduct an exhaustive review of your financial credentials to be able to issue a bond.
To determine your bond costs and requirements, please get your FREE quote HERE!
How can I obtain a Seller of Checks Bond?
To secure this type of bond, the seller of checks license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the seller of checks bond and send it to you!
Call us at 800-333-7800 now!