What is a money transmitter bond bond?

The money transmitter bond is the surety bond posted as a condition of an MSB or money transmitter license. It is the bond that backstops a transmitter's obligations to consumers and the state. It is NOT the same as the money transmitter license itself, which Cornerstone Licensing handles on the Licensing side.

Money Transmitter Bond (Bond, not License) | Cornerstone Surety

Overview

The money transmitter bond is the surety bond posted as a condition of a money transmitter or money services business license. It backstops the transmitter's obligations to consumers and the state, giving them a recovery path if the company mishandles customer funds or violates state money transmission law. It is the bond that accompanies the license, not the license itself, which Cornerstone Licensing handles separately.

State regulators set the required amount, and many states scale it with transmission volume, so the figure ranges widely. Because the bond guarantees compliance and the safe handling of customer money, underwriting reviews company financials, net worth, and owner credit.

It is a surety bond that protects consumers and the state. The transmitter reimburses the surety for any paid claim under the indemnity agreement.

Who needs this bond

Licensed money transmitters and prospective applicants in every state that conditions the license on a posted surety bond (most do).

Typical amount and term

Bond amount set by state, commonly 50,000 to 7,000,000 dollars. Many states scale the bond by transmission volume. Premium 1 to 3 percent of bond amount for well-qualified principals.

What this bond costs

Your premium is a small percentage of the bond amount, set by underwriting. The biggest drivers:

The state-set bond amount (often scaled to transmission volume)
The company's financial statements and net worth
The owners' credit
Transmission volume by state

Scenario	Bond amount	Estimated premium
Well-qualified principal	$50,000 bond	around 1 to 2 percent per year
Mid-size transmitter	$250,000 bond	around 1.5 to 3 percent per year
High-volume, tiered amount	$1,000,000 bond	rate declines at higher amounts for strong files

Figures are illustrative premium ranges, not quotes or statutory amounts. Your rate depends on the bond amount your obligee requires and your underwriting profile.

What you will need

NMLS or state license number
Last 12 months of transmission volume by state
Company financials and owner credit

How to apply

Send license details and transmission volume
Receive a per-state quote with surge brackets
Bond signed and filed with the state regulator

How a surety bond differs from insurance

The money transmitter bond is a surety guarantee that protects consumers and the state, not the transmitter. It is separate from the money transmitter license itself, and it is not insurance on the company's own losses. The bond backstops compliant handling of customer funds.

Frequently asked questions

Is the bond the same as a money transmitter license?

No. The bond is posted with the license as a condition of it. The license itself is a separate approval, which Cornerstone Licensing handles on the licensing side.

How is the bond amount set?

By each state's regulator, frequently scaled to transmission volume, so the required amount varies widely from state to state.

What does the premium depend on?

Mainly the bond amount, the company's financial strength and net worth, and owner credit. Strong files earn lower rates.

Do I need a bond in every state?

Yes. Most states that license money transmitters require a bond, each at the amount that state sets.

Money Transmitter Bond bond by state

State-specific money transmitter bond bond amounts, regulators, and requirements.

More additional bonds

Reviewed by the Cornerstone Surety bond team. Last reviewed 2026-06-17.