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.
Money Transmitter Bond bond by the numbers
- US jurisdictions we track require a money transmitter bond bond
- 51 of 52US jurisdictions we track require a money transmitter bond bondSource: state statutes compiled in the Cornerstone bond cost index, data as of 2026-06-17. Money Transmitter Bond bond cost index
- statutory bond amounts across the 51 states that publish one
- $10,000 to $500,000statutory bond amounts across the 51 states that publish oneSource: state statutes compiled in the Cornerstone bond cost index, data as of 2026-06-17. Money Transmitter Bond bond cost index
- median statutory bond amount across those states
- $25,000median statutory bond amount across those statesSource: state statutes compiled in the Cornerstone bond cost index, data as of 2026-06-17. Money Transmitter Bond bond cost index
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 requirements by state
The figures below are the ones that actually differ from state to state. Everything else about this bond, who needs it, what underwriting looks at, and how it is filed, is the same everywhere and is covered above.
In every state that requires the bond, it renews annually alongside the underlying license.
| State | Bond amount | Minimum net worth | Renewal fee | Regulator |
|---|---|---|---|---|
| Alabama | $25,000 | $100,000 | $300 to $1,000 | Alabama State Banking Department |
| Alaska | $25,000 | $100,000 | $300 to $1,000 | Alaska Division of Banking & Securities |
| Arizona | $25,000 | $100,000 | $300 to $1,000 | Arizona Department of Financial Institutions |
| Arkansas | $25,000 | $100,000 | $300 to $1,000 | Arkansas Securities Department |
| California | $500,000 | $500,000 | $300 to $1,000 | California DFPI |
| Colorado | $25,000 | $100,000 | $300 to $1,000 | Colorado Division of Banking |
| Connecticut | $25,000 | $100,000 | $300 to $1,000 | Connecticut Department of Banking |
| Delaware | $25,000 | $100,000 | $300 to $1,000 | Delaware Office of the State Bank Commissioner |
| District of Columbia | $25,000 | $100,000 | $300 to $1,000 | DC Department of Insurance, Securities and Banking |
| Florida | $250,000 | $100,000 | $300 to $1,000 | Florida Office of Financial Regulation |
| Georgia | $50,000 | $100,000 | $300 to $1,000 | Georgia Department of Banking and Finance |
| Hawaii | $25,000 | $100,000 | $300 to $1,000 | Hawaii DCCA |
| Idaho | $25,000 | $100,000 | $300 to $1,000 | Idaho Department of Finance |
| Illinois | $100,000 | $100,000 | $300 to $1,000 | Illinois DFPR |
| Indiana | $25,000 | $100,000 | $300 to $1,000 | Indiana DFI |
| Iowa | $25,000 | $100,000 | $300 to $1,000 | Iowa Division of Banking |
| Kansas | $25,000 | $100,000 | $300 to $1,000 | Kansas OSBC |
| Kentucky | $25,000 | $100,000 | $300 to $1,000 | Kentucky DFI |
| Louisiana | $25,000 | $100,000 | $300 to $1,000 | Louisiana OFI |
| Maine | $25,000 | $100,000 | $300 to $1,000 | Maine Bureau of Financial Institutions |
| Maryland | $25,000 | $100,000 | $300 to $1,000 | Maryland DLLR |
| Massachusetts | $25,000 | $100,000 | $300 to $1,000 | Massachusetts Division of Banks |
| Michigan | $25,000 | $100,000 | $300 to $1,000 | Michigan DIFS |
| Minnesota | $25,000 | $100,000 | $300 to $1,000 | Minnesota Department of Commerce |
| Mississippi | $25,000 | $100,000 | $300 to $1,000 | Mississippi Department of Banking |
| Missouri | $25,000 | $100,000 | $300 to $1,000 | Missouri Division of Finance |
| Montana | Not required | Not published | Not published | Montana Division of Banking |
| Nebraska | $25,000 | $100,000 | $300 to $1,000 | Nebraska Department of Banking and Finance |
| Nevada | $25,000 | $100,000 | $300 to $1,000 | Nevada Financial Institutions Division |
| New Hampshire | $25,000 | $100,000 | $300 to $1,000 | New Hampshire Banking Department |
| New Jersey | $25,000 | $100,000 | $300 to $1,000 | New Jersey Department of Banking and Insurance |
| New Mexico | $25,000 | $100,000 | $300 to $1,000 | New Mexico Regulation and Licensing |
| New York | $500,000 | $500,000 | $1,000 | New York DFS |
| North Carolina | $25,000 | $100,000 | $300 to $1,000 | North Carolina Commissioner of Banks |
| North Dakota | $25,000 | $100,000 | $300 to $1,000 | North Dakota Department of Financial Institutions |
| Ohio | $25,000 | $100,000 | $300 to $1,000 | Ohio Division of Financial Institutions |
| Oklahoma | $25,000 | $100,000 | $300 to $1,000 | Oklahoma Department of Consumer Credit |
| Oregon | $25,000 | $100,000 | $300 to $1,000 | Oregon Division of Financial Regulation |
| Pennsylvania | $25,000 | $100,000 | $300 to $1,000 | Pennsylvania Department of Banking and Securities |
| Puerto Rico | $25,000 | $100,000 | $300 to $1,000 | Puerto Rico Division of Banking |
| Rhode Island | $25,000 | $100,000 | $300 to $1,000 | Rhode Island Division of Banking |
| South Carolina | $25,000 | $100,000 | $300 to $1,000 | South Carolina Board of Financial Institutions |
| South Dakota | $25,000 | $100,000 | $300 to $1,000 | South Dakota Division of Banking |
| Tennessee | $25,000 | $100,000 | $300 to $1,000 | Tennessee Department of Financial Institutions |
| Texas | $300,000 | $300,000 | $300 to $1,000 | Texas Department of Banking |
| Utah | $25,000 | $100,000 | $300 to $1,000 | Utah DFI |
| Vermont | $25,000 | $100,000 | $300 to $1,000 | Vermont DFR |
| Virginia | $25,000 | $100,000 | $300 to $1,000 | Virginia Bureau of Financial Institutions |
| Washington | $10,000 | $100,000 | $300 to $1,000 | Washington DFI |
| West Virginia | $25,000 | $100,000 | $300 to $1,000 | West Virginia Division of Financial Institutions |
| Wisconsin | $25,000 | $100,000 | $300 to $1,000 | Wisconsin Department of Financial Institutions |
| Wyoming | $25,000 | $100,000 | $300 to $1,000 | Wyoming Division of Banking |
State figures last verified August 3, 2026.
More additional bonds
The complete compliance picture
The financial services and lenders stack
Lenders, mortgage originators, and money services businesses carry three layers of compliance at once: the state license that lets them operate, the surety bond a regulator may require to hold the license, and the insurance program that covers the operation. Here is how the three fit together.
Reviewed by the Cornerstone Surety bond team. Last reviewed 2026-06-17. Last verified June 17, 2026.