Pennsylvania Money Transmitter Bond

If you want to operate as a money transmitter in the state, you have to obtain a Pennsylvania money transmitter license. The procedure is handled via the Nationwide Multistate Licensing System and Registry (NMLS), but the licensing body is the Department of Banking and Securities. The required bond amount is $1,000,000, but the Department may deem necessary in some cases to increase it. You need to use the official bond form. The bond ensures you will follow the rules set in the Pennsylvania Money Transmitter Act.

You are required to obtain a $1,000,000 surety bond in order to get licensed as a Pennsylvania money transmitter. This is the required bond amount, which is not the same as the bond premium that you have to pay. The actual bond price is a fraction of this amount. For applicants with stable finances, the premium is usually between 1% and 5%.

The exact surety bond cost depends on a number of factors that your surety needs to examine. One of the most important ones is the business owner’s personal credit score. You will also have to provide your audited business financials, as the bond amount is quite substantial. In some cases you may need to showcase also your personal financial statement or cash verification. For money transmitters, the type of currency you’re working with may also have importance in the bond cost formation.

Bad credit doesn’t necessarily mean you cannot get bonded, but it is a strong impediment. If you can demonstrate stable business and personal financial statements, it may still be possible to obtain the bond you need. For a $1,000,000 bond, however, audited business financials will be the most important factor in determining the bonding decision.

Would you like to learn the nitty-gritty details of how bonding works? Make sure to consult our How to Get Bonded page, where you can find all the facts you need to know.

For further questions, we’re here to assist you. Just call us at (877) 514-5146 to get in touch with Lance Surety Bonds’ experts.

Getting bonded is different from obtaining insurance. Your money transmitter bond does not protect your business but rather safeguards the interests of your customers and the state. In case you engage in fraud or misuse that leads to negative consequences for a party, they may bring a claim against your bond.

The maximum penal sum that claimants can seek is the bond amount you’ve posted, which is $1,000,000 in this case. The surety that has backed you may cover the costa at first, but you have to reimburse it fully afterwards. This makes bond claims a serious financial threat for your business, so it’s best to avoid them altogether.