New Hampshire Money Transmitter Bonds Explained
If you want to launch a New Hampshire money transmitting business, you have to obtain a license in the state. You need to get a money transmitter bond as a part of this process.
The purpose of the bond requirement is to safeguard the interests of the state and of your customers. It serves as a protection mechanism against cases in which a licensed money transmitter engages in illegal activities.
The money transmitter bond functions as a three-party contract. Your business is the principal who has to get bonded. The New Hampshire Banking Department is the obligee that requires it, and the surety is the bond provider.
Questions about Money Transmitter Bonds in New Hampshire
When do I need to get this bond?
You have to get bonded in order to obtain a New Hampshire money transmitter license from the state Banking Department. It is the licensing authority that regulates the industry. However, the procedure is handled via the website of the Nationwide Multistate Licensing System and Registry (NMLS).
The bond serves as a guarantee that you will follow Chapter 399-G of the New Hampshire Statutes, as well as any other applicable rules.
How much do I have to pay to get bonded?
The New Hampshire money transmitter surety bond amount that you have to provide is $100,000. In order to get bonded, you have to cover a small percentage of it, called the bond premium. It is set on the basis of the strength of your personal and business finances.
The exact surety bond cost is determined by your surety. It needs to consider your personal credit score to assess how risky it is to provide you with the bonding. Other factors that may also come into play include your audited business financials, personal financial statements, and cash on hand. The bond premium that you end up paying will be lower, the stronger your overall profile is.
Is bad credit bonding possible?
It may be possible to get a money transmitter bond with bad credit. However, it is difficult because your surety has to gain confidence in the strength of your finances, having in mind that the bond amount is considerable. You will need to provide your audited business financials and any other paperwork that contributes to depicting a stable application profile.
How do I get my bond?
Getting bonded as a New Hampshire money transmitter starts with completing our online application form (it takes 5min). We can provide you with an exact bond quote whenever you send your full application and documents. In case the quote is satisfactory for you, you can buy the bond online.
If you want to delve into the nitty-gritty details of the bonding process, you can consult the in-depth guide on our How to Get Bonded page.
For any questions or for help with your application form, you can seek assistance from our bonding specialists. You can reach us at (877) 514-5146.
What is the procedure in case of a bond claim?
Your money transmitter bond does not protect your company, but rather works in the interest of your customers. If you fail to follow New Hampshire laws in your operations as a transmitter, you can get a claim against your bond. Harmed parties can thus seek fair reimbursement.
When there is a proven claim, your surety will pay the costs at first. In this way, the claimants can receive fast compensation. Then, you will need to repay it fully, as set in the bond indemnity agreement. Bond claims can be expensive and harmful for your business, so it is best to avoid them.