California Money Transmitter Bond
Issued for money services businesses licensed in California, backed by A-rated, Treasury-listed sureties.
Overview
Money services businesses seeking a money transmitter license in California are required to post a surety bond as part of the state's licensing process. The bond guarantees the licensee's compliance with California's money transmission statute and protects consumers who use the licensee's services from loss due to insolvency, fraud, or a failure to remit funds as required by law.
Who Needs This Bond
- Licensed money transmitters and payment processors operating in California
- Remittance companies and digital wallet providers seeking California licensure
- Multi-state MSBs adding this state to their license footprint
Obligee & Required Bond Amount
Obligee: California Department of Financial Protection and Innovation (DFPI)
Required amount: Must exceed the average daily outstanding obligations for money received for transmission; not less than $250,000 and not more than $7,000,000.
How This Bond Is Executed
Filing method: Paper bond
Notarization: Required
California does not currently accept this bond as an NMLS Electronic Surety Bond, so it must be issued as a physical, wet-signed original. The signed original also needs to be notarized before it's filed.
How to Get Bonded
Apply
Complete a short application with your business and coverage details.
Get Quoted
We shop the market among A-rated carriers for the most competitive terms.
Get Covered
Sign your agreement and receive your bond or policy, often within a few business days.
Stay Compliant
We track renewal dates so your coverage stays active without a lapse.
Frequently Asked Questions
How much is the California money transmitter bond?+
Must exceed the average daily outstanding obligations for money received for transmission; not less than $250,000 and not more than $7,000,000. This is confirmed against the current statute at the time of your application, since regulators update these figures from time to time.
Who is the obligee on this bond?+
The California Department of Financial Protection and Innovation (DFPI), which is the agency that licenses and regulates money transmitters in California.
Is this an NMLS e-bond or a paper bond in this state?+
California does not currently accept this bond as an NMLS Electronic Surety Bond, so it must be issued as a physical, wet-signed original. The signed original also needs to be notarized before it's filed.
Do I need a separate bond for every state I'm licensed in?+
Yes. Money transmitter bonds are state-specific, so a license in California requires its own bond naming the California Department of Financial Protection and Innovation (DFPI) as obligee, separate from any other state bonds you hold.
How fast can Machaen Insurance Agency issue a California money transmitter bond?+
Once your financials and license application details are in hand, we can typically issue an NMLS e-bond within a day or two; a paper bond takes a bit longer to account for signing, notarizing where required, and mailing the original.
Get a Quote for California
Speak with our surety team about your California money transmitter bond.
201-316-4159
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