A money transmitter bond is required by the State of Arizona as a prerequisite to become a licensed money transmitter in Arizona. One cannot sell or issue payment instruments, engage in the business of receiving money for transmission or transmitting money, engage in the business of exchanging payment instruments or money into any form of money or payment instrument, or engage in the business of receiving money for an obligor for the purpose of paying that obligor’s bills, invoices, or accounts without first obtaining a money transmitter’s license.
The bond is conditioned on the faithful compliance of the licensee, including its directors, officers, authorized delegates, and employers, with State of Arizona statutes. The bond is payable to anyone injured by the wrongful act, default, fraud, or misrepresentation of the licensee, his authorized delegates or his employees, or to the state for the benefit of the person injured.
Applicants for a money transmitter license are required by the State of Arizona to obtain a bond.
A $25,000 surety bond is required for a licensee with five or fewer authorized delegates and locations.
A $100,000 surety bond is required for a licensee with more than five but fewer than 21 authorized delegates and locations.
An additional $5,000 is required to be added to the surety bond amount for each authorized delegate and location in excess of 20 but fewer than 201 authorized delegates and locations, up to a maximum of $250,000.
An additional $5,000 is required beyond that for each authorized delegate and location in excess of 200 authorized delegates and locations, up to a maximum of $500,000.
Colonial offers the direct and digital way to obtain an Arizona money transmitter bond. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your bond instantly. The steps are simple — get a quote online, fill out your information, and enter your payment method. Print your bond from your home or office. It’s that simple!
An Arizona money transmitter bond is reasonably priced and easy to obtain. You may notice that with other insurance agents and middlemen companies, your premium rate will fluctuate and include additional hidden fees and costs. Colonial offers our lowest possible rate. Premium is based on the amount of the bond required by the applicable government agency.
It is important to understand how surety bonds work, and who is the insurance company issuing your bonds. It is easy to obtain an Arizona money transmitter bond when you deal direct with a quality insurance company licensed to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best, that has been incorporated since 1930. We are Treasury listed, and licensed and admitted in all U.S. states and territories.
Arizona Money Transmitter Bond
A money transmitter bond is required by the State of Arizona as a prerequisite for a licensed money transmitter to legally operate in Arizona.