California Check Seller, Bill Payers, and Proraters Bond Guide
If you’re applying for a check seller, bill payer, or prorater license in California, you’ll likely need this surety bond.
Bond Overview
- Purpose: To protect consumers from mishandling of funds by financial professionals
- Who Needs It: Check sellers, bill payers, and bill proraters
- Regulating Body: The California Department of Financial Protection and Innovation (DFPI)
- Required Coverage: $25,000 for bill payers and proraters, $500,000 for check sellers
- Premium Rate: 1–10% based on credit score
Learn all about the bond requirements and process in this guide.
What Is a California Check Seller, Bill Payers, and Proraters Bond?
This bond protects clients if a check casher, bill payer or prorater:
- Mishandles funds
- Breaks license regulations
- Violates other legal obligations
The California DFPI requires this bond as part of the licensing process for businesses that sell checks and money orders or receive money to provide bill payment services.
How Much Do Check Seller, Bill Payers, and Proraters Bonds Cost in California?
California check seller bonds cost a small percentage of the bond amount, typically 1–10% based on credit score.
If low credit results in a high premium, you may qualify for financing. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Check Seller, Bill Payers, and Proraters License and Bond?
There are four license types regulated by the California DFPI under The Check Sellers, Bill Payers and Proraters Law:
- Check Sellers: Sells checks, money orders or drafts to pay obligations or transfer funds
- Bill Payers: Accept money to pay bills as an agent of an obligor for a fee
- General Proraters: Receive money or assets to distribute among creditors on behalf of a debtor
- Special Proraters: Pay bills on their customers’ behalf, typically business managers/agents
Bill payers and proraters need a $25,000 surety bond and must maintain a $25,000 minimum net worth.
Check sellers are required to maintain a $500,000 minimum net worth in addition to a $500,000 bond.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a California check seller or bill payer bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll email you the bond shortly after purchase. Be sure to file the bond with the DFPI as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a California Check Seller, Bill Payers, and Proraters Bond Work?
As with all surety bonds, a check seller bond creates a legal contract between three parties:
- Principal: You, the financial professional filing the bond
- Obligee: The California Department of Financial Protection and Innovation requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of the California Check Sellers, Bill Payers and Proraters Law.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your check seller bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
