Delaware Money Transmitter Bond Overview
- Purpose: To hold money transmitters financially liable for fraudulent or dishonest practices
- Who Needs It: All money transmitter businesses operating in Delaware
- Regulating Body: The Office of the Delaware Bank Commissioner
- Bond Amount: $25,000 plus $5,000 per additional location
- Minimum Price: $250 or 1%
All Delaware money transmitters must file a surety bond for state licensing. Read on to learn all about the bonding process.
What Is a Delaware Money Transmitter Bond?
If you’re applying for a check seller or money transmitter license in Delaware, the State Bank Commissioner requires you to file a surety bond.
A Delaware sale of checks and money transmission bond protects the state and consumers from unethical money transmission practices. It also ensures that you’ll submit honest financial records to the Commissioner.
Who Needs a Check Seller and Money Transmitter Bond?
All businesses that sell checks, issue money orders or receive money for transmission must be licensed and bonded with the Delaware State Bank Commissioner.
Banks, trust companies, credit unions and other regulated financial institutions are exempt from licensing. If you’re an agent of a licensed company, you don’t need your own license.
There is a separate Delaware Casher of Checks, Drafts or Money Orders Bond requirement if you cash financial instruments instead.
Bond Coverage Requirements for Delaware Money Transmitters
The Delaware State Bank Commissioner requires a minimum $25,000 bond for money transmitter professionals and check sellers, plus $5,000 for each additional business location.
The maximum bond amount is $250,000, or 45 branch locations. You may open more locations, but they won’t be added to the bond amount.
| Number of Additional Locations | Bond Amount |
|---|---|
| 0 | $25,000 |
| 1 | $30,000 |
| 2 | $35,000 |
| 10 | $75,000 |
| 20 | $125,000 |
| 30 | $175,000 |
| 45+ | $250,000 |
How Much Do Sale of Checks and Money Transmission Bonds Cost in Delaware?
Delaware money transmitter bond premiums start at $250 for $25,000 coverage, or just 1% of the bond amount. We'll calculate your exact rate by doing a soft credit check.
Apply now to start the bonding process.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Delaware Money Transmitter Bond Work?
A Delaware money transmitter or check seller bond creates a legal contract between three parties.
| Bond Party | Description |
|---|---|
| 1. Principal | The money transmitter or check seller purchasing the bond |
| 2. Obligee | The Office of the Delaware Bank Commissioner |
| 3. Surety | The issuing surety provider |
This bond is your financial guarantee to the Commissioner that you’ll uphold the Sale of Checks Act. Delaware money transmission law prohibits the following practices:
- Misleading customers about a transaction
- Misrepresenting services or terms to consumers
- Operating when the business no longer meets the license standards
- Failing to maintain accurate financial records
If you commit any of these acts, harmed parties can file claims against your bond. The surety will pay valid claims up to the full bond amount. However, you must ultimately refund the surety.
How Do I Get a Check Seller and Money Transmitter Bond in Delaware?
With SuretyBonds.com, you can submit a quick bond application online 24/7. We’ll do a soft credit check and send you a personalized quote within one business day.
Once you pay the premium, we’ll upload the official bond form to NMLS on your behalf. Log in to your NMLS account and authorize the surety provider to officially file the bond under your name.
How Do I Renew My Bond?
Delaware money transmitter bonds expire annually. We’ll send you reminders by phone and email starting 90 days before the expiration date.
If you have new locations, you’ll need to update your bond amount. Otherwise, simply pay the attached invoice to extend your bond term for another year.
Can I Make Changes to My Bond?
Your surety company can typically make small changes to your bond form by issuing a bond rider. You cannot update the bond form yourself.
If you purchased your bond from us, email [email protected] explaining the needed change.
How to Get a Money Transmitter License in Delaware
In Delaware, money service businesses need a seller of checks or money transmission license from the Office of the State Bank Commissioner. To apply, upload the following materials to NMLS:
- Proof of a net worth of $100,000
- Proof of registration with the Delaware Division of Corporations (corporations and LLCs only)
- Proof of federal registration as a money service business
- Copy of your strategic business plan
- Credit report and criminal background check
- Proof of the required surety bond
- List of additional branch locations
- Proof of an AML/BSA policy
- Certificate of Authority
- Resume demonstrating industry experience
- Payment for the license and processing fees
You’ll also need three letters of reference from current business partners, including one from a bank. Mail your letters directly to the address below:
Office of the State Bank Commissioner
Attention: Licensing Department
555 East Loockerman Street
Suite 210
Dover, DE 19901
How Much Does It Cost to Get a Money Transmitter License in Delaware?
You can expect to pay at least $823.75 to get a sales of checks and money transmission license in Delaware. This includes the following fees:
| Fee Type | Amount |
|---|---|
| Investigation Fee | $172.50 |
| License Registration Fee | $230 |
| Surety Bond Premium | $250+ |
| NMLS Processing Fee | $120 |
| Background Check Fee | $36.25/control person |
| Credit Report Fee | $15/control person |
| Agent Fee | $4.60/agent |
*Surety bond premiums vary based on your bond amount and personal credit score.
You’ll also need to account for the indirect costs of business registration, legal fees and hiring a compliance officer. Plus, you must maintain a net worth of at least $100,000.
What If My License Lapses?
Delaware money transmitter licenses expire on December 1 annually. The State Bank Commissioner allows late renewals up to February 28. You’ll need to pay the renewal fee plus a $172.50 reinstatement fee.
Standard license renewal costs $230 annually, plus the applicable processing fees:
- $120 for companies
- $25 for branches
- $35 for individuals
If adding new agents at renewal, the $4.60 fee still applies.
