Florida Money Services Business Bond Overview
- Purpose: To hold MSB owners financially liable for upholding license regulations
- Who Needs It: All money transmitters and payment instrument issuers in Florida
- Regulating Body: The Florida Office of Financial Regulation
- Bond Amount: $50,000 or 2% of annual funds handled
- Minimum Price: $1,000 or 2% of bond amount
What Is a Florida Money Services Business Bond?
A Florida money services business bond is required for licensed money transmitters and payment instrument issuers in Florida.
The Florida Office of Financial Regulation (OFR) enforces this bond requirement to protect the state and clients if a money services business:
- is fraudulent,
- goes out of business, or
- breaks industry regulations.
Who Needs a Money Services Business Bond?
The Florida OFR recognizes five different types of money services businesses (MSBs):
- Money Transmitter* (also authorizes check cashing activities)
- Check Casher
- Foreign Currency Exchanger
- Deferred Presentment Provider
- Payment Instrument Issuer*
Money transmitters and payment instrument issuers need a surety bond. The other license types do not.
Bond Coverage Requirements for Florida Money Transmitters & MSBs
All money transmitters and payment instrument issuers need $50,000 minimum bond coverage or 2% of the amount of money handled in a one-year period. This is either a projection for new licensees or the actual business volume from the previous fiscal year.
The maximum bond coverage is capped at $2,000,000. Be sure to verify your bond amount with the Office of Financial Regulations before applying.
How Much Do Money Services Business Bonds Cost in Florida?
Florida money services business and money transmitter bonds start at 2% of the total bond amount. For example, the base $50,000 coverage starts at $1,000 for applicants with excellent personal credit scores.
Rates vary based on personal financials and the required bond coverage. Apply for your quote today.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Florida Money Transmitter or Payment Issuer Bond Work?
This type of license surety bond creates a legal contract between three parties: the principal, obligee and surety provider.
| Bond Party | Description |
|---|---|
| 1. Principal | The money services business owner(s) |
| 2. Obligee | The Florida Office of Financial Regulation |
| 3. Surety | The issuing surety provider |
As the principal, you promise to uphold your obligation to the Florida OFR. If you break license laws or regulations, the surety bond holds you financially responsible for covering any damages to the state or your clients.
How Do I Get a Money Services Business Bond in Florida?
With SuretyBonds.com, you can apply for your Florida money transmitter bond online in just a few steps.
- Apply for an online quote
- Provide any additional information, if requested
- Complete your purchase and select shipping method
- Sign the physical bond form
- File with the Florida OFR
How Do I File My Bond?
Florida requires principals to file the original bond form. We’ll mail you the physical bond form, sign and file it with the OFR as instructed to become bonded.
Can I Get Bonded With Bad Credit?
Principals for these bonds (money transmitters) are involved in a high-risk industry directly related to handling consumer funds. Because of this, it can be difficult to qualify for a money transmitter license and bond if you have poor personal credit.
However, if you have bad credit, you may be able to strengthen your application by providing personal and business financial statements and proof of industry experience.
How Do I Renew My Money Services Business Bond?
To renew your bond, pay your renewal invoice when prompted by the surety. You’ll need to renew annually to maintain active coverage along with your license.
If your bond amount needs to be increased because you’ve added location or authorized delegates, please contact us or your surety provider.
How to Get a Money Transmitter License in Florida
Florida is one of the only states that does not process money transmitter license applications through the NMLS. Instead, you’ll need to apply online through the Florida OFR licensing portal.
Find a full list of the required forms and records on the OFR website before starting your application.
