Massachusetts Money Transmitter Bond Overview
- Purpose: To ensure money transmitters uphold all state and industry regulations
- Who Needs It: All non-exempt money transmitter licensees in MA
- Regulating Body: The Massachusetts Division of Banks
- Bond Amount: $100,000 or 2x average weekly funds
- Minimum Price: $750–$1,000, credit-based
What Is a Massachusetts Money Transmitter Bond?
A Massachusetts money transmitter bond is a financial guarantee that licensed money transmitters will uphold state laws and regulations.
The surety bond protects consumers from fraud, deception, and false advertising — plus other prohibited acts.
Who Needs a Money Transmitter Bond?
As of 2025, those who formerly held a Foreign Transmittal Agency license were required to transition to the Money Transmitter License. Now, any entity that performs money transmissions for clients in Massachusetts must be licensed and bonded.
This includes the following activities:
- Electronic funds transfers
- Bill paying
- Issuing traveler’s checks, money orders, stored value or drafts
- Selling traveler’s checks, money orders, stored value or drafts
If you work as a check seller, we also issue Massachusetts check seller bonds for the separate license requirement.
Bond Coverage Requirements for Massachusetts Money Transmitters
For the first year of licensing, money transmitters need a $100,000 bond. After that, your money transmitter surety bond amount will be the greater of:
- $100,000, or
- 2x of your average weekly money funds deposited with you for remittance.
There is a cap at $2,000,000 for the total bond penal sum. If you need bond coverage over $150,000, please call us at 1(800) 308-4358 for assistance.
How Much Do Money Transmitter Bonds Cost in Massachusetts?
The $100,000 money transmitter bond premium starts at a 1% rate — or $1,000. Applicants with good credit typically pay $1,000–$2,000.
However, exact pricing is personalized based on credit score and the bond amount. Apply now to get your free quote.
If you work as a check seller, we also issue Massachusetts check seller bonds.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Massachusetts Money Transmitter Bond Work?
The bond ensures that money transmitters will comply with Chapter 169 of Massachusetts General Laws and all other applicable laws by creating a three-party contract.
| Bond Party | Description |
|---|---|
| 1) Principal | The money transmitter entity filing the bond |
| 2) Obligee | The Massachusetts Division of Banks |
| 3) Surety | The issuing surety provider |
If you are found guilty of breaking regulations, the state or harmed parties can file bond claims, which the surety reimburses. However, you will then need to repay the surety.
How Do I Get a Money Transmitter Bond in Massachusetts?
It only takes a couple of minutes to apply for your Massachusetts money transmitter bond. Get your bond by following these three steps:
- Fill out the quick application on this page
- Receive your personalized quote within one business day
- Checkout online at your convenience
After purchase, we’ll upload the electronic surety bond directly to NMLS on your behalf. You can find a copy for your records in NMLS or in our follow-up email.
Can I Get Bonded With Bad Credit?
These bonds are directly related to finances, so poor credit may disqualify you. However, our surety experts will shop the top markets to find the best available rate for you. Apply now to see if you qualify for approval with low credit.
How Do I Renew My Money Transmitter Bond?
Pay your renewal premium invoice each year to renew your existing bond for another term. We’ll start notifying you 90 days prior to the expiration date to ensure you don’t have a lapse in coverage.
If you need to update the bond amount after your first year, please email [email protected] outlining the required changes.
How to Get a Money Transmitter License in Massachusetts
Massachusetts money transmitter license applications are completed through the NMLS. To apply, you’ll need to:
- Create an NMLS account
- Purchase a surety bond
- Upload detailed documentation, including proof of tangible net worth
- Register as a federal Money Service Business with FinCEN
- Submit all materials and fees through NMLS
The application process is lengthy, with significant legal and financial requirements. If you need extra assistance, contact the Division of Banks licensing staff at [email protected].
How Much Does a Money Transmitter License Cost?
You’ll pay $1,420 in initial licensing fees in addition to credit report and background check fees for all control persons. The surety bond premium is also typically around $1,000.
| Fee Type | Amount |
|---|---|
| License Fee | $1,000 |
| Investigation Fee | $300 |
| NMLS Processing Fee | $120 |
| Background Check Fee | $36.25/person |
| Credit Report Fee | $15/person |
Use the NMLS licensing checklist below to see the most up-to-date fee table and detailed licensing requirements.
