How much is the bonding requirement?
A. A new transmitter is required to pledge $300,000 and ensure that the amount of bonding is equal to or more than the amount of average daily transmission liability, which is reported to the department. The Commissioner may increase this amount as the licensees business grows and risk profile changes.
A. A money transmitter that sells or issues payment instruments or stored value is required to maintain securities on deposit or a bond of a surety company in an amount no less than $500,000 or 50% of the average daily outstanding payment instrument and stored value obligations in California, whichever is greater, provided that such amount shall not be more than $2,000,000 (Financial Code Section 1817(d). Furthermore, a money transmitter that engages in receiving money for transmission shall maintain securities on deposit or a bond of a surety company in an amount greater than the average daily outstanding obligations for money received for transmission in California, provided that such amount shall not be less than $250,000 nor more than $7,000,000 (Financial Code section 1817(e)). Go to Money Transmitter Division web page.
