Overview of Arizona Money Transmitter Bond Requirements

According to the Arizona Revised Statutes, all applicants for a money transmitter license from the AZDFI must post a money transmitter bond along with their application in order to get licensed.

The amount of the bond varies between $25,000 and as much as $500,000 based on the number of delegates and locations the transmitter has.

Who requires this bond?

According to the ARS, anyone who sells, exchanges or issues payment instruments, or receives money for transmission, for the payment of bills, invoices or accounts must get a money transmitter license and bond.

Why do I need to get bonded?

Getting bonded is a form of guarantee that the money transmitter will comply with the provisions of Chapter 12 of Title 6 of the ARS.

If a transmitter violates these provisions and thereby causes losses or damages to their clients, the bond also serves as protection by guaranteeing financial compensation. Such compensation is extended by the surety which backs the bond and can be as high as the full amount of the bond.

If you are a first-time bond applicant, see our ‘What is a surety bond' guide to get a fuller picture of how bonds work and who they protect.

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
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The following sections will offer you more information about the cost of your bond, how bond claims occur, and how you can get bonded.

If you have any further questions about this bond or the bonding requirements for money transmitters in Arizona, call us at (866)-450-3412!

How Much Does the Arizona Money Transmitter Bond Cost?

The cost of your bond is equal to a percentage of the full amount of the bond you are required to get.

The minimum required amount for this bond is $25,000 for a licensee with 5 or fewer delegates and locations.

A $100,000 bond is required for licensees with more than 5 but fewer than 21 delegates and locations. An additional $5,000 are required for every additional delegate or location above 20 but fewer than 201.

A $250,000 bond is required for licensees with more than 200 delegates and locations. An additional $5,000 is required for every additional delegate or location above 200 to a maximum of $500,000.

Your cost will be based on your exact bond amount and is a fraction of that amount. Cost is determined by several important financial factors.

What determines my bond cost?

There are several significant bond cost factors that the surety reviews to determine the exact premium to require from an applicant. The personal credit score is the most important factor that sureties consider. The higher an applicant's score, the lower their premium will likely be.

However, sureties also consider factors like personal and business financial statements, work record and experience, personal assets, and the like. These too have an impact on cost, though not as much as the credit score.

Applicants with a high credit score, one of 700 FICO or more, can expect to get the lowest possible rates on their bonds. Such applicants are usually bonded at rates between 1%-4% of the total bond amount. You can get a free estimate of the cost of your bond by trying our bond calculator below!

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Can I get bonded with bad credit?

Even though your credit score may be low, you can still get bonded. Rates for applicants with lower credit are higher due to the increased risk assumed by sureties when issuing bonds for such applicants.

By improving your credit score over time, you can also improve your bond rate significantly.

Learn more about getting bonded with a low credit score at the Bad Credit Program page!

What Gives Rise to a Bond Claim?

Surety bonds' main purpose is to serve as a guarantee to the public and state that the bonded party will comply with various legal requirements. Violating the bond agreement can, therefore, lead to a bond claim.

The bond form for the Arizona money transmitter bond states that the bond is for the benefit of anyone “injured by the wrongful act, default, fraud or misrepresentation of the licensee or his employees”. In other words, if the licensed and bonded money transmitter causes losses to one of their clients, the latter may file a claim against the bond to receive compensation.

Typically, when a bond claim is filed, the surety will investigate the issue to establish the amount of loss or injury caused, and whether the claim is legitimate. It will then extend compensation to claimants up to the full amount of the bond.

Bond claims do not end there, though. Since the bonded money transmitter is ultimately liable for any claims, the must repay the surety in for any compensation it has extended to a claimant. For this reason, it is always best to comply strictly with the requirements of a bond, so as to avoid the complications that arise with a claim.

Apply for Your Bond Here!

To apply for a money transmitter bond in Arizona, complete the application form and we will get in touch with you shortly to provide you with a free quote and more information.

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

If you want to know more about this bond or need help with your application, give us a call at (866)-450-3412!

Further Reading


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.