Overview of Massachusetts Money Transmitter Bond Requirements

When you apply for a money transmitter (or check seller) license in Massachusetts, you will be asked to post a $100,000 money transmitter bond.

The state Division of Banks (DOB) regulates this license but the application process must pass through the Nationwide Multistate Licensing System & Registry (NMLS).

Why do I need a bond?

When you obtain this bond, you provide a guarantee that you intend to comply with the provisions of both 209 CMR 45.00 as well as Chapter 167F of the General Laws of Massachusetts.

The bond also works as protection to all individuals who make use of a transmitter's services. If a transmitter violates the above laws, and causes losses to an individual, that person may file a claim against the transmitter's bond.

The surety that backs the bond must then investigate the claim to determine the amount of compensation to extend to cover the losses suffered. Such compensation can be as high as the full amount of the bond.

To find out more about how bonds work, and why businesses need them, see our ‘What is a surety bond' guide!

Start your surety bond application today! Why us?
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Learn more about the cost of your bond, the claims process, and how you can apply for your bond in the sections below!

Call us anytime at (866)-450-3412 if you have any questions about the bonding requirements for check sellers in Massachusetts.

What's The Cost of The Massachusetts Money Transmitter Bond?

To get bonded, you must pay a surety bond premium. This premium is equal to a part of the full amount of your bond, and is determined by the surety when it reviews your application. In determining your premium, the surety looks at the following factors.

Factors that determine your bond premium

Your credit score is the primary factor that the surety will consider when offering you a bond rate. Usually, the higher an applicant's score is, the lower the premium they need to pay is.

Applicants who have a very high credit score can expect to be offered a rate between .75% and 1.5% of the full amount of their bond.

Applicants who have a fairly good to moderate score are typically bonded at a rate of up to 5%.

Finally, applicants who have a low score are usually offered a rate in the range of 5% to 15%.

In addition to your credit score, your surety is likely to also want to review information regarding some of the following:

  • Personal and business financial statements
  • Fixed and liquid assets
  • Work experience and record

To get a sense of how much your bond might cost, based solely on your credit score, see the table below!

Massachusetts Money Transmitter Bond Cost Based on Credit Score

License type

Bond Amount

Credit Score
Above 700 650-699 600-649 Below 599
Massachusetts money transmitter / check seller $100,000 $750-$1,5000 $1,000-$2,500 $2,500-$5,000 $5,000-$7,500

How Do Bond Claims Occur?

Under the laws of Massachuestts, the purpose of the bond is to serve as financial security for the payment of checks or money orders sold by a licensed transmitter (check seller) or their agent.

If a licensee violates either the provisions of the state General Laws and the Code of Regulations or any rules created under them, this may lead to a claim against their bond.

Claims are typically brought against a bond personally by any person who has suffered a loss as a result of a licensee's violation. When a claim is filed, the surety must investigate it to determine what the appropriate amount of compensation should be.

Once a surety extends compensation to a claimant and the claim is formally resolved, the bonded transmitter must reimburse the surety in full for the security it has provided. This is a standard condition of all surety bonds - that liability for a claim is always assumed by the bonded party.

To avoid the complications that arise with claims, the best course of action is to always strictly comply with the conditions of your bond.

Here's How to Get Your Bond!

To get started with your bond application, click on the banner below, and simply complete the short form. We will then provide you with a free quote on your bond as well as detailed information about completing the bonding process.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

To learn more about getting bonded or to address any other bond-related questions, call us 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.