Michigan Money Transmitter Bond Requirements

To obtain a money transmitter license in Michigan, you need to post a money transmitter bond as part of your application packet.

The amount of your bond must be $500,000 for your first office location, and another $10,000 for every additional location and delegate, up to a maximum of $1,500,000.

Money transmitters in Michigan are regulated by the DIFS but to apply for your license, you must use the Nationwide Multistate Licensing System & Registry (NMLS).

Why Do I Require a Bond?

This bond guarantees your compliance with the provisions of the state Money Transmission Services Act (MTSA). If you violate the Act’s provisions by causing losses to anyone you provide transmission services to, a claim can be filed by such a person against your bond.

The surety that has issued your bond is then obligated to investigate the issue and determine whether to extend compensation to the claimants. If it concludes that the claim is legitimate, the surety will extend compensation to the claimant in an amount sufficient to cover their losses.

Depending on the number of losses caused, the surety may extend as much as the full penal sum of your bond.

See our ‘What is a surety bond’ guide for a detailed overview of why you need to get bonded and how bonds work!

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
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In the following sections, you can learn more about how much it costs to get a money transmitter bond, what happens when a claim is filed against your bond, and how you can get bonded.

If you need more information about this bond or the bonding process, get in touch with us anytime at (866)-450-3412!

What’s The Cost of Getting a Michigan Money Transmitter Bond?

The surety bond cost, or the bond premium, is the amount of money you need to pay to get bonded. It is equal to only a small part of the total amount of your bond.

Your premium is determined by your surety based on several different factors. See them described below.

Factors That Determine Your Bond Premium

Your personal credit score is the primary factor that your surety considers when setting your bond rate. Your credit score is an indicator of the surety about the likelihood of a claim being made against your bond. The better your score is - the cheaper it will be for you to get bonded.

So, for example, if you have a FICO score of 700 or above, you will usually be offered a bond rate between 1% and 3% of the full amount of your bond.

If your score is lower than that, you will typically be able to get bonded for a rate of no more than 5%.

Apart from your credit score, several other factors are taken into account by the surety. These include:

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

See the table below to get a rough estimate of your bond rate, based on your credit score!

Michigan Money Transmitter Bond Cost Based on Credit Score
License type Bond Amount Credit Score
Above 700 650-699 600-649 Below 599
Michigan money transmitter $500,000 $5,000-$15,000 $5,000-$15,000 $5,000-$15,000 $15,000-$25,000

How Do Bond Claims Occur?

Under 487.1013 of the MTSA, this bond is required of money transmitters in the state as a guarantee for their compliance with the Act. It is intended for the benefit of anyone who is a Michigan resident and who has made use of the services offered by the transmitter but has suffered losses or damages due to the latter’s actions.

If a transmitter causes such losses, such a person can file a claim against their bond. The surety that has issued the bond must then investigate the claim, and determine whether and how much compensation to extend.

Once the surety covers a claim, the bonded transmitter must repay it in full. This is the way that surety bonds work and is a standard condition in every surety bond agreement. Due to the potentially large amount of money that a transmitter may have to pay back to a surety, the safest course of action is to always remain compliant with the conditions of the bond agreement.

How to Get Your Money Transmitter Bond

Ready to apply for your bond? Click on the banner below to complete our short application form. We’ll get in touch with you shortly to provide you with your free and exact quote, along with details on how to complete the process of getting bonded.

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

For more information, call us at (866)-450-3412 anytime!

Further Reading


About us:
Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.