Overview of New Jersey Money Transmitter Bond Requirements

Under Section C.17:15C of the New Jersey Revised Statutes, also known as the Money Transmitters Act, anyone who wants to conduct money transmission in the state must get a license and a money transmitter bond.

The amount of this bond varies between $100,000 and $1,000,000 for money transmitters in the state, and between $25,000 and $100,000 for foreign money transmitters, as defined by the Act.

Who needs to get bonded?

According to New Jersey law, a money transmitter license and bond are required by anyone who:

  • Sells or issues payment instruments for a fee or other benefit
  • Receives money for transmission and transmits money in the U.S. or elsewhere through various means
  • Receives money for a fee or other benefit in order to pay someone's bills, invoices, accounts or other financial debts

Why do I need this bond?

This bond is a form of a financial guarantee and security which you need to provide to the state, and to anyone who makes use of your services as a money transmitter. It guarantees you will comply with your obligations and responsibilities under the NJ Money Transmitters Act.

It also serves as a protection in the case of a transmitter violating the Act and causing losses or damages to any person. The injured party can then file a claim against the bond to request compensation from the transmitter or their surety. The compensation that is extended under the bond claim will cover the losses up to the full amount of the bond.

If you require more information about how surety bonds work, see our ‘What is a surety bond' guide for a detailed explanation!

Start your surety bond application today! Why us?
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See the sections below for more information about the cost of your bond, bond claims, and how to apply!

Call us at (866)-450-3412 anytime if you want to know more about this bond!

How Much Does the New Jersey Money Transmitter Bond Cost?

The cost of your bond is a fraction of the full amount you are required to post as a bond. This amount is determined by the Commissioner of Banking and Insurance and will be a minimum of $100,000, and at most $1,000,000.

When the Commissioner determines the amount of the bond you must obtain, you can apply for a rate at a surety. This rate will be a percentage of the full amount and is determined by various factors.

Factors that determine the bond premium

Your personal credit score is the factor which has the most influence on your bond premium. If you have a high credit score, the surety will be willing to bond you for a lower cost.

Apart from your credit score, the following factors also influence your bond cost to some extent:

  • Personal and business financial statements
  • Types and amount of assets
  • Liquidity
  • Industry experience

If you have a credit score of 700 or more, you can expect to be offered a rate equal to 1%-4% of the amount of your bond.

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Can I get bonded with low credit?

Applicants with lower credit scores can get bonded as easily as everyone else. The only difference in the bonding process is that such applicants need to pay slightly higher rates. This is because sureties consider it a higher risk to issue bonds for applicants with lower scores.

Since bond rates are not fixed, you are able to improve your bond rate significantly over time by improving your credit score. This way, you can get a better premium with every bond renewal.

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

How Do Bond Claims Occur?

Bond claims occur when the bonded party, the bond principal, violates the conditions of the bond agreement. Money transmitters in New Jersey have various obligations and responsibilities under the NJ Money Transmitters Act.

If by violating any of the provisions of the Act, any person is injured in any way by the money transmitter, that person may file a claim against the bond to seek compensation. Under the bond agreement, it is the money transmitter who is ultimately liable for any claims against the bond. To expedite the process, a surety may cover a claim against a bond for up to the full amount of the bond.

Yet, when a surety covers a claim, the bonded transmitter must repay the surety in full, as part of the agreement. Due to the high amounts of the money transmitter bonds, claims against these bonds can be quite costly. For this reason, it is safest to always comply with the money transmitter laws, so that no claims are ever filed against you.!

Get Your Money Transmitter Bond Today!

To get started with the bonding process, complete our quick bond application form, and we will provide you with a free and accurate transmitter bond quote.

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

For any additional questions about the bonding requirements for money transmitters in New Jersey, 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.