New Jersey Money Transmitter Bond Overview
- Purpose: To ensure money transmitters conduct business according to state laws
- Who Needs It: Anyone who transmits money on behalf of a business or individual in NJ
- Regulating Body: The New Jersey Department of Banking and Insurance
- Minimum Coverage: $25,000 for foreign license $100,000 for domestic license,
- Minimum Price: 2% premium
What Is a New Jersey Money Transmitter Bond?
The New Jersey Department of Banking and Insurance (NJDOBI) requires a money transmitter bond to ensure money transfers are completed legally. You must be bonded to get your foreign or domestic money transmitter license.
The NJDOBI requires a $25,000 bond for foreign money transmitters and a minimum $100,000 surety bond for new domestic money transmitters.
Who Needs a Money Transmitter Bond?
Any entity that is authorized to move, receive or transfer money on behalf of individuals or businesses are considered money transmitters. In New Jersey, you need a money transmitter license and surety bond if you do any of the following activities for compensation:
- Sell or issue payment instruments such as checks, money orders, etc.
- Transmit money for people in New Jersey (i.e. payment instruments, wire, electric transfer, etc.)
- Provide bill pay services
Whether you transmit funds domestically or internationally, you must purchase a surety bond.
Note: Cryptocurrency ATM and kiosk operators also need a money transmitter bond, however, we do not currently have any surety markets that issue these types of bonds.
Bond Coverage Requirements for New Jersey Money Transmitters
There are three surety bond amounts for New Jersey money transmitters — each with their own requirements.
If you’re a new licensee based in the U.S., you’ll need a $100,000 bond. If you’re applying for a foreign money transmitter license, you need a $25,000 bond.
Established money transmitters need a bond between $100,000 and $1,000,000 depending on the annual money transmission volume.
| Annual Total Volume | Required Bond Amount |
|---|---|
| $15 million to $25 million | $150,000 |
| $25 million to $30 million | $200,000 |
| $30 million to $70 million | $750,000 |
| Greater than $70 million | $1 million |
How Much Do Money Transmitter Bonds Cost in New Jersey?
In New Jersey, all money transmitter bonds start at a 2% premium rate but vary based on credit score. For example, a $100,000 money transmitter bond has a starting premium of $2,000. To lower your upfront cost, ask your surety representative about premium financing options.
Apply for your personalized quote today.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a New Jersey Money Transmitter Bond Work?
When you purchase a money transmitter bond, you enter a financial contract between three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | You, the money transmitter |
| 2) Obligee | The New Jersey Department of Banking and Insurance |
| 3) Surety | The issuing surety provider |
If you break the regulations in New Jersey Administrative Code and therefore the bond contract, you are responsible for reimbursing the surety for paid out bond claims.
How Do I Get a Money Transmitter Bond in New Jersey?
To get your New Jersey money transmitter bond, complete the following steps:
- Verify your required bond amount
- Apply for a quote online
- Submit personal and business financial statements (bonds over $100k only)
- Pay the premium
- Receive your bond in the mail
- File with the obligee
*Note: Note: if you’re purchasing a $100,000-$1 million money transmitter bond, you’ll need to provide financial statements.
How Fast Can I Get My Bond?
If you qualify for the minimum rate, you’ll typically receive a quote invoice within hours. However, this bond requires underwriting. So, if your credit score is lower, your quote delivery may take 1-2 business days as we shop our markets to find the best rate for you.
After purchase, you must file the physical bond with the NJDOBI. SuretyBonds.com offers three-day, two-day or overnight shipping at checkout (business days only). Shipping costs $20–$40 based on your selection.
How Do I File My Bond?
The Department of Banking and Insurance requires New Jersey money transmitter licensees to file the original, physical bond form. Mail your bond to the following address:
NJDOBI License Services, Banking
PO Box 473
Trenton, NJ 08625
How Do I Renew My Money Transmitter Bond?
New Jersey money transmitter bonds expire after one year. A surety representative will start notifying you 90 days prior to your bond expiration date.
To renew, verify if your bond amount needs to be increased. If not, simply pay your renewal premium when prompted. Refer to our Surety Bond Renewal Guide for more information.
How Do I Update My Bond Information?
If you need to update your New Jersey money transmitter bond, email the information that needs changed to [email protected].
A SuretyBonds.com representative can often help amend the bond through a bond rider — the only legal method of updating an existing bond.
How to Get a Money Transmitter License in New Jersey
Complete the following steps to get your New Jersey money transmitter license from the Department of Banking and Insurance:
- Gather supporting documents
- Prepare an audited financial statement
- Make copies of any SEC filings
- Purchase a surety bond
- Submit personal information for all control persons
- Complete fingerprint background checks
- Pay the $700 license fee
- Mail in application to the NJDOBI
You may need to submit additional information or materials in your license application. Read the License Application Instructions packet for more details.
What Are the Net Worth Requirements?
In addition to your surety bond, you’ll need to provide an unqualified, audited business financial statement to prove you are in good financial standing. You must demonstrate a minimum net worth of $50,000 plus $10,000 per additional agent or location in New Jersey with a $1,000,000 cap.
