Virginia Money Transmission Bond Overview
- Purpose: To ensure licensed money services businesses uphold laws and regulations
- Who Needs It: All money order seller and money transmitter licensees in Virginia
- Regulating Body: The Virginia Bureau of Financial Institutions
- Bond Amount: $25,000
- Minimum Price: $250 for a 1-year term
What Is a Virginia Money Sales/Transmission Bond?
A Virginia money order seller and money transmitter bond is a form of financial security required by the Virginia SCC’s Bureau of Financial Institutions.
This type of surety bond protects the state and clients if a licensed money sales/transmission business mishandles funds, engages in fraud, or otherwise breaks license regulations.
Who Needs a Money Order Sales and Money Transmission Bond?
This bond is mandatory for any business that sells money orders or offers money transmission services for Virginia residents. Even if you aren’t located in Virginia, you need a Virginia license and $25,000 bond to work with clients in the state.
There is a joint license for money transmission and money order sales to cover the following business activities:
- Money Transmission: Issuing traveler’s checks selling traveler’s checks, issuing money orders
- Money Order Sales: Selling money orders, issuing or selling drafts, issuing or selling prepaid access/stored value
How Much Do Money Transmission Bonds Cost in Virginia?
The $25,000 Virginia money transmission bond premium starts at $250 for a 1-year term for applicants with excellent credit. Or, you can save 25% by selecting a multi-year term.
Your exact price will be determined once underwriters review your application. The primary factor determining your cost is the personal credit score of all owners. Apply now to get your free, no-obligation quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Virginia Money Transmission Bond Work?
This type of surety bond creates a legal contract between three parties: the principal, the obligee and the surety.
| Bond Party | Description |
|---|---|
| 1) Principal | The bonded money services business owner(s) |
| 2) Obligee | The Virginia Bureau of Financial Institutions |
| 3) Surety | The issuing surety provider |
As the principal, being bonded shows that you are financially secure and will be responsible if your business becomes liable for repaying claims.
If the state or clients file claims for damages, the surety will reimburse them, then you must repay the surety.
How Do I Get a Money Transmission Bond in Virginia?
You can get your bond as quickly as same-day with SuretyBonds.com. Complete these simple steps:
- Apply for a quote online
- Provide any information and signatures when prompted
- Purchase the bond online
- Authorize the surety in NMLS
Once you complete these steps, you will be officially bonded in the state of Virginia.
How Fast Can I Get My Bond?
All SuretyBonds.com money services business bond quote applications receive a response within one business day or less.
If you have strong financials and complete all fields of the application, we can provide quote invoices for purchase as quickly as same-day.
How Do I File My Bond?
Once you checkout, the surety will upload the electronic surety bond to NMLS on your behalf. You’ll need to go to your “Tasks” tab in NMLS then “Surety Bonds” to authorize the surety. After granting authority, you will be officially bonded.
How Do I Renew My Money Order Sales and Money Transmission Bond?
You’ll need to renew your bond every year by paying your renewal premium invoice. If the Bureau of Financial Institutions informs you that you need a higher coverage amount, contact your surety provider with this information.
How to Get a Virginia Money Order Seller of Money Transmitter License
The Virginia Bureau of Financial Institutions oversees money order seller and money transmitter licensing. To apply, create an NMLS account and upload all information, including your surety bond authorization.
Virginia is unique because there are also a few materials that must be mailed in rather than uploaded to NMLS, such as business reference letters and bank reference letters.
Be sure to carefully read through the NMLS checklist before you submit to make sure all materials are sent to the right location.
How Much Does It Cost to Get Licensed?
The Virginia BFI charges a $1,000 application fee for money sales/transmission licensing in addition to the NMLS $120 processing fee. You’ll likely incur fees for criminal background checks and credit reports during the process as well.
