Delaware Money Transmitter, Transmission & Sale of Checks Surety Bonds

Delaware's Office of the State Bank Commissioner licenses and regulates hundreds of non-bank businesses in the state that provide financial services. The office also resolves complaints and provides customer education programs to Delaware residents.

One of the financial services businesses regulated by the Office is money transmitters.

Money transmitters must be licensed to do to provide money transmission or sale of check services in Delaware, which includes selling or issuing checks, and receiving or transmitting money. A part of licensing includes securing a surety bond.

Obligee and Surety Bonds:

Delaware's Office of the State Bank Commissioner is the obligee that requires a money transmitter in Delaware to obtain a surety bond. Bonds must be for $25,000 for the first location, plus $5,000 for each additional location, but not to exceed $250,000. A surety bond protects the consumers from wrongful acts, omissions, defaults, fraud, or misrepresentation by a licensee.

The Commissioner may also accept an irrevocable letter of credit (known as an ILOC) instead of a bond.

License Requirements:

Complete the sale of checks, money transmission license application.

Applicants must have a net worth of at least $100,000.

Applicants must provide business organization type, register with the federal government as a money service business, provide business references, complete the contact fact sheet, sign the authorization and release, and complete the business survey.

In order to ensure an applicant will operate their business honestly and efficiently, the Commissioner will also examine the applicant's financial condition, business experience, and character.

The Commissioner may also examine the business, books and records of the licensee at any time, with expenses paid for by the licensee.

A licensee may conduct business at more than one location in the state. Agents of a licensee do not need to be licensed.

Types of business allowed with a Delaware Sale of Checks/Transmission of Money License:

• Money Transmission
• Money Orders
• Traveler's Checks
• Stored Value Cards
• Accelerated Payment Products

Fees:

Each license application must include the following fees:

• $230 license fee for the applicant's first location, plus $4.60 for each additional location
• $172.50 investigation fee

How Much Will This Bond Cost?

The premium that you pay for a Delaware Money Transmitter Surety Bond is dependent on credit and the bond amount required. Our rates start at 1.5% of the bond amount with good credit. Bond amounts over $50,000 will require personal and business financial statements. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

Each license application must be made in writing and under oath to the Commissioner.

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