The Massachusetts Division of Banks supervises state-chartered banks and credit unions, along with non-depository institutions doing business in Massachusetts. The Division implements and enforces consumer protection laws and educates consumers on how to make informed financial decisions. One of the industries that is licensed and regulated by the Division is check cashers who sell, issue, or register checks or money orders. A part of licensing for check cashers is to obtain a $100,000 surety bond.
The Massachusetts Division of Banks is the obligee that requires check cashers to obtain a $100,000 surety bond. The bond must be submitted electronically through the NMLS. The surety bond is required to protect consumers in the event a check casher (the licensee) fails to comply with the state laws and regulations. If found in violation, a claim may be placed against the bond, and the licensee (the principal listed on the bond) is responsible for repayment of the claimed amount. If the surety pays the claim, the principal is required to reimburse the surety.
Licensees need to demonstrate that there is a public need for a check casher in the area where they plan to do business. Applicants need to review all laws and regulations for check cashers before submitting an application.
Licensing fees for Massachusetts Check Cashers are:
The following are required to be uploaded in NMLS:
Required Documents to be submitted outside of NMLS:
The premium that you pay for a Massachusetts 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. Our Surety Bond Specialists can supply you with a free quote that fits your specific situation.
Anyone in Massachusetts who engages in cashing checks, drafts, or money orders for more than $1.00 per item must be licensed by the Division of Banks.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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