This bond is required for licensed currency exchanges (check cashers) in Illinois who provide check cashing, money order sales, and other financial services to the public. It protects consumers from financial loss if the currency exchange fails to properly fund money orders or violates licensing regulations. The bond …
Overview
What it is.
This bond is required for licensed currency exchanges (check cashers) in Illinois who provide check cashing, money order sales, and other financial services to the public. It protects consumers from financial loss if the currency exchange fails to properly fund money orders or violates licensing regulations. The bond …
Who usually needs it
Community currency exchanges, check cashers, and businesses that operate licensed currency exchange locations in Illinois under the Currency Exchange Act (205 ILCS 405).
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateILBond amount$25,000ObligeeIllinois Department of Financial and Professional Regulation (IDFPR)Bond classLicense BondCategoryFinancial ServicesBondIllinois Community Currency Exchange BondPlain descriptionThis bond is required for licensed currency exchanges (check cashers) in Illinois who provide check cashing, money order sales, and other financial services to the public. It protects consumers from financial loss if th…Who needs this bondCommunity currency exchanges, check cashers, and businesses that operate licensed currency exchange locations in Illinois under the Currency Exchange Act (205 ILCS 405).
FAQ
Common questions.
What does the Illinois currency exchange bond protect against?
The bond protects consumers who suffer financial losses due to the currency exchange's failure to properly perform its duties. Common claims include failure to fund money orders, improper handling of customer funds during check collection services, and violations of licensing regulations under the Currency Exchange Act. Consumers can file claims directly with the Currency Exchange Section of IDFPR, and if validated, receive compensation from the bond up to the bond amount.
What is the bond amount for an Illinois currency exchange license?
The standard bond amount is $25,000 per licensed location, with an aggregate maximum of $350,000 per licensee. Ambulatory (mobile) currency exchanges require a $100,000 bond, which can increase up to $250,000 based on outstanding liabilities. Alternatively, members of a statewide association can obtain a blanket bond with a minimum aggregate of $3,000,000 to $4,000,000 covering multiple licensees.
Is the Illinois currency exchange bond the same as the money transmitter bond?
No, these are two separate bonds regulated under different statutes. The Currency Exchange Bond is required under the Currency Exchange Act (205 ILCS 405) for check cashers and currency exchanges operating at physical locations. The Money Transmitter Bond is required under the Transmitters of Money Act (205 ILCS 658) for businesses that electronically transmit money. Each activity requires its own distinct license and bond from IDFPR.
