The Illinois Money Transmitter Bond protects consumers from financial losses if a licensed money transmitter fails to properly transmit funds, mishandles payment instruments, or violates provisions of the Illinois Transmitters of Money Act. The bond amount ranges from $50,000 to $2,000,000 based on the volume of money…
Overview
What it is.
The Illinois Money Transmitter Bond protects consumers from financial losses if a licensed money transmitter fails to properly transmit funds, mishandles payment instruments, or violates provisions of the Illinois Transmitters of Money Act. The bond amount ranges from $50,000 to $2,000,000 based on the volume of money…
Who usually needs it
Any individual or business that receives money for transmission, sells or issues payment instruments (such as money orders), or exchanges foreign currency for compensation in Illinois. This includes fintech companies, money service businesses, remittance companies, and payment processors operating in the state.
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$50,000ObligeeIllinois Department of Financial and Professional Regulation (IDFPR), Division of Financial InstitutionsBond classLicense BondCategoryFinancial ServicesBondIllinois Money Transmitter BondPlain descriptionThe Illinois Money Transmitter Bond protects consumers from financial losses if a licensed money transmitter fails to properly transmit funds, mishandles payment instruments, or violates provisions of the Illinois Trans…Who needs this bondAny individual or business that receives money for transmission, sells or issues payment instruments (such as money orders), or exchanges foreign currency for compensation in Illinois. This includes fintech companies, m…
FAQ
Common questions.
What is the bond amount for the Illinois Money Transmitter Bond?
The Illinois Money Transmitter Bond amount is tiered based on your money transmission activity in Illinois. The bond amount is calculated as the greater of $50,000 (minimum) or 1% of your licensee's daily average of outstanding payment instruments over the prior 12 months, up to a maximum of $2,000,000. For requirements exceeding $1,000,000, licensees may post a $1,000,000 bond plus a dollar-for-dollar increase in net worth to reach the maximum.
Who needs the Illinois Money Transmitter Bond?
Any individual or business that receives money for transmission, sells or issues payment instruments (like money orders), or exchanges foreign currency for compensation in Illinois must obtain this bond. This includes fintech companies, money service businesses, remittance companies, and payment processors. The bond is required to obtain and maintain a money transmitter license from the Illinois Department of Financial and Professional Regulation (IDFPR).
What triggers a claim on the Illinois Money Transmitter Bond?
A claim can be filed against the Illinois Money Transmitter Bond when a licensed money transmitter violates provisions of the Illinois Transmitters of Money Act (205 ILCS 658/). Common violations include failure to properly transmit money as agreed upon, mishandling payment instruments, failure to comply with licensing law requirements, or causing financial losses to consumers through non-compliance. The bond protects consumers and ensures money transmitters fulfill their legal and contractual obligations.
