The Indiana Money Transmitter Bond protects consumers and ensures compliance with state regulations for companies that handle money transmission services. The bond amount is the greater of $300,000 or the licensee's average daily money transmission liability in Indiana for the most recently completed calendar quarter,…
Overview
What it is.
The Indiana Money Transmitter Bond protects consumers and ensures compliance with state regulations for companies that handle money transmission services. The bond amount is the greater of $300,000 or the licensee's average daily money transmission liability in Indiana for the most recently completed calendar quarter,…
Who usually needs it
Money transmitters operating in Indiana who engage in receiving money for transmission, issuing payment instruments, or providing stored value services. This includes fintech companies, payment processors, cryptocurrency exchanges, and money transfer operators that need to be licensed by the Indiana Department of Financial Institutions.
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.
StateINBond amount$300,000ObligeeIndiana Department of Financial InstitutionsBond classLicense BondCategoryFinancial ServicesBondIndiana Money Transmitter BondPlain descriptionThe Indiana Money Transmitter Bond protects consumers and ensures compliance with state regulations for companies that handle money transmission services. The bond amount is the greater of $300,000 or the licensee's ave…Who needs this bondMoney transmitters operating in Indiana who engage in receiving money for transmission, issuing payment instruments, or providing stored value services. This includes fintech companies, payment processors, cryptocurrenc…
FAQ
Common questions.
What is the bond amount for the Indiana Money Transmitter Bond?
The bond amount is the greater of $300,000 or your company's average daily money transmission liability in Indiana for the most recently completed calendar quarter, with a maximum cap of $500,000. Licensees at the $500,000 maximum are exempt from further quarterly liability calculations. This requirement is set under Indiana Code § 28-8-4.1-1002 as part of the Indiana Money Transmission Modernization Act effective January 1, 2024.
Who needs to obtain an Indiana Money Transmitter Bond?
Any business engaged in money transmission activities in Indiana must obtain this bond. This includes companies that receive money for transmission, issue payment instruments, provide stored value services, or operate as payment processors. Examples include fintech companies, cryptocurrency exchanges, money transfer operators like Western Union or MoneyGram, and payment app providers. The bond must be filed through the Nationwide Multistate Licensing System (NMLS) and maintained continuously throughout the license term.
What violations can trigger a claim against the Indiana Money Transmitter Bond?
Claims can be filed when a money transmitter fails to comply with the Indiana Money Transmitter Act. Common triggers include: failure to properly account for consumer funds, not promptly paying funds owed to consumers, mishandling money transmission activities, inadequate recordkeeping, or other violations of Indiana Code Title 28, Chapter 8-4.1. Aggrieved consumers can file claims with the surety company up to the bond's penal sum. The surety investigates and pays valid claims, then seeks reimbursement from the money transmitter.
