Arizona Collection Agency Bond

Money transmitters operating in the state of Arizona need to be both licensed and bonded.

• Arizona Money Transmitter Licenses are issued by the Nationwide Multistate Licensing System (NMLS).  
• A Money Transmitter Bond is a type of licensing surety bond. It is a prerequisite for getting an Arizona Money Transmitter License. This bond must be issued by a surety company licensed to provide Arizona Bonds.

An Arizona Money Transmitter Bond is a legal requirement for Arizona Money Transmitters. It holds the money transmitter accountable, protecting the finances of those using money transmitting services. In short, if someone is harmed by the illegal or unethical actions of a money transmitter, they can make a claim against the bond to be reimbursed for losses.

Every Money Transmitter Surety Bond is a contract between three parties:

1. Principal – the money transmitter that needs to get bonded and licensed.
2. Obligee – the organization that requires the bond from the transmitter (Arizona Department of Insurance & Financial Institutions [DIFI]).
3. Surety – the company that issues and financially backs the bond (ex. Lance Surety Bonds).

Say a money transmitter fails to transmit money and does not provide a refund. In this case, a claim can be made against the bond by the affected person or company. Valid claims are paid out to the claimant by the surety within 30 days. However, the money transmitter must then pay the surety back in full.

See What is a Surety Bond? for more information.

All money transmitters operating in the state of Arizona need to be bonded in order to get licensed. In Arizona, you cannot engage in the business of money transmission or advertise money transmission services unless NMLS licenses you. 

A money transmitter is considered any company or individual that:

• sells or issues payment instruments (traveler’s checks, money orders, etc)
• receives money for transmission
• exchanges payment instruments
•  receives money for obligors for the purpose of paying bills, invoices, or accounts

There are some exemptions, including individuals employed by a money transmitter licensee, bank holding companies, and federally insured depository financial institutions. See Arizona Statute ARS 6-1202 for all exemptions.

A Money Transmitter Bond costs as little as $250 annually. While your required bond amount may range from $25,000 to $500,000, you will only pay a small percentage of that to get bonded (generally 1% - 3% if you have good credit)

This surety bond’s cost varies depending on your daily money transmissions and your credit score. While

• Daily Money Transmissions: This determines the bond amount you require. Your surety bond amount must be the greater of $25,000 or an amount equal to 100% of your daily money transmission liability in AZ (calculated for the most recently completed three-month period, up to a maximum of $500,000).
• Credit Score: Once you know your bond amount, your credit score mainly determines your bond cost. This is known as your bond rate or bond premium. However, in some cases, business experience, bond claim history, and financials may also be considered. See the chart below.

*If your tangible net worth exceeds ten percent of total assets, you may maintain a surety bond of $25,000.

Get a Free Bond Quote for an Arizona Money Transmitter Bond.

1. Apply for a Free Bond Quote

The best way to get an Arizona Money Transmitter Bond is to use our online application. It takes only a few minutes and is available 24/7. However, you can also call us at 877-514-5146.

Information needed includes:

• Bond Name (Money Transmitter Bond)
• Bond Amount (Varies; $25,000 - $500,000)
• Your Contact Information

2. Check Your Email

A bond quote will be sent directly to your email. This usually only takes a few minutes, but underwriting for larger bond amounts may take longer. Please don’t forget to check your Junk Mail.

3. Purchase Your Bond

Follow the email instructions to sign the bond agreement and pay your invoice online. We will send you an electronic copy of the bond right away. We can also send the original bond by mail upon request.

Money Transmitters operating in Arizona are regulated by the DIFI. However, NMLS handles all licensing applications and renewals.

To get an Arizona Money Transmitter License, you will need:

1. A list of money transmissions you have previously been provided and/ or seek to provide.
2. A list of criminal convictions and fingerprinting.
3. Financial statements, including a copy of your:
   1. audited financial statements for the most recent fiscal year.
   2. unaudited financial statements for the most recent fiscal quarter.
4. A Money Transmitter Bond in an amount of $25,000 to $500,000—exact amount dependent on your daily money transmissions.
5. An application fee and licensing fee. This ranges from $1,625 to $2,000, depending on the time of year you are applying.
6. Net Worth that is the greater of $100,000 or:
   • three percent of total assets for the first $100,000,000.
   • two percent of additional assets for $100,000,000 to $1,000,000,000.
   • one-half percent of additional assets for over $1,000,000,000.

To get licensed, you must also agree to follow the applicable laws and regulations for money transmission in Arizona. These include maintaining a net worth of $100,000 or more, providing financial statements to the DIFI (AD and UAAR), having your books audited by a certified public accountant (CPA), etc.

Abiding by these requirements is also the best way to avoid bond claims.

An Arizona Money Transmitter bond needs to be renewed annually. The bond’s term should coincide with your Money Transmitter License’s expiry (December 31). We will send you a renewal reminder with instructions one or two months before your renewal.

Hank called us to renew his license on December 30 this year—just one day before it expired. Luckily, our bond expert was able to renew his bond quickly over the phone. While we don’t recommend waiting this long, renewal is usually a quick and painless process.

Please note that your Money Transmitter License is only valid when you have an active bond. If you renew an expired license later than January 31, you will be subject to a late fee of $500.

What happens if my number of delegates or locations changes during the year?

Nothing will happen to your bond amount or license if your number of delegates or location changes during the year. While the amount required for a Money Transmitter Bond in Arizona was once based on locations and delegates, this is no longer the case.

For more information, see the section above: “How Much Does an Arizona Money Transmitter Bond Cost? or visit the Arizona Revised Statutes Title 6, Chapter 12. 

What if I have bad credit?

If you have bad credit, you can still qualify for a Money Transmitter Bond. At Lance Surety Bonds, we specifically have a bad credit bonding program for those with poor credit. With this, we can get most applicants the bond they need at the best possible price!

Get a Free Bond Quote Today.

Arizona Revised Statutes. (n.d.). In www.azleg.gov. Retrieved March 23, 2025, from
https://www.azleg.gov/arsDetail/?title=6

Kix, R. (2025). Getting a Money Transmitter License: Your Guide. In lancesuretybonds.com. lancesuretybonds.com.
https://www.lancesuretybonds.com/blog/money-transmitter-license-guide

Money Transmitters - DFI. (n.d.). In DIFI. Retrieved March 23, 2025, from
https://difi.az.gov/money-transmitters-dfi

State Licensing Requirements. (n.d.). In mortgage.nationwidelicensingsystem.org. Retrieved March 23, 2025, from
https://mortgage.nationwidelicensingsystem.org/slr/sitepages/DynamicLicenses.aspx?StateID=AZ