Money Order Sales Bond - MEMO Financial Services, Inc. in All States
Table of Contents
Brief Summary
If MEMO Financial Services has approved your store to sell its money orders, this bond is usually the last step before the equipment goes in. It backs your promise to send MEMO the money you collect for every money order you sell. You pay a yearly premium instead of handing MEMO a cash deposit, and the bond stays in force until it is cancelled.
MEMO Financial Services, Inc. and its subsidiaries sell money orders through retail agents such as convenience stores, grocery stores and check cashers. MEMO can require an agent to post a surety bond naming MEMO as obligee. The bond guarantees that the agent will remit the proceeds of money order sales to MEMO and follow the agent agreement. MEMO sets the bond amount for each agent, so confirm the amount and bond form with your MEMO sales representative before the bond is issued.
We can help with all All States bonds!
How to Apply for a Money Order Sales Bond:
- Get the required bond amount and any required bond form from your MEMO sales representative.
- Use the corporate business name and DBA exactly as they appear on your MEMO agency application.
- List each owner or officer holding 10% or more of the business for the credit review.
- Have your recent financial statements or tax returns ready, since the surety may ask for the same ones MEMO did.
- Pay the premium and send the signed bond to MEMO as your sales representative directs.
Detailed Information About the All States Money Order Sales Bond:
What this bond is for
When a store sells a MEMO money order, the customer pays the store, and the store owes that money to MEMO. MEMO is the licensed money transmitter that stands behind the money order. This bond protects MEMO if an agent collects the cash and does not pass it along, or otherwise breaks the duties in its agent agreement. If that happens, MEMO can claim on the bond, and the surety pays up to the bond amount. The agent then has to repay the surety.
This is a private bond. No state statute sets the amount. MEMO decides whether a bond is needed and how large it should be when it reviews an agency application, so the figure on your bond comes from MEMO, not from a state agency.
Who MEMO works with
MEMO describes itself as a money order company founded in 1986 to serve supermarkets and convenience stores. Its agents today include convenience stores, grocery stores and check cashers, and its site says it offers money orders to retailers in 26 states. The company is based at 1029 Mumma Road in Camp Hill, Pennsylvania, and operates through several subsidiaries, each with its own NMLS number.
What MEMO looks at before approving an agent
MEMO's agency application asks for every owner or officer holding 10% or more of the business, with Social Security numbers and dates of birth. It also asks about criminal cases, civil suits, bankruptcies and judgments. Businesses under two years old must attach a personal financial statement. Businesses over two years old must attach two years of business financial statements or business tax returns. Every applicant attaches a current bank statement from the operating account. Expect the surety to ask for much of the same information, because the underwriting questions are similar.
What the bond costs
The premium is a percentage of the bond amount MEMO sets. The surety bases the rate on the owners' personal credit, the financial strength of the business and its history. Strong credit and clean financials get the best rate.
Eligibility and Requirements for an All States Money Order Sales Bond:
- MEMO Financial Services, Inc., or the MEMO subsidiary on your agent agreement, named as obligee.
- Bond amount set by MEMO for your location.
- Business name on the bond matching the MEMO agency application.
- Owner credit review and, for larger amounts, business financials.
- A signed MEMO agent agreement covering money order sales.
All States Money Order Sales Bond FAQs:
MEMO sets the amount for each agent during approval. Ask your MEMO sales representative for the figure and any required form, and we will write the bond to match it.
No. It is a contract bond between you, the surety and MEMO. MEMO holds the state money transmitter licenses. Your bond protects MEMO if money order proceeds you collect are not sent to it.
MEMO can claim on the bond for unpaid money order proceeds or other breaches of the agent agreement. The surety pays valid claims up to the bond amount, and you must repay the surety in full.
It is a percentage of the bond amount. The rate depends mainly on the owners' credit and the financial condition of the business. We quote it once you apply.
MEMO takes agency applications by fax or mail through its Become An Agent page, or you can call its sales department at 1-800-922-8079.
