Seller of Payment Instruments - NMLS Bond - Statewide in Georgia

Brief Summary

Selling money orders or other payment instruments in Georgia falls under the money transmitter license, and the bond starts at $250,000. It can grow with your outstanding liability, and new applicants must complete it through the electronic surety bond process in NMLS.

Georgia treats selling or issuing payment instruments as money transmission, licensed by the Department of Banking and Finance. O.C.G.A. 7-1-683.2 requires a $250,000 corporate surety bond, and the Department can require more when average daily money transmission liability exceeds the bond, up to $2,000,000. The bond runs to the State of Georgia and is filed electronically through NMLS.

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How to Apply for a Seller of Payment Instruments - NMLS Bond:

• Confirm you sell or issue instruments in your own name and are not an authorized agent of a licensee.
• Apply for the Georgia Money Transmitter license through NMLS.
• Have the surety file a $250,000 electronic surety bond in NMLS.
• Show tangible net worth of at least $100,000, or more under the asset formula in O.C.G.A. 7-1-683.2.
• Track average daily outstanding liability each quarter and add bond coverage within 20 days if it exceeds the bond by more than 10 percent.
• Renew on or before December 1. The license expires December 31.

Detailed Information About the Georgia Seller of Payment Instruments - NMLS Bond:

Agents of a licensee do not post this bond

A store that sells money orders as the authorized agent of a licensed company does not need its own license. O.C.G.A. 7-1-682 exempts authorized agents of a licensee. The bond belongs to the company that issues or sells the instruments in its own name.

Payment instruments are money transmission in Georgia

O.C.G.A. 7-1-680 defines money transmission to include selling or issuing payment instruments, along with transmitting money and payroll processing. So the license is the DBF Money Transmitter license, applied for through NMLS.

Bond amount

The bond is $250,000 under O.C.G.A. 7-1-683.2(b). The Department can require more when average daily money transmission liability exceeds the bond, but the added coverage never goes past $2,000,000. Rule 80-3-2-.03 makes this concrete. If the quarterly average daily liability exceeds the bond by more than 10 percent, the licensee has no more than 20 days after that calculation to add coverage.

The bond runs to the State of Georgia for the benefit of the Department and payment instrument holders, and covers money owed to the Department for fees, fines and penalties. DBF will not return a bond or sign a general release of a surety's liability.

Net worth and renewal

Applicants also need tangible net worth of at least $100,000, or a higher figure set by a formula based on total assets. Licenses expire December 31 and renewals are due on or before December 1 under O.C.G.A. 7-1-685.

Exempt from licensing

Federally insured banks, trust companies, credit unions, savings and loans, savings banks and industrial banks, the U.S. Postal Service, government agencies and several other categories listed in O.C.G.A. 7-1-682 do not need the license.

Eligibility and Requirements for a Georgia Seller of Payment Instruments - NMLS Bond:

• Corporate surety bond from a company authorized in Georgia and approved by the Department.
• Obligee: the State of Georgia, for the benefit of the Department and payment instrument holders.
• Minimum $250,000. Additional coverage is capped at $2,000,000.
• Electronic surety bond filed through NMLS.
• Form and terms acceptable and payable to the Department of Banking and Finance.

Georgia Seller of Payment Instruments - NMLS Bond FAQs:

Official and Additional Resources for the Georgia Seller of Payment Instruments - NMLS Bond: