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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
South Carolina will not register an earned wage access provider until the $30,000 Special Deposit Bond is on file with the Department of Consumer Affairs. The amount is flat for every provider, app based or employer integrated, in state or out of state. You pay an annual premium instead of setting aside $30,000, and the bond is written on the department's own form so it goes straight into your application package.
Under the South Carolina Earned Wage Access Services Act, S.C. Code 39-5-810 et seq., any person providing earned wage access to South Carolina consumers must register with the Department of Consumer Affairs and maintain a $30,000 surety bond issued by a surety authorized to do business in the state. The law took effect November 21, 2024. Registration carries a $1,000 nonrefundable fee, expires every June 30, and the bond must stay in place for three years after the registration is revoked, denied or not renewed.
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S.C. Code 39-5-830(1) says a person may not provide earned wage access in South Carolina unless registered with the Department of Consumer Affairs, and that includes providers with no physical location in the state. A provider is anyone in the business of providing earned wage access services to consumers, which covers both consumer directed apps and employer integrated programs. Every registrant files the Earned Wage Access Services Provider Special Deposit Bond.
The registration requirement does not reach any person doing business under the authority of state or federal law governing banks, credit unions, savings and loan associations, savings banks or trust companies. A fintech that partners with a bank but offers the product under its own name should not assume the bank's charter covers it. The exclusion applies to the chartered institution doing business under that authority.
Section 39-5-830(5) sets the bond at $30,000. It does not scale with transaction volume, number of users or revenue. The bond is payable to the State for the benefit of any claimant against the provider and secures the faithful performance of the provider's obligations with respect to earned wage access services.
The bond must be maintained for three years after revocation, denial or failure to renew the registration. A provider that exits South Carolina still carries the bond for that period. The prescribed form lets the surety cancel only by written notice to the Administrator, effective 45 days after the notice, and liability that arose before cancellation is not affected.
The initial filing fee and the annual renewal fee are each $1,000 and nonrefundable. Registrations expire June 30, and the renewal window runs May 1 through June 30. Under 39-5-870, providers also file an annual report by June 30 covering the prior calendar year, including gross revenue, complaints, transaction counts and fees and tips received. The application must identify at least one way for a user to obtain earned wage access at no cost.
The surety sets the annual premium as a percentage of the $30,000 penalty after underwriting the company, typically looking at the owners' personal credit, the company's financial statements and its operating history. Stronger financials earn a lower rate.
No. S.C. Code 39-5-830(5)(c) sets a single amount of $30,000 for every registered provider, regardless of volume or revenue.
Yes. The statute applies to any person providing earned wage access in South Carolina, including a person that is not physically located in the state.
No. The registration requirement does not apply to a person doing business under the authority of state or federal law relating to banks, credit unions, savings and loan associations, savings banks or trust companies.
Not right away. The bond must be maintained for three years after revocation, denial or failure to renew the registration. The surety's cancellation takes effect 45 days after written notice to the Administrator.
The bond is payable to the State for the benefit of claimants against the provider. The form covers a failure to comply with the Earned Wage Access Services Act or a failure to provide contracted services to consumers, as determined by the Administrator after notice and opportunity for hearing.
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