District Of Columbia — Payment Service Provider Bond
The District of Columbia Payment Service Provider Bond is a required security instrument for entities operating as money transmitters or payment service providers within the District. This bond serves as a regulatory requirement to demonstrate financial responsibility and compliance with local licensing mandates overseen by the Department of Insurance, Securities and Banking.
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- Recorded state
- District of Columbia
- Bond type
- Money Transmitter / Payment Services Bond
- Category
- Financial services
What this bond does
The primary purpose of this surety bond is to protect the public and the District of Columbia by ensuring that money service businesses maintain the financial stability and integrity necessary to operate. It functions as a guarantee that the licensed provider will adhere to state-specific laws and regulatory obligations governing transactional business models.
- Who needs it
- This bond is intended for individuals or companies applying for or maintaining a Money Transmitter License in the District of Columbia. Applicants must act as non-depository financial institutions, such as businesses facilitating payments, issuing payment instruments, or providing money transfer services.
- Who it protects
- This bond protects the District of Columbia financial regulatory authorities and the public against potential losses or non-compliance resulting from the business operations of a licensed money transmitter. It is a financial instrument that supports the regulatory oversight of non-depository institutions authorized by the District.
Your bond option
This is the option on record for this bond.
- Bond optionPurchase Now (opens in a new tab)Continue to our secure checkout partner, Propeller (opens in a new tab).
The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- Bank Charter vs. Money Transmitter License (opens in a new tab)Checked October 18, 2026
Have these ready
- Compile a comprehensive business plan detailing your proposed services and target markets.
- Calculate your tangible net worth to ensure it meets the minimum threshold for licensure.
- Establish a robust internal compliance program addressing anti-money laundering and consumer protection policies.
- Verify the specific bond amount required for your business entity with the Department of Insurance, Securities and Banking.
Questions about this bond
Who must obtain a Payment Service Provider Bond in the District of Columbia?
Any entity seeking a Money Transmitter License to operate as a non-depository money service business within the District must maintain this surety bond.
What is the function of the bond for money transmitters?
The bond acts as a financial guarantee of compliance with state laws and provides security for the District of Columbia against potential operational failures of the money service business.
Does this bond apply to depository banks?
No, this bond is specific to non-depository money transmitters. Depository banks are subject to a different set of federal and state chartering requirements.
Where do I file the bond once it is purchased?
The bond must be submitted to the District of Columbia Department of Insurance, Securities and Banking as part of the overall license application and compliance package.