Illinois Currency Exchange Bond

An Illinois currency exchange bond protects customers and the State by guaranteeing your currency exchange follows Illinois law and pays valid claims, including obligations tied to money orders. Under 205 ILCS 405/5 a minimum $25,000 bond is required, and the Department may set a higher amount based on outstanding liabilities. Premiums typically run 1–5% of the bond amount per year. Apply online, keep coverage continuous for renewal, and know that approval is possible even with challenged credit.

A currency exchange bond is a compliance guarantee for Illinois community and ambulatory currency exchanges. It helps ensure you follow statute, pay required fees, and honor obligations to the public. If you violate the law or fail to pay a valid claim, the surety may compensate harmed parties up to the bond amount, and you must reimburse the surety. In short, it protects customers and the State—not the business. For a plain‑English primer on how surety works, see our page on surety bonds. You’ll file the bond with the State as part of licensing and keep it active for renewals, preventing lapses in good standing.

Most applicants pay 1–5% of the bond amount per year. At the statutory minimum, a $25,000 bond might cost about $250 at 1% or around $1,250 at 5%. Because 205 ILCS 405/5 authorizes the Department to set higher amounts when outstanding liabilities are larger, your required bond could be higher, and premiums scale accordingly. Credit quality, financials, time in business, and experience affect pricing. For statewide context, visit Illinois surety bonds. Applicants with strong credit often qualify at the lower end, while newer businesses or those rebuilding credit can expect higher quotes that reflect risk.

Start early so your bond is ready when you apply or renew. The steps are simple: complete a short quote form, receive approval, pay the premium, and file the bond with the State. Begin with the online application, review your quote, e‑sign, and save proof for your license file. Set calendar reminders a few weeks before renewal to keep coverage continuous. Keeping digital copies of your bond and approval letter in your compliance folder speeds future renewals and inspections. If your license covers multiple locations, label each bond document by location to avoid filing mix‑ups.

Yes. Underwriters review the whole file—credit history, business finances, management experience, and explanations for past issues. Higher‑risk profiles may see higher rates, but many applicants still qualify. Providing bank statements or tax returns helps, and improving credit can support better pricing at renewal. For common eligibility and pricing questions, see more about surety bonds. If you’ve resolved past issues, ask your agent to time an updated review before renewal to pursue improved pricing. Some applicants add a co‑owner with stronger credit or provide additional financial statements to strengthen the file.

Use these quick answers when preparing your application and aligning your bond term with license renewal timelines. These summaries focus on the rules Illinois enforces and the documents you’ll likely need to keep on hand. They are not legal advice, but they can help you prepare documentation and timelines before you contact regulators.

Is a bond required to get licensed as an Illinois currency exchange?

Yes. A bond is part of licensing for both community and ambulatory currency exchanges. You’ll file it with the State and must maintain continuous coverage to keep your license in good standing. The requirement continues at annual renewal, so align your bond term with your license cycle and retain proof of coverage. For procedures, forms, and contact details, use the official portal: IDFPR — Currency Exchange & Money Transmitters. If your bond lapses, contact your surety and the Department immediately to restore compliance and prevent interruptions.

What bond amount is required?

Illinois law sets the minimum at $25,000, but the Department may require a higher amount to match outstanding liabilities—including obligations tied to money order guarantees. See 205 ILCS 405/5 for the statutory rule, and confirm your final bond amount with regulators before issuance so your filing is accepted without delay. If your business model or volume changes, reassess the amount before renewal. Document your liabilities and transaction volumes so you can explain how the amount you request matches operational risk.

What does the bond cover?

The bond protects customers and the State if a licensee violates law or fails to pay valid claims. Examples include unpaid fees or failure to honor a money order guarantee. If the surety pays a claim (up to the bond limit), the licensee must reimburse the surety. Treat the bond as a backstop and maintain strong day‑to‑day controls. Regular internal audits and reconciliations reduce the chances of claims and demonstrate good‑faith compliance to underwriters.

Is this the same as a money transmitter bond?

No. Currency exchanges operate under the Community Currency Exchange Act, while money transmitters are regulated under the Transmitters of Money Act, with distinct licensing and bonding requirements. Identify your business model accurately so you follow the correct statute, bond amount, and application path.

Illinois Department of Financial and Professional Regulation. (n.d.). Currency Exchange & Money Transmitters.
https://idfpr.illinois.gov/dfi/ced/ced-main.html

Illinois General Assembly. (n.d.). 205 ILCS 405/5 — Bond requirements for community currency exchanges.
https://www.ilga.gov/Documents/legislation/ilcs/documents/020504050K5.htm

Illinois General Assembly. (n.d.). Transmitters of Money Act.
https://ilga.gov/Documents/legislation/ilcs/documents/020506570K30.htm

Lance Surety Bonds. (n.d.). Illinois surety bonds.
https://www.lancesuretybonds.com/bonds-by-state/illinois

Lance Surety Bonds. (n.d.). Online application.
https://www.lancesuretybonds.com/surety-bond-quote

Lance Surety Bonds. (n.d.). What is a surety bond?
https://www.lancesuretybonds.com/learn/what-is-a-surety-bond

Lance Surety Bonds. (n.d.). Surety bonds FAQs. 
https://www.lancesuretybonds.com/learn/faqs