An ARC Bond is not a state or a federal bond requirement but is required by a private obligee.
ARC Stands for Airline Reporting Corporation
Every year, thousands of agencies increase their bottom line by adding agent service fees to transactions or by purchasing high-commission travel products through ARC. To have the ability to use the ARC services your travel agency must obtain a ARC Bond.
What is the bond amount required by the ARC ?
Any person desiring to become an ARC Agent must submit a
Bond, in the minimum amount of $20,000 before
the agency may be included on the ARC Agency List
The maximum amount of the Bond,
that shall be maintained by each Agent shall be $70,000.
Always check with the ARC to make sure you are applying for the right bond amount
How are ARC bonds underwritten ?
A ARC Bond is underwritten like any other surety bond. The Surety will review your personal as well as your business financials to determine your surety credit. Depending on your bond amount underwritten is usually performed within 24 to 48 hours. The cost of the surety bond varies for each surety company as well as your financial position.
We have a wide range of markets able to handle your bonding requests.
Travel agents are required in Florida and California to also purchase a seller of travel bond. The bond amount can be anywhere between 10,000 to $50,000 always check with the obligee to make sure you our applying for the right bond type and amount.
I hope this has helped you with