A notary public and a Medallion Signature Guarantee both involve identity verification and an official stamp, but that’s where the similarity ends. In the notary vs. Medallion Signature Guarantee comparison, a notary confirms that the person signing a document is who they say they are. A Medallion Signature Guarantee goes further: the financial institution certifies your identity, confirms you have the legal authority to transfer specific securities, and accepts financial liability if the signature turns out to be forged. If a transfer agent asks for a Medallion, a notarization will not do. The reverse is also true.
What Each One Actually Certifies
A notary public is a state-commissioned official who acts as an impartial witness. Their job is narrow: confirm the signer’s identity using government-issued photo ID (or personal knowledge), verify the person is signing voluntarily, witness the signature, and apply an official seal. Notaries make no judgment about whether the document is accurate, legal, or wise. They verify the signer, not the substance. Deeds, affidavits, powers of attorney, and certain contracts commonly need one.
A Medallion Signature Guarantee is a specialized certification used when transferring or selling securities held in physical certificate form, such as stocks, bonds, or mutual fund shares. The issuing institution certifies that your signature is genuine, that you have the legal authority to make the transfer, and that you have the capacity to sign. It then backs that certification with its own money.1Investor.gov. Medallion Signature Guarantees: Preventing the Unauthorized Transfer of Securities
Federal securities regulations require transfer agents to obtain signature guarantees from eligible institutions before processing transfers, and they can reject any request where the guarantor isn’t a member of a recognized Medallion program.2eCFR. 17 CFR 240.17Ad-15 Signature Guarantees Three recognized programs exist (STAMP, SEMP, and MSP), and participating institutions receive a stamp with a letter prefix corresponding to the maximum dollar value that stamp can guarantee per transaction. Prefix levels range from $100,000 at the lower end up to $10 million at the highest. If your securities exceed the institution’s stamp limit, you need an institution with a higher-level stamp.
Why One Cannot Replace the Other
This is where people most often get tripped up. If a transfer agent or brokerage asks for a Medallion Signature Guarantee, bringing a notarized document will get you turned away. The transfer will not be processed. A Medallion stamp also won’t satisfy a requirement for notarization on a deed or power of attorney.3Vanguard. What Is a Medallion Signature Guarantee
The underlying function is different. A notary says “this person is who they claim to be.” A Medallion Guarantee says “this person is who they claim to be, they own these securities, and our institution will pay if we’re wrong.”
Who’s Financially on the Hook
The gap in financial exposure explains most of the practical differences you’ll run into.
Notaries carry surety bonds, but the amounts are modest. Bond requirements are set by each state’s legislature and typically range from $500 to $50,000. These bonds protect the public against a notary’s negligence or misconduct, not against the underlying transaction going bad. A notary who properly verifies identity and witnesses the signature has done their job, regardless of what happens next.
A financial institution issuing a Medallion Signature Guarantee assumes direct financial liability if the signature turns out to be forged or unauthorized. That liability is capped by the prefix level of the institution’s stamp, but on the highest-tier stamps the ceiling reaches into the millions. Transfer agents rely on this guarantee as their primary protection against processing fraudulent transfers.2eCFR. 17 CFR 240.17Ad-15 Signature Guarantees
That difference in exposure is exactly why getting a Medallion Guarantee is harder than getting a document notarized. The institution is putting real money on the line every time it stamps a form.
Where to Get Each and What It Costs
Notary Public
Notary services are widely available. You’ll find notaries at most banks, credit unions, law offices, real estate agencies, and shipping stores. Many employers keep one on staff. Mobile notaries who travel to your location are common in most areas, though they charge more for the convenience.
Fees are regulated by state law and are generally low, typically $2 to $25 per signature. About ten states, including Alaska, Arkansas, and Texas, don’t set a statutory maximum. Remote online notarization sessions may cost more than in-person appointments, and remote notarization is currently authorized in 47 states and the District of Columbia.4NASS. Remote Electronic Notarization
Medallion Signature Guarantee
Medallion Guarantees are only available from financial institutions that participate in one of the three recognized programs. That means certain banks, credit unions, and brokerage firms. Many offer the service at no charge to existing account holders in good standing. If you’re not a current customer, expect to pay $10 to $50 at most banks, or $50 to $100 or more through a third-party provider.1Investor.gov. Medallion Signature Guarantees: Preventing the Unauthorized Transfer of Securities
Bring a valid government-issued photo ID, the completed securities transfer form, and any supporting documents such as account statements or physical stock certificates. Every person whose signature needs to be guaranteed must appear in person. There is no remote or online option. Call ahead for an appointment, since not every branch has a qualified officer available to issue the stamp.
Inheriting Securities
One of the most common situations where people encounter the Medallion Guarantee requirement for the first time is after inheriting securities. When a stockholder dies, the executor or trustee typically needs a Medallion Signature Guarantee to transfer shares into the beneficiary’s name or to liquidate them.
Transfer agents generally require the executor to present letters testamentary (the court document appointing them), a certified copy of the death certificate, valid photo ID, and the completed transfer instruction forms. The Medallion Guarantee then covers the executor’s signature, not the deceased owner’s. This can take time to coordinate, especially if the executor doesn’t already have a relationship with a participating financial institution.
What Can Trip You Up
Getting refused for a Medallion Guarantee is more common and more frustrating than a notary refusal, because fewer institutions offer the service in the first place. The most likely reasons:
- You’re not a customer. Most participating institutions prefer or require an existing account relationship.
- The institution isn’t a Medallion member. Not every bank or credit union participates.
- The transfer value exceeds the stamp limit. If the securities are worth more than the institution’s stamp prefix covers, they may decline.
- Incomplete documentation. Missing transfer forms, expired ID, or inability to prove ownership will stop the process.
If your regular bank can’t help, contact a brokerage firm where you hold investments, or call branches of large national banks to ask whether they offer Medallion services and will serve a non-customer.
One more difference worth planning around: notarizations are typically valid indefinitely once completed, but Medallion Signature Guarantees don’t follow a single standard expiration rule. The transfer agent receiving the documents decides how long it will accept a stamp. Some allow 60 days, others more or less. If you get a Medallion Guarantee and then delay submitting your paperwork, you may have to go back and get the stamp reapplied. Ask the transfer agent about their timeframe before you visit the bank, so the guarantee lines up with your submission.