A notary public and a Medallion Signature Guarantee both involve identity checks and an official stamp, but they answer different questions and protect against different risks. A notary confirms you are who you say you are when you sign a document. A Medallion Signature Guarantee goes further: it confirms your identity, verifies you have the authority to transfer specific securities, and makes the issuing financial institution financially liable if the signature turns out to be forged. That difference is why, in the choice between a notary and a Medallion Signature Guarantee, the two are not interchangeable, and asking for the wrong one will stop your transaction cold.
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 (usually through a current government-issued photo ID), confirm the person is signing voluntarily, and confirm they appear to understand what they’re signing. The notary then witnesses the signature, signs the document, and applies an official seal. Notaries make no judgment about whether the document itself is accurate, legal, or wise. Real estate deeds, affidavits, powers of attorney, and certain contracts commonly require notarization.
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 financial 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 transfer where the guarantor isn’t a member of a recognized Medallion program.2eCFR. 17 CFR 240.17Ad-15 Signature Guarantees
A short way to hold the distinction: 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.”
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, a notarized document will get you turned away. The transfer will not be processed. The reverse is also true: a Medallion stamp will not satisfy a requirement for notarization on a deed or a power of attorney.3Vanguard. What Is a Medallion Signature Guarantee
The confusion partly stems from surface similarity. Both involve identity verification and an official stamp. But the underlying function, and the risk each service absorbs, is different.
How the Liability Gap Explains the Rest
The financial exposure between the two services is where the practical differences come from.
Notaries are required to carry surety bonds, but the amounts are modest. Bond requirements are set by state legislatures 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 fulfilled their duty, 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 Medallion stamp, which ranges from $100,000 at the lower end up to $10 million at the highest.1Investor.gov. Medallion Signature Guarantees: Preventing the Unauthorized Transfer of Securities If the value of your securities exceeds an institution’s stamp limit, you’ll need to find one with a higher-level stamp. Transfer agents rely on this guarantee as their primary protection against processing fraudulent transfers.2eCFR. 17 CFR 240.17Ad-15 Signature Guarantees
That gap in exposure explains why a Medallion Guarantee is harder to get than a notarization. The institution is putting real money on the line every time it stamps a form.
Where to Get Each and What It Costs
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, though they charge more. Fees for standard notarization are regulated by state law and are generally low, typically $2 to $25 per signature. Roughly ten states, including Alaska, Arkansas, and Texas, don’t set a statutory maximum. Remote online notarization sessions may carry higher fees than in-person appointments.
Medallion Guarantees are only available from financial institutions that participate in one of three recognized Medallion programs: the Securities Transfer Agents Medallion Program (STAMP), the Stock Exchanges Medallion Program (SEMP), and the New York Stock Exchange Medallion Signature Program (MSP). That means certain banks, credit unions, and brokerage firms, not all of them. Many institutions 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
When you go, bring a valid government-issued photo ID, the completed securities transfer form, and any supporting documents such as account statements or the physical stock certificates. Every person whose signature needs to be guaranteed must appear in person. Call ahead for an appointment, since not every branch will have a qualified officer available to issue the stamp.
Remote Access: A Big Difference
Notarization has moved significantly toward digital access. Remote online notarization, where you connect with a notary by video call and sign electronically, is now authorized by law in 47 states and the District of Columbia, and federal legislation to authorize it nationwide has been introduced.4NASS. Remote Electronic Notarization
Medallion Signature Guarantees cannot be obtained remotely. The process requires an in-person visit because the institution is verifying identity, confirming authority over the securities, and taking on substantial financial risk. No video call or digital workaround currently exists. If you live far from a participating institution, plan a trip or contact your brokerage to ask whether a partner institution is closer.
When You Might Be Turned Away
A notary can, and sometimes must, refuse service. Common reasons include unverifiable identity when acceptable ID isn’t presented and the notary doesn’t know the signer personally; signs of coercion or confusion; a conflict of interest, such as a personal financial stake or close family relationship; or a request to notarize their own signature.
Getting refused for a Medallion Guarantee is more common and more frustrating, because fewer institutions offer the service at all. Typical reasons: you’re not a customer, and the institution prefers or requires an existing account relationship; the institution isn’t a Medallion program member and simply can’t issue one; the transfer value exceeds the stamp limit; or your documentation is incomplete (missing transfer forms, expired ID, or no proof of ownership). If your regular bank can’t help, try a brokerage where you hold investments, or call branches of large national banks to ask whether they’ll serve a non-customer.
How Long Each Stays Good
Notarizations are typically valid indefinitely once completed. Medallion Signature Guarantees follow no single 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 obtain a Medallion Guarantee and then delay submitting the 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 you can line up the guarantee with your submission.