Ohio Money Transmitter Bond

An Ohio money transmitter bond is a type of surety bond required by the Ohio Money Transmitters Act (OMTA) for any person or business that transmits money within the state. The license is managed by and the Nationwide Mortgage Licensing System (NMLS). The bond amount is $300,000 and the cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get an Ohio Money Transmitter Bond

At Surety1.com we make it easy to obtain this surety bond. All state money transmitter bonds can be applied for with one application. The process is:

1. Complete the easy to navigate and secure online application. ¹
2. Provide financial disclosures and additional underwriting information as requested by your Surety1 agent.
3. Review the free, no obligation quote from one of Surety1’s professional surety bond agents.
4. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Ohio money transmitter bond will be uploaded to the NMLS.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.}
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

Who Needs a Money Transmitter License?

Any person, regardless of the location of that person, its facilities, or its agents, who receives directly or indirectly and by any means, money, or its equivalent for transmission from a person located in this state must obtain an Ohio money transmission license before engaging in the business of money transmission:

• This includes businesses and individuals who receive and transmit money (or its equivalent) from residents within the state, regardless of their location.
• Examples: Money service businesses, check cashers, money orders issuers, currency exchangers, payment processors, and even some cryptocurrency businesses.
• Cryptocurrency businesses: Buying or selling cryptocurrency as a business generally requires an Ohio money transmitter license and thus a bond.
• Online money transmission: If you facilitate online money transfers for Ohio residents, you likely need a bond.
• Check cashing services: These businesses typically need a money transmitter license and bond in Ohio.

This license authorizes the following activities

• Non contracted bill pay
• Issuing and/or selling drafts
• Selling prepaid access/stored value
• Electronic Money Transmitting
• Foreign currency dealing or exchanging
• Issuing money orders
• Issuing prepaid access/stored value
• Issuing traveler’s checks
• Other-Money Services
• Selling money orders
• Selling traveler’s checks
• Virtual/Crypto-currency
• BTMs/Cryptocurrency ATMs*

Why Do I Need This Bond?

A surety bond is made to protect the public. In basic terms, it guarantees your business will adhere to all laws and requirements in your industry. In the event your business conducts unlawful acts, a consumer of your services may file a claim on the bond.

Nearly any company that offers payment services requires a money transmitter bond. Due to a history of fraudulence and inaccurate money transmissions, state agencies now require this bond to protect consumers. While this bond does not protect the business owner, it offers proof that your business handles clients’ money responsibly.

This bond guarantees compliance with Chapter 1315 of the Ohio Revised Code Annotated along with other laws of Ohio. The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.

Prerequisites for Licensure

1. Have a net worth of at least $500,000
2. Not have any suspended payments
3. Run their business legally
4. Be a legally established business entity in Ohio
5. Allow the superintendent to make observations

 Money Transmitter License

These are additional details about the licensing process that you should be aware of. (Only the bond is handled at Surety1, but this information will help you get your license.)

License application requirements:

• Applicants must provide their legal name and residential address.
• Information such as the business location and the business URL must be given on the application.
• A notary public must witness all signatures on the license application.
• There is a non-refundable license filing and investigation fee which is required by the obligee, not the surety company.

The license application can be filled out using an electronic system referred to as NMLS. Although, for businesses that are not conducting multi-state businesses or do not want to use the electronic application system can also have access to other application forms. Money transmitters in Ohio must also register as a money services business (MSB) with the Federal Crimes Enforcement Network (FinCEN). For licensing questions, Contact Ohio Division of Financial Institutions licensing staff by phone at (614) 728-2636.

Ohio Division of Financial Institutions participates in the Multistate Money Services Businesses Licensing Agreement Program (MMLA), which creates a more efficient money service business licensing process among state regulators. If your company is seeking money transmitter licensure in more than five (5) states, participation in the MMLA may be right for you. See the Multistate MSB Licensing Agreement Program page of the NMLS Resource Center for more information.

Visit our State-by-State Guide to Money Transmitter Bonds