To obtain a money transmitter license, every state requires a surety bond. Depending on your state, this license may be called money remitter, money services business, check casher, or sales of check license.

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.

How Much Will the Bond Cost?

The cost of the bond, the “premium,” depends largely on the bond amount and the applicant’s financial status. The state requiring the bond determines the amount. At Surety 1, we will find you the lowest quote for your bond, starting at only 1.5% of the bond amount.

 

Money Transmitter Bond

In order to get your money transmitter’s business license, you’ll need a bond.

• Required by: Ohio Superintendent of Financial Institutions
• Minimum bond amount: $300,000
• Maximum bond amount: $2,000,000
• Valid: 1 year-renewable

The Ohio Superintendent decides the bond amount.

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.

Under the conditions of the bond, the money transmitter must:

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). The registration process must be completed by the Bank Secretary Act (BSA) e-filing system. Learn more at Ohio.gov.