Texas Money Services Bond

To obtain a Money Transmission License in Texas, Texas requires a Texas Money Services Bond. Every state requires a surety bond to be in the money services industry. Depending on your state, this license may be called money remitter, money transmitter, 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. The Texas Money Services Bond is not in place to protect your business, it is not insurance, it is required to protect the public.

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. Many factors can effect the premium for the bond, with credit worthiness being the main driver in the price of the Texas Money Services Bond.

Money Services Businesses Bond

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

• Required by: Commissioner of the Texas Department of Banking
• Minimum bond amount: $300,000
• Maximum bond amount: $2,000,000
• Valid: 1 year-renewable

This bond ensures the laws of the Texas Financial Code (Title 3, Chapter 15) along with other Texas state laws. The bond stays in effect as long as the license is valid. However, the surety company can cancel the bond at any time by writing the Commissioner a notice of cancellation 30 days before the effective cancellation date. The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.

Money Services Businesses 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:

1. Business plans
2. Surety bond
3. Background checks on applicant and other responsible individuals
4. Prepaid access plan
5. Audited financial statements
6. Interim financial statements
7. List of other states where applicant is licensed, if any
8. Minimum net worth of$100,000 for 4 of less locations and $500,000 for 5 or more locations
9. $2,500 application fee

All licensing fees are required by the obligee, not the surety company.

The license application is completed through the Nationwide Mortgage Licensing System (NMLS). Money transmitters in Texas 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.

How do I apply for a Texas Money Services Bond

At surety1.com we make it easy to apply for your surety bonds:

1. Simply complete our easy to use and secure, online application. ¹
2. Usually within 1 business day you will be contacted by one of our surety bond agents that will walk you through the process for securing a free, no obligation quote. Surety1.com has one, online application, for all states and is licensed in all 50 states to serve your surety bond needs.
3. Sign some paperwork and make payment (All major credit cards accepted).

Once these steps have been completed, our bond will be filed electronically with 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 brokers in the nation. Surety1.com is the premier provider of surety bonds nationwide since 2003 and maintains an A+ rating from the Better Business Bureau.

State-by-State Guide to Money Transmitter Bonds