Texas Money Transmitter Bond

To obtain a Money Transmission License in Texas, Texas requires a Texas Money Transmitter 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 services, check casher, or sales of check license. While the surety bond is a requirement of the Texas Department of Banking, the license is managed via the Nationwide Mortgage Licensing System (NMLS)

Why Do I Need This Bond?

A person or business that engages in the money transmission business must have a money transmission license. Money transmission means

1. Selling or issuing payment instruments to a person located in this state;
2. Selling or issuing stored value to a person in this state;
3. Receiving money for money transmission services from a person located in this state;
4. Includes payroll processing services, and does not include the provision of solely of online or telecommunications services or network access.

In order to obtain the license, you must provide the required surety bond.

Surety Bond Amounts

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

1. For a licensee with a tangible net worth in an amount not greater than 10 percent of the licensee’s total assets, the greater of:
   • $100,000; or
   • 100 percent of the licensee’s average daily money transmission liability in Texas for the most recently completed three-month period, up to a maximum amount of $500,000; or
2. For a licensee with a tangible net worth in an amount greater than 10 percent of the licensee’s total assets, $100,000 surety bond is required.

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 Transmitter Businesses License Requirements

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. Texas Money Transmitter 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, the Texas Money Transmitter 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