The Texas Department of Banking (TDOB) works to provide a safe, sound, and competitive financial services system in the state, which includes chartering and licensing money services businesses.
A money transmitter is a money services business that must be licensed in the state of Texas. Money transmitters issue or sell prepaid access cards and instruments such as checks, money orders and traveler's checks. They also receive money for transmission, provide third-party bill-paying services, transport currency, provide accelerated payment programs, and provide currency exchange.
The Department protects consumers by making sure the business conducts business properly, and avoids money laundering, terrorist funding, and financial crimes. A part of the licensing process includes obtaining a security, such as a surety bond.
The Texas Department of Banking is the obligee that is requiring a security. The security can be an irrevocable letter of credit, a deposit, or a surety bond. The surety bond must be in the amount of $300,000 or an amount equal to one percent of the license holder's total yearly dollar volume of money transmission business in the state. For new applicants, the amount is their projected total volume of business for the first year, up to a maximum of $2 million.
The Commissioner may increase the bond amount up to $2 million.
Texas money transmitters must pay a $10,000, non-refundable filing fee. Failing to submit the fee with the application will result in the application being returned. They must also have a notarized Signature Page, security, financial statements, and if applicable, a background investigation report.
A minimum net worth of $100,000 is required if there are four or fewer locations, and $500,000 if there are five or more locations. If the business provides services or products over the internet, or offers a repaid access card or similar product, the bond amount is $500,000. The Commissioner may increase the net worth to a maximum of $1 million.
Background checks must be conducted on each applicant, control shareholders, principals of the applicant, and responsible individuals.
The premium that you pay for a Texas Money Transmitter Surety Bond is dependent on credit and the bond amount required. Our rates start at 1.5% of the bond amount with good credit. SuretyGroup.com's Surety Bond Specialists can provide you with a free quote that fits your specific needs.
Texas money transmitter applicants must apply for their license through the NMLS.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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