Texas Money Transmitter Bond |
AmeriPro Surety Bonds | 844-589-9732
Texas Money Transmitters
As with elsewhere in the country, Texas money transmitters engage in the following business transactions:
They may provide:
- Money orders;
- Traveler’s check;
- Cash checks;
- Service as a bill and utility payment center;
- A mechanism for transferring cash from one person to another
* Currency exchange
Texas money transmitters are overseen by the Texas Department of Banking.
Texas Money Transmitter Bond: Amount Required
In order to be licensed as a money transmitter, a Texas money transmitter bond is required.
The surety bond amount is determined as follows:
- It is the greater amount of $300,000;
- 1% of the money transmitter’s yearly or projected yearly money transmitter dollar volume amount within the state of Texas;
- With a maximum surety bond required in the amount of $2,000,000.
In other words, the Texas money transmitter bond amount required will be a minimum of $300,000 and a maximum amount of $2,000,000.
The Texas commissioner may increase the amount of surety bond required.
Texas Money Transmitter Bond: Its Purpose
The purposes of a Texas money transmitter bond is to protect the consumer from acts of criminal theft, fraud, and other acts of malfeasance committed by a money transmitter company, or its employees, officers, and managers, in their duties as money transmitters.
Of note, the bond does not protect the money transmitter at all.
Rather, it is a guarantee that purchased by the Texas money transmitter business on behalf of consumers in the state.
Texas Money Transmitter Bond: Premium
While this Texas surety bond has an amount ranging from $300,000 to $2mm, applicants, of course will only pay a small percentage of the fee.
Accordingly the Texas money transmitter bond’s premium is determined by:
- The amount of the surety bond purchased;
- The applicant financial statements;
- The applicant’s credit score.
Becoming Licensed as a Texas Money Transmitter:
Licensing to become a money transmitter within the state involves:
- A $5,000 application fee for a money exchange license; or a $10,000 application fee for a currency exchange license;
- An application which is notarized where indicated;
- A net worth of the applicant for $100,000 for money transmitters in 4 or fewer locations; and $500,000 minimum net worth for money transmitters who have 5 or more locations;
- An extensive criminal background check;
- The surety bond in an amount required as discussed above.
About AmeriPro Surety Bonds
AmeriPro Surety Bonds provides surety bonds of all types — contractor, license and permit, court and fiduciary throughout Texas.
We appreciate the fact that you have chosen our agency for your surety bond needs.
You will see that not only do we with you, we work for you as well.