Texas Money Services Business Bond Overview
- Purpose: To hold money services businesses financially responsible for upholding license rules
- Who Needs It: Licensed money transmitters and currency exchangers in Texas
- Regulating Body: The Texas Department of Banking
- Bond Amount: $2,500 for currency exchange, $100,000+ for money transmission
- Minimum Price: $100 for currency exchange, $1,000 for money transmission
What Is a Texas Money Services Business Bond?
A Texas money services business (MSB) bond is required for all licensed currency exchangers and money transmitters in the state.
This type of surety bond protects money transmission and currency exchange clients and the state if an MSB breaks industry or state laws and regulations.
What Are the Bond Coverage Requirements?
Your Texas money services bond amount will vary depending on your business type and volume:
- Currency exchange companies: $2,500 bond
- Money transmission companies: $100,000 bond or the average daily money transmission liability (up to $500,000), whichever is greater
Note: Cryptocurrency kiosk operators are considered money transmitters, however, our surety markets do not currently issue these bonds for crypto-based clients.
How Much Do Money Services Business Bonds Cost in Texas?
$100,000 Texas money transmission bonds start at $1,000 for highly qualified applicants. Your exact rate will be a small percentage of the total bond amount based on personal credit and financials.
The $2,500 currency exchange bond typically costs $100–$250. Select the bond you need below and apply for your quote in minutes.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Texas Money Transmission Bond Work?
This type of license bond creates a legal contract between the MSB owner, the Texas DOB and a surety provider.
| Bond Party | Description |
|---|---|
| 1) Principal | The money services business owner(s) |
| 2) Obligee | The Texas Department of Banking |
| 3) Surety | The issuing surety provider |
As the bond principal, you are responsible for upholding your obligation to the Department of Banking. Otherwise, you become personally liable for bond claims up to the bond amount.
How Do I Get a Money Transmission or Currency Exchange Bond in Texas?
You can start the bonding process today by submitting an online application. We’ll provide a quote for your Texas MSB bond in one business day or less.
Once you approve your quote, you can purchase it online anytime. The surety will upload the bond form directly to your NMLS account. Log in to your account and authorize the surety to file the bond on your behalf.
After authorizing the surety, you will be officially bonded and can proceed with your license application or renewal.
How Do I Renew My Money Transmission Bond?
Texas money transmission and currency exchange bonds expire after one calendar year. Just pay for your renewal premium when prompted by the surety to extend your term for another year.
How Can I Update My Bond Information?
If your bond amount needs to be increased or information on the original form needs updated, contact your surety agency with the details. If you purchased your bond from us, email the change requests to [email protected].
Our experts will determine if you need a new bond form or if we can amend your existing bond using a rider document.
How to Get a Money Transmission Business License in Texas
First, make sure you registered as a money services business (MSB) with FINCEN and registered with the Texas Secretary of State.
Then, you can purchase your surety bond and begin the online license application process through NMLS. This is a lengthy process, so make sure you complete all steps and materials using the provided NMLS checklist.
How Much Does It Cost to Get a Texas Money Transmission License?
Texas is one of the more expensive states in which to register as a money transmission business. The license costs include the following:
- Application Fee: $10,000
- NMLS Processing Fee: $120
- Surety Bond Premium: $1,000+
You’ll also have fees for credit reports and background checks for all control persons included in the application expense.
How to Get a Texas Currency Exchange License
There is a separate license application form and process if you only engage in currency exchanging. Complete the full application packet, including all attachments and fee payments, and mail it to the DOB using the address below.
Texas Department of Banking - Corporate Activities Division
2601 North Lamar Blvd., Austin, TX 78705-4294
