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Ohio Money Transmitter Bond
Those involved in the transmission of money in Ohio must be licensed with the Ohio Division of Financial Institutions (DFI), and are required to secure a minimum $300,000 surety bond. Jet provides the Money Transmitter Bond as a third-party guarantor of compensation should you commit acts that are in direct violation of the DFI’s regulations and state’s laws, leading to financial loss.
With Jet Insurance Company you can set up an account for all your organizations surety bond needs for any state. Save on costs and effort by switching to Jet.
What Is the Bond Limit and Cost of the Ohio Money Transmitter Bond?
After reviewing your application details, the bond limit is determined by the Ohio Division of Financial Institutions with the minimum amount being $300,000 and the maximum being $2,000,000. Rates start at $120 monthly or for $1,200 a year
| Bond Limit | Monthly | Annual |
|---|---|---|
| $300,000 | $120 | $1,200 |
| $750,000 | $300 | $3,000 |
Our monthly option is a great choice, especially with the higher bond limit. Lock in a long-term rate and don’t worry about making a renewal payment—your bond will stay active as long as Jet receives payments and until you are ready to cancel!
Why Is the Money Transmitter Bond Required by the Ohio Division of Financial Institutions?
The DFI is committed to protecting Ohio’s people from fraudulent actions of various financial-related businesses. To do this, the DFI creates and enforces regulations for these businesses which requires licensees to complete a thorough application process and obtain a surety bond to show their compliance.
Money transmitters are among those regulated by the DFI, with the license bond being a mandatory requirement. Surety companies, like Jet, are utilized by the DFI to supply the bond as an assurance that reimbursement is readily available when someone experiences financial loss while working with a money transmitter.
Those exempt from the Ohio Money Transmitter Bond requirement, under the Ohio Revised Code Section 1315.02, are as follows:
- US government entities
- The US postal service
- Any state, or political subdivision of a state, within the US
- Credit unions, banks, and savings and loan associations
- Contractors completing electronic funds transfers of government benefits for the US, any US entity, or any political subdivision of the US
- Someone solely delivering payroll money for employers to employees by check or direct deposit
- Someone solely accepting prepayment from a person for future purchases of said person’s services or goods
- Real estate, licensed securities, mortgage, or insurance brokers or agents
- Someone solely receiving money as an intermediary to close a property sale or loan
- Sellers of retail goods and services solely receiving money to be delivered on a credit card account to a credit card used for purchases from that retailer
- Someone else classified by the Superintendent of the DFI as not fitting the intended money transmitter regulations
The Ohio Division of Financial Institutions is part of the Multistate Money Services Businesses Licensing Agreement Program, which allows for more licensing efficiency among state regulators when it comes to money service businesses. If you are seeking licensure as a money transmitter in more than five states, being a member of the MMLA may be fitting; Review this page for more information.
How to Apply for the Ohio Money Transmitter Bond With Jet
Applying for a bond has never been easier! We only ask for the information absolutely necessary to get you a bond quote, which includes the bond limit required by the DFI and your social security number (for the soft credit check).
A Jet underwriter will need to conduct a quick review before a rate is provided. If any additional information is needed, such as financial statements, we will notify you. When ready, the rate will be emailed to you and you can purchase it directly online! Once purchased, you will receive an email with a copy of the bond and your receipt.
Can Jet File the Money Transmitter Bond for Me?
Yes, but you must first authorize us access in the Nationwide Multistate Licensing System (NMLS). Even though the Division of Financial Institutions regulates the license and bond, most “paperwork”, including the bond, is done electronically through the NMLS. Follow these NMLS electronic surety bond filing steps to ensure a smooth process.
Once you have completed payment and authorized Jet as your surety company in the NMLS, we will make sure the bond gets on file. Check out the image below for the general step-by-step bond filing process through the NMLS.
Can I Cancel My Ohio Money Transmitter Bond and Get a Refund?
You can cancel with Jet at any time! Getting a refund will depend on a few factors. Of course those paying monthly are on a pay-as-you-go plan, meaning there is no money to be refunded. However, those who paid for the bond up front may receive a partial refund.
When ready to cancel, email us at [email protected], and we will proceed with the cancellation request. The bond will remain active for at least 30 days after the DFI receives notice of the intent to cancel from Jet. During these 30 days, you and Jet are still liable under the bond, so that time must be taken into account for any refunds. If applicable, Jet will reimburse you once the 30-day cancellation period has ended.
How to Renew the Money Transmitter Bond in Ohio
Good news - the bond is continuous! This means that the bond will remain active as long as you make your renewal payments. Although, if you pay monthly, you don’t even have to worry about renewal payments! Your bond will stay active with Jet so long as we continue to receive payments from your preferred account. If you paid for a one-, two-, or three-year bond term up front, Jet will make sure to send you an invoice via mail and email prior to the bond’s renewal date.
Any changes to the bond must be made by Jet in the NMLS, so let us know if your bond limit increases or decreases or if you need anything else modified on the bond.
How Does a Licensee Avoid Money Transmitter Bond Claims?
By following the Ohio Revised Code Chapter 1315, you can ensure your compliance with regulations and typically avoid disciplinary action, including a bond claim. For example, don’t accept money from someone who expects you to transmit it to another person and then fail or refuse to do so. Makes cents, right?
The Ohio Division of Financial Institutions may bring suit on their own accord, on behalf of a claimant, or encourage the claimant to bring suit themselves if you are found in violation of the Code. The DFI can take other actions, including issuing a cease and desist order, suspending or revoking your license, and charging you with civil penalties. You are able to request a hearing when given notice of any of the previous instances where you will be required to address and remedy the issue.
Jet recommends that you be responsive and work alongside the aggrieved person(s) to try and come to a settlement before the court is involved and more serious penalties are inflicted, such as a bond claim.
What Happens if I Get an Ohio Money Transmitter Bond Claim?
Jet provides claims defense, even though the DFI and courts have already conducted their own investigations. Jet will request that you provide all documentation surrounding the claim, including court documents, so we can do our best to avoid paying any faulty claims.
If a claim is valid, Jet will need to make payment to the claimant(s). It is important for you to know that bonds differ from traditional insurance. Surety bonds only provide payment when a licensee has committed fraudulent or negligent actions and is unable or unwilling to right their wrongs. Jet provides the payment to the claimant up front, but you are then liable to reimburse Jet to restore the bond to its full capacity and coverage.
