Oregon Money Transmitter Bond

Oregon Money Transmitter Bond

The Department of Consumer and Business Services (DCBS), Division of Financial Regulation, requires the Money Transmitter Bond for Oregon businesses involved in money transmission services. The bond is a security device, as described in Oregon Revised Statutes (ORS) 717.225, which acts as a financial guarantee for the public and the DCBS when dealing with money transmission businesses.

APPLY FOR MONEY TRANSMITTER BOND

The DCBS oversees regulation of money transmission businesses, but the Nationwide Multistate Licensing System (NMLS) is where all documentation, including the surety bond, must be submitted. Jet works with both agencies to make sure your bond is filed and managed efficiently.

The minimum limit for the Money Transmitter Bond is $25,000. Each additional location will add $5,000 to the bond, up to a maximum amount of $150,000. The surety bond is an additional requirement to the licensee showing a net worth of at least $100,000, along with $25,000 for each location.

How Much Does the Money Transmitter Bond Cost With Jet?

Jet’s pricing starts at $25 monthly or $250 annually. The bonding limit requires a soft credit check and review of license history will determine your bond rate. Because we write directly to Jet Insurance Company, we eliminate broker fees frequently charged by other surety carriers. The chart below shows Jet’s pricing for someone with good credit across several bonding limits.


Oregon Money Transmitter Bond Cost
Bond Limit Monthly Annual
$25,000 $25 $250
$35,000 $35 $350
$50,000 $50 $500
 
 
 

Monthly installments are not offered by other carriers for the Money Transmitter Bond, but Jet’s goal is to help you get coverage in the most feasible way for your business. The monthly payment option lets you never have to worry about bond renewals again, set it and forget it. 

What Is Classified As a Money Transmission Business?

Money transmission, defined in Oregon Statute ORS 717.200, is the act of selling or issuing checks, money orders, drafts, or traveler’s checks in exchange for compensation for the purpose of money transmission via wire, electronic, and facsimile transfer. In the State of Oregon, a person is not permitted to perform money transmission business without first obtaining the Money Transmitter License and Bond.

Exemptions from the money transmitter license and bond, listed in ORS 717.210, are as follows:

How Is the Oregon Money Transmitter Bond Filed?

All you have to do is log in or create an account in the NMLS, click “Surety Bonds”, and then select “Surety Entity Access”. Jet will take care of the rest for you! The NMLS sends you notifications throughout the bond process to ensure smooth sailing. The graphic below shows the NMLS electronic surety bond filing process from start to finish. 

All handling of the license bond, including bond riders, renewal, and cancellation, is done by Jet through the NMLS. Changes to your business don’t need to be stressful, just contact Jet to take care of bond management.

Is It Possible To Cancel the Money Transmission Bond and Be Refunded?

Jet allows you to cancel the bond at any time during your license and provide a prorated refund for the time left on the bond. All that is needed from you is a written notice, and we will request cancellation in the NMLS. The bond will remain on file for 30 days once requested in the NMLS which Jet does need to take into account when calculating the prorated refund.

Other insurance carriers are likely to charge you cancellation fees and may keep “minimum earned” premiums, meaning even if your bond is only on file for one week they keep the full amount you paid for the bond, or a large portion of it.

In addition, Jet's monthly payment plan allows you to request cancellation and 30 day later the payments will automatically stop coming out of your account, no waiting on a refund!

How Are Money Transmitter Bond Claims to be Avoided?

Provisions of ORS 717.200 to 320 are meant to protect the public from fraudulent money transmitter actions such as transferring funds incorrectly or not at all.

Claims can be brought on by the claimant themselves or by the DCBS on behalf of the damaged party. The DCBS will turn to civil court before it reaches the point of a bond claim, in hopes of resolving the dispute. However, Oregon Statute 717.900 states that civil penalties can cost the responsible party up to $1,000 per violation, or $1,000 for each day the violation continues. Any violation of these statutes is considered a Class A misdemeanor.

At any time, the DCBS has jurisdiction to suspend or revoke the money transmitter’s license in accordance with ORS 717.265. Jet strongly suggests if you, the money transmitter, are on the wrong side of an action and make an error in your dealing to take care of it before the trouble escalates.

What Is Jet’s Bond Claim Process?

The DCBS will look into all complaints and violations before pursuing action on the money transmitter license, but if it reaches the point of a bond claim Jet will conduct further investigation on their own. Jet will request that you supply them with documentation relating to the incident. After a thorough investigation if Jet deems the bond claim valid, we will pay the damaged person or the DCBS. You will still then be held liable to pay back the total amount of the claim.

Insurance policies cover accidents caused by the policyholder and do not require claims to be paid back. Surety bonds, however, act as a line of credit and will pay the damaged party, but the licensee is responsible to pay back the money to Jet.

The bond is to remain in place for up to five years after the license is terminated. If the license has been in good standing, the bond may be reduced or eliminated by the DCBS.

Why Is the Money Transmitter Bond Required in Oregon?

It is important for customers to feel secure when they are working with a business who is transferring funds for them, which is why the DCBS requires the surety bond as a guarantee that damaged parties will be reimbursed. The license bond doesn’t protect you, but it provides customers peace of mind that you will do your due diligence and follow regulations.

How To Get a Money Transmitter Bond With Jet

Jet’s online bond process allows you to get your Money Transmitter Bond in minutes. Competitors require you to submit general information through their application and it could take hours or even days to hear back. Once you pay for the bond in Jet’s system, just select us as your surety company in the NMLS and we do the rest for you! Click the button to get your bond.

APPLY FOR MONEY TRANSMITTER BOND

You will receive a copy for your records immediately and be ready for the NMLS notice to confirm bond filing information. 

What Is the Renewal Process for the Money Transmitter Bond?

With our monthly payment option the Money Transmitter Bond is continuous until cancelled! By making your payment on time Jet ensures your bond will carry on through the renewal with no additional steps to take. The charges will continue to come out of your account to keep the bond on file. If there is a bond increase or decrease, just let Jet know and we will adjust the payments accordingly and update the information in the NMLS for you.

Money transmitters paying on annual terms have a simple renewal process - just pay the amount on the renewal notice and you’re done! Jet will make sure you are notified of renewal with plenty of time to make the payment so your good license status can remain that way.

Oregon Money Transmitter Bond Form