Surety Bond Requirements for Money Transmitters in Kansas
Companies applying for a Money Transmitter License in Kansas must post a surety bond before the Kansas Office of the State Bank Commissioner will approve their application through the Nationwide Multistate Licensing System (NMLS).
Your required bond amount is whichever is greater: $200,000, or 100% of your average daily money transmission liability in Kansas over the most recently completed three-month period, capped at $1,000,000. If your tangible net worth exceeds 10% of your total assets, that calculation doesn't apply to you. Your bond stays flat at $200,000 instead.
The license covers selling or issuing payment instruments and stored value, receiving money for transmission, and payroll processing services.
How Much Does a Kansas Money Transmitter Bond Cost?
Expect a starting premium of about 0.75% of your bond amount. On a $200,000 bond, that works out to roughly $1,500 a year. Your rate is determined mostly by your personal credit history. Our surety bond cost guide explains how sureties price these bonds in more detail.
| License Type | Bond Amount | Starting Cost/Year |
|---|---|---|
| Money Transmitter License | $200,000 | $1,500 |
A low credit score does not disqualify you from getting bonded. Through our bad credit bond program, we regularly bond applicants who wouldn't qualify elsewhere. Your premium will likely fall toward the higher end of the range shown above.
Sureties also weigh your financial statements, available assets, and industry experience when setting your final rate.
Complete our online application for a free, no-obligation quote.
Why Do You Need a Money Transmitter Bond in Kansas?
This bond backs your obligation to follow the Kansas Money Transmission Act. If the commissioner determines you've violated the Act, whether that's mishandling customer funds or refusing to cooperate with an examination, the commissioner can pursue enforcement action. Your surety could then be required to pay valid claims up to your bond's full amount.
You are responsible for reimbursing the surety in full for any amount paid out. Maintaining compliance with the Act is the most effective way to avoid a claim.
If you're new to surety bonds, our what is a surety bond page covers the fundamentals.
How to Get Bonded
Bryant Surety Bonds gets you bonded in three steps.
- Complete our online application. It takes just a few minutes.
- Get approved and pay for your bond. We compare your application across 20+ A-rated carriers and issue your bond as soon as you accept a rate.
- We handle the NMLS filing. Your Electronic Surety Bond (ESB) goes directly into your NMLS record.
After you approve your quote, we'll walk you through granting us authority as your surety inside NMLS, a required step before the commissioner will accept the bond.
How Do You Renew Your Bond?
- License term: Kansas money transmitter licenses run on a calendar year and renew annually.
- Renewal fee: Due no later than 60 days before your December 31 expiration date.
- Late window: Submitting in the final 30 days before expiration, or leaving your application incomplete going into that window, triggers a late fee.
- Extensions: For good cause, the commissioner has discretion to extend your renewal deadline.
We send renewal reminders 1 to 2 months before your bond expires, and our agents can help you look for ways to reduce your bond cost.
How To Apply for a Money Transmitter License in Kansas?
Here's what the process looks like:
- Open or update your NMLS account and complete the Company Form (MU1).
- Assemble your documentation: formation paperwork, a Kansas Certificate of Good Standing, a business plan, a flow of funds structure, management and organizational charts, and a list of your permissible investments.
- Confirm you meet the tangible net worth threshold for your company's size (details in the FAQ below).
- Register with FinCEN under the Bank Secrecy Act and have your confirmation number and filing date ready.
- Clear background checks and credit reports for owners, key individuals, and executive officers.
- Authorize your surety in NMLS so we can file your Electronic Surety Bond directly to your record.
- Cover the required fees (below).
The NMLS website provides the full documentation list for this license.
Kansas Money Transmitter Licensing Fees
| Fee | Amount |
|---|---|
| Application fee | $1,750 |
| License registration fee | $0 |
| NMLS processing fee | $120 |
Credit reports and background checks carry their own NMLS fees. The NMLS System Fees page lists current pricing.
Multistate Licensing and Bonding
NMLS consolidates all your state licenses under one company record. Your bond doesn't carry over between states, though. Each state sets its own amount and requires its own Electronic Surety Bond. Georgia, for instance, sets a flat $250,000 requirement, a different amount and a different calculation method than Kansas's volume-based formula.
Bryant Surety Bonds can bond you in all 50 states through a single agency. You won't need to coordinate separate sureties for each state you're licensed in.
FAQ
Do you need permissible investments in addition to the bond?
Yes. Kansas requires you to hold permissible investments worth at least as much as your outstanding money transmission obligations. This is a separate requirement from the bond, not a substitute for it.
How is your net worth requirement calculated?
It's a sliding scale: the greater of $100,000 or 3% of your total assets up to $100 million, plus 2% of anything between $100 million and $1 billion, plus 0.5% of anything above $1 billion. See K.S.A. 9-586 for the exact statutory language.
What happens if your company changes ownership?
You need the commissioner's written approval before anyone acquires control of your company. Approval must be obtained in advance. Notifying the commissioner after the change takes place does not satisfy this requirement.
Does bad credit rule you out?
No. It affects your rate, not your eligibility. We bond applicants across the credit spectrum through our bad credit bond program.
Can you cancel your bond?
Your bond stays in effect until it's cancelled. Kansas's other license types, mortgage and consumer lending among them, require 30 days' written notice to the commissioner before cancellation takes effect. Money transmitter bonds go through the same NMLS-based process.
What happens if you operate without a license?
It can result in criminal charges, not just a fine. Depending on how much you earned from the unlicensed activity, Kansas can charge it as a felony or a misdemeanor. This is separate from any civil action the commissioner may also pursue.
Get Bonded With Bryant Surety Bonds
Bryant Surety Bonds is licensed to issue surety bonds in Kansas under license number 208538577-000.
Questions about getting bonded in Kansas? Call us at 866.450.3412.
