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Can I accept payments online without violating payment processing laws in Idaho? What are the requirements?

To accept payments online in Idaho, you must comply with the state’s payment processing laws. The following requirements must be met:

  1. Obtain a Payday Loan License: If you are engaging in the business of payday loans, offering or making a payday loan, or arranging a payday loan for a third party lender in a payday loan transaction, you must obtain a license under Idaho Code § 28-46-402 [1.2].
  2. Follow Extended Payment Plan Requirements: If you are a payday lender, you must allow borrowers to enter into an extended payment plan upon request, subject to certain provisions. The plan must be in writing, provide a payment schedule that allows at least four equal payments over a time period of not less than sixty days, and not charge interest or additional fees as part of the plan, except as permitted in Idaho Code § 28-46-413(6) [1.1].
  3. Comply with Banking Business Requirements: If you are an international banking corporation, other than a federal international bank corporation, you must comply with certain requirements to transact a banking business or maintain an office for carrying on a banking business in Idaho. These requirements include being authorized to carry on a banking business and complying with the laws of the country under which you are chartered, furnishing proof as to the nature and character of your business and financial condition, filing certain documents with the director, paying a fee, and obtaining a license. See Idaho Code § 26-1706 [3.1].
  4. Follow Branch Requirements: If you are a bank, you may only maintain a branch as provided for in Idaho Code § 26-301. You must obtain approval from the director to establish and operate a branch for the transaction of your business at any location, and comply with all applicable provisions of Idaho law, the law of the other state, and federal law if you establish and operate a branch in a state other than Idaho [5.1].
  5. Use Customer-Bank Communication Terminals: If you are a bank, you may make available for use by your customers one or more electronic devices or machines through which the customer may communicate to the bank a request to withdraw money, receive or transfer funds, or perform other authorized functions. These devices are designated as a customer-bank communication terminal (CBCT) and must comply with certain limitations and requirements, including providing written notice to the director’s office before any CBCT is put into operation, limiting the functions of the CBCT to certain authorized activities, and providing insurance protection under the bank’s bonding program for transactions involving such devices. See Idaho Code § 26-309 [5.2].
  6. Payment Card Receipts: If you accept payment cards for transactions, you must comply with Idaho Code § 28-51-103, which limits the amount of payment card information that can be printed on receipts provided to the cardholder [2.1].

Based on the above requirements, it is important to ensure that you are properly licensed and comply with all applicable laws and regulations when accepting payments online in Idaho. Therefore, to answer your question, you must obtain a payday loan license if you are engaging in the business of payday loans, offer or make a payday loan, or arrange a payday loan for a third party lender in a payday loan transaction. Additionally, you must comply with the extended payment plan requirements, banking business requirements, branch requirements, use customer-bank communication terminals if you are a bank, and comply with payment card receipt requirements if you accept payment cards for transactions.

I hope this helps!

Source(s):
Jurisdiction

Idaho