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

To accept payments online in Kansas, you must comply with the Kansas Money Transmitter Act and obtain a license from the commissioner. The act requires that you meet certain financial requirements and submit a list of authorized agents. The commissioner may also require fingerprinting of certain individuals [2.1].

To obtain a license, you must file a complete application and pay the nonrefundable application fee. The application must include audited financial statements for each of the two fiscal years immediately preceding the date of the application and an interim financial statement, as of a date not more than 90 days prior to the date of the filing of an application. Additionally, you must meet the following requirements:

  • The tangible net worth of such person shall be at all times not less than $250,000, as shown by an audited financial statement and certified to by an owner, a partner or officer of the corporation or other entity filed in the form and manner prescribed by the commissioner.
  • Such person shall deposit and at all times keep on deposit with a bank in this state approved by the commissioner, cash or securities satisfactory to the commissioner in an amount not less than $200,000.
  • In lieu of the deposit of cash or securities required by this subsection, such person may give a surety bond in an amount equal to that required for the deposit of cash or securities, in a form satisfactory to the commissioner and issued by a company authorized to do business in this state, which bond shall be payable to the office of the state bank commissioner and be filed with the commissioner.
  • Such person shall submit a list to the commissioner of the names and addresses of other persons who are authorized to act as agents for transactions with Kansas residents [2.3].

There are no specific requirements for payment processing laws in Kansas. However, you may need to comply with other laws and regulations, such as the Kansas Prompt Payment Act [1.3] or the Credit Services Organization Act [3.1], depending on the nature of your business.

Therefore, to ensure compliance with all applicable laws and regulations, it is recommended that you consult with a legal professional.

I hope this helps!

Source(s):
Jurisdiction

Kansas