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

To accept payments online in Minnesota, you must comply with the state’s payment processing laws. Here are the requirements you need to consider:

Register with the Minnesota Department of Commerce

If you are a payment processor or a money transmitter, you must register with the Minnesota Department of Commerce [1.1].

Obtain a Money Transmitter License

If you are a money transmitter, you must obtain a license from the Minnesota Department of Commerce [1.1].

Comply with the Electronic Funds Transfer Act

If you are accepting payments through electronic funds transfer, you must comply with the Electronic Funds Transfer Act [1.1].

Comply with the Uniform Commercial Code

If you are accepting payments for the sale of goods, you must comply with the Uniform Commercial Code [3.2].

Provide written disclosures

If you are executing a retail installment contract, you must provide the buyer with a written disclosure that sets forth the information required by law and obtain the buyer’s signature on it [3.2].

Limit surcharges on credit cards

If you impose a surcharge on a purchaser who elects to use a credit card in lieu of payment by cash, check, or similar means, you must inform the purchaser of the surcharge both orally at the time of sale and by a sign conspicuously posted on the seller’s premises, and the surcharge must not exceed five percent of the purchase price [2.2].

Conclusion

To accept payments online in Minnesota, you must register with the Minnesota Department of Commerce, obtain a Money Transmitter License if you are a money transmitter, comply with the Electronic Funds Transfer Act and the Uniform Commercial Code, provide written disclosures if you are executing a retail installment contract, and limit surcharges on credit cards to five percent of the purchase price. [1.1][2.2][3.2].

Source(s):
Jurisdiction

Minnesota