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Can I accept payments online without violating payment processing laws in North Carolina? What are the requirements?
To accept payments online in North Carolina, you must comply with the applicable laws and regulations. One relevant law is NCGS 53-214, which states that any North Carolina bank that is controlled by a bank holding company that is not a North Carolina bank holding company shall be subject to all laws of this State and all rules and regulations under such laws that are applicable to North Carolina banks that are controlled by North Carolina bank holding companies. This means that if you are a bank or a bank holding company operating in North Carolina, you must comply with all applicable laws and regulations related to payment processing.
Additionally, NCGS 53-177.1 outlines the requirements for electronic transaction fees. This law allows a licensee to collect from a borrower an amount not to exceed the actual cost of any fees charged by a non-affiliate third party for certain types of transactions, including online debit card payments and disbursement of loan proceeds via electronic payments to the borrower’s account at a financial institution or financial services company.
Furthermore, NCGS 25-4A-202 outlines the requirements for authorized and verified payment orders. A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency. If a bank and its customer have agreed that the authenticity of payment orders issued to the bank in the name of the customer as sender will be verified pursuant to a security procedure, a payment order received by the receiving bank is effective as the order of the customer, whether or not authorized, if (i) the security procedure is a commercially reasonable method of providing security against unauthorized payment orders, and (ii) the bank proves that it accepted the payment order in good faith and in compliance with the security procedure and any written agreement or instruction of the customer restricting acceptance of payment orders issued in the name of the customer.
In summary, to accept payments online in North Carolina, you must comply with the applicable laws and regulations, including NCGS 53-214, NCGS 53-177.1, and NCGS 25-4A-202. It is important to ensure that any fees charged for electronic transactions are reasonable and comply with the requirements outlined in NCGS 53-177.1.
Jurisdiction
North Carolina