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

To accept payments online in North Dakota, you must comply with the state’s payment processing laws. The requirements for accepting payments online in North Dakota are as follows:

License Requirement

If you are engaging in the business of money transmission, you must obtain a license as provided in NDCC Section 13-09-01 [7.1].

Payment Terms

The purchasing agency and the vendor may negotiate payment terms for all commodities and services procured. If a date for payment is not specified by the contract, payment must be made pursuant to section 13-01.1-01 [1.1].

Prohibited Acts and Practices

It is a violation of NDCC Section 13-09-25 to engage in any unfair or deceptive practice toward any person, including making any false or deceptive statement or representation [7.2].

Acceptance of Checks

A person may not require, as a condition of acceptance of a check or other draft, that the person presenting the check provide a credit card number; nor may the person accepting the check or other draft record the credit card number. A person may request the person presenting the check to display a credit card as evidence of creditworthiness or as additional identification; however, only information concerning the type and issuer of the credit card may be recorded pursuant to NDCC Section 51-14.1-03 [6.2].

Credit Card Payment

A collection agency may collect or attempt to collect, in addition to the principal amount of a claim, a transaction fee for processing a credit card payment in an amount that does not exceed two and one-half percent of the payment amount if: 1. The transaction fee is not prohibited under section 13-05-02.2; 2. A no-cost payment option is available to the debtor; and 3. The collection agency discloses the no-cost option to the debtor at the same time and in the same manner as the debtor’s credit card information is taken [2.1].

Based on the above, it is important to obtain a license if you are engaging in the business of money transmission. Additionally, you must not engage in any unfair or deceptive practices and must comply with the requirements for accepting checks. You may also collect a transaction fee for processing a credit card payment as long as it does not exceed two and one-half percent of the payment amount and a no-cost payment option is available to the debtor.

Please note that this response is based solely on the context documents provided. If you require more specific information, it is recommended that you consult with a legal professional.

Source(s):
Jurisdiction

North Dakota