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

Based on the context documents, to accept payments online in South Carolina, you must comply with the state’s payment processing laws. The requirements for payment processing depend on the type of payment service you offer.

Requirements for Deferred Presentment Services

If you offer deferred presentment services, you must obtain a license from the state of South Carolina [1.1]. You must also post your license at each location where you conduct business [1.1].

Requirements for Money Transmission and Currency Exchange

If you offer money transmission and currency exchange services, you must obtain a license from the state of South Carolina [4.1]. However, if you are licensed to offer these services in at least one other state and that state’s laws are substantially similar to South Carolina’s laws, you may be able to engage in money transmission and currency exchange in South Carolina without obtaining a separate license [4.1].

Requirements for Payment Orders

If you accept payment orders, you must comply with the rules for acceptance, cancellation, and amendment of payment orders outlined in South Carolina’s Uniform Commercial Code [2.2][2.4][2.6].

Requirements for Stopping Payment

If you allow customers to stop payment on items drawn from their account, you must comply with South Carolina’s stop-payment order requirements [3.1].

Liability and duty of receiving bank regarding unaccepted payment order

If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for breach of the agreement to the extent provided in the agreement or in this chapter [2.7].

In addition, the following documents provide further information that may be relevant to your specific situation:

  • [2.1] outlines the rules for rejection of payment orders.
  • [2.3] outlines the rules for authorized and verified payment orders.
  • [2.5] outlines the rules for erroneous payment orders.
  • [2.8] outlines the rules for transmission of payment orders through funds-transfer or other communication system.
  • [2.9] outlines the rules for misdescription of intermediary bank or beneficiary’s bank.

If you are unsure about the specific requirements for your business, you should consult with a legal professional.

Note that this response is not exhaustive and there may be additional requirements that apply to your specific situation.

Source(s):
Jurisdiction

South Carolina