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Can I accept payments online without violating payment processing laws in Texas? What are the requirements?
To accept payments online in Texas without violating payment processing laws, you must comply with the state’s payment processing laws. Here are the requirements you need to follow:
Requirements for Accepting Payments Online in Texas
- Processing Fees: If you accept credit card payments, you may collect a fee for processing the invoice. The fee must be reasonably related to the expense incurred in processing the credit card invoice, not to exceed five percent of the amount of the fee or tax [1.1][2.1][2.2].
- Prohibition of Fees for Paper Checks: You cannot charge an additional fee to the payee because the payee elects to receive the payment by paper check instead of by an automated clearinghouse transaction or other electronic funds transfer [3.1].
- Cancellation and Amendment of Payment Order: If a receiving bank accepts a payment order issued in the name of its customer as sender which is not authorized and not effective as the order of the customer, the bank shall refund any payment of the payment order received from the customer to the extent the bank is not entitled to enforce payment and shall pay interest on the refundable amount calculated from the date the bank received payment to the date of the refund [4.2][4.3].
- Reporting Unauthorized Payment Order: If a receiving bank accepts a payment order issued in the name of its customer as sender which is not authorized and not effective as the order of the customer, the customer is required to exercise ordinary care to determine that the order was not authorized by the customer and to notify the bank of the relevant facts within a reasonable time not exceeding 90 days after the date the customer received notification from the bank that the order was accepted or that the customer’s account was debited with respect to the order [4.2][4.5].
If you follow these requirements, you can accept payments online in Texas without violating payment processing laws.
Source(s):
- [1.1] CREDIT CARD PAYMENT PROCESSING FEE.
- [2.1] REIMBURSEMENT FEE FOR PROCESSING CERTAIN PAYMENTS.
- [3.1] FEE FOR CERTAIN PAYMENTS BY PAPER CHECK PROHIBITED.
- [4.2] UNENFORCEABILITY OF CERTAIN VERIFIED PAYMENT ORDERS.
- [4.3] AUTHORIZED AND VERIFIED PAYMENT ORDERS.
- [4.5] ERRONEOUS PAYMENT ORDERS.
- [2.2] PAYMENT OF FEES OR COSTS BY CREDIT CARD OR ELECTRONIC MEANS.
Jurisdiction
Texas