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

To accept payments online in Virginia, you must comply with the payment processing laws in the state. The requirements for accepting payments online may vary depending on the type of payment and the entity accepting the payment. Here are some relevant sections of the Virginia Code:

Direct payment permits

If you are a person who uses taxable communications services within the Commonwealth, you may pay any tax levied by this chapter directly to the Commonwealth and waive the collection of the tax by the communications services provider. However, you must apply to the Tax Commissioner and obtain a direct payment permit [2.1].

License required; exception

If you engage in the business of selling money orders or engage in the business of money transmission, you must obtain a license issued by the Commission [5.1].

Improper use of payment device numbers

No person that accepts payment devices for any purpose shall print on any receipt provided to the holder of the payment device (i) more than the last four digits of the payment device number or (ii) the expiration date. For transactions in which the sole means of recording the person’s payment device number is by handwriting or by an imprint or copy of the payment device, no receipt, other than the one original, shall display the information prohibited in subsection A [3.1].

Based on the above sections of the Virginia Code, it is important to obtain the necessary permits and licenses before accepting payments online. Additionally, it is important to provide customers with sufficient information to identify the items paid and to promptly notify the bank of any unauthorized payments. Finally, it is important to ensure that payment device numbers are not improperly used or displayed on receipts.

Source(s):
Jurisdiction

Virginia