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

Accepting Payments Online in West Virginia

If you are planning to accept payments online in West Virginia, you must comply with the state’s payment processing laws. The relevant laws are outlined in the following documents:

• WVCO 12-3A-6: Receipting of electronic commerce purchases
• WVCO 32A-2-2: License required
• WVCO 32A-2-4: License application, issuance, and renewal
• WVCO 32A-2-10: Bond

License Requirement

According to WVCO 32A-2-2, a person may not engage in the business of currency exchange, transportation, or transmission in West Virginia without a license issued under this article. For purposes of this article, a person is considered to be engaging in those businesses in this state if he or she makes available, from a location inside or outside this state, an Internet website West Virginia citizens may access in order to enter into those transactions by electronic means.

License Application and Renewal

To obtain a license, an applicant must submit an application to the commissioner on a form prescribed by the commissioner, accompanied by a nonrefundable application fee and a license fee (WVCO 32A-2-4). The commissioner shall approve or deny every application for an original license within 120 days from the date a complete application is submitted, unless the commissioner extends the period for good cause. All licenses issued under this article expire on December 31 of the year issued, unless sooner suspended or revoked, and are subject to renewal for the following year.

Bond Requirement

A person who is licensed under this article shall post a bond with a qualified surety company doing business in this state that is acceptable to the commissioner. The bond shall be in the amount of $100,000 for a licensee which issues or sells checks or money orders, or which engages in currency exchange; or $300,000 for a licensee which engages in receiving money for transmission by wire, facsimile, or electronic transfer, or which engages in currency transportation. A licensee which engages in multiple types of these activities shall post the higher amount. A merchant obtaining a license solely to engage in the check cashing business not incidental to the main business of the merchant as required by §32A-3-1 et seq. of this code shall post a bond of $100,000. The bond required by this subsection shall be increased at the time of license renewal by one percent of the annual volume of business the licensee conducts in this state exceeding $10 million rounded to the nearest thousand, as reported by the licensee: Provided, That in no event shall the bond exceed $1 million (WVCO 32A-2-10).

Conclusion

To accept payments online in West Virginia, you must obtain a license, pay the required fees, and post a bond. The bond amount will depend on the type of business you are engaged in and the volume of business you conduct in the state.

It is important to note that there are additional laws and regulations that may apply to specific types of businesses or transactions. For example, WVCO 12-3A-5 allows for the establishment of point of sale terminals for certain public assistance payments, WVCO 32A-3-1 permits check cashing services under certain conditions, WVCO 31A-8C-2 allows banks and bank holding companies to offer financially related services, and WVCO 12-3A-7 permits the sale or disposal of personal property through electronic commerce.

If you have any further questions or concerns, it is recommended that you consult with a legal professional.

Jurisdiction

West Virginia

• General