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Can I collect credit card information from participants in Delaware? What are the requirements?

Requirements for Collecting Credit Card Information in Delaware

If you are collecting credit card information from participants in Delaware, you may be subject to certain requirements under Delaware law. The specific requirements will depend on the purpose for which you are collecting the credit card information.

Credit Services Organizations

If you are a credit services organization, you must comply with certain requirements under Delaware law [2.2]. A credit services organization is defined as a person who, with respect to the extension of credit by others and in return for the payment of money or other valuable consideration, provides, or represents that the person can or will provide, any of the following services: (1) Improving a buyer’s credit record, history or rating; (2) Obtaining an extension of credit for a buyer; or (3) Providing advice or assistance to a buyer with regard to paragraph (a)(1) or (2) of this section.

If you are a credit services organization, you must comply with the following requirements:

  1. Licensing: You must obtain a license from the Delaware Attorney General’s Office before conducting business in Delaware [2.2].
  2. Disclosure Statement: Before executing a contract or agreement with a buyer or receiving money or other valuable consideration, a credit services organization shall provide the buyer with a statement in writing, containing certain information [2.2].
  3. Public Information: Except for certain information, the Attorney General shall make the information in an application for a provider license available to the public [2.2].
  4. Required Information: An application for a license must be signed under oath and include certain information [2.2].

Credit Card Issuers

If you are collecting credit card information for the purpose of extending credit, you may need to comply with the requirements for credit card issuers under Delaware law [1.3]. In order to establish a credit card institution in Delaware, you must apply for a certificate from the State Bank Commissioner [1.3]. The Commissioner will consider whether public convenience and advantage would be promoted by the establishment of the credit card institution, and whether the terms and provisions of the articles of association and the proposed corporation’s location and plan of operation are in compliance with Delaware law [1.3].

Registration

Regardless of whether you are a credit services organization or a credit card issuer, you may need to file a registration statement with the Secretary of State before conducting business in Delaware [2.2]. The registration statement must contain certain information, including the name and address of the credit services organization or credit card issuer, the name and address of any person who directly or indirectly owns or controls 10 percent or more of the outstanding shares of stock in the credit services organization or credit card issuer, and the name and address of the credit services organization or credit card issuer’s agent in the State authorized to receive service of process [2.2].

Conclusion

If you are collecting credit card information from participants in Delaware, you may be subject to certain requirements under Delaware law. The specific requirements will depend on the purpose for which you are collecting the credit card information. If you are a credit services organization, you must comply with certain requirements, including obtaining a license from the Delaware Attorney General’s Office and providing a disclosure statement to buyers. If you are a credit card issuer, you must apply for a certificate from the State Bank Commissioner. Regardless of whether you are a credit services organization or a credit card issuer, you may need to file a registration statement with the Secretary of State before conducting business in Delaware.

Source(s):
Jurisdiction

Delaware