Can I use third-party payment processors on my website in Alaska? What are the requirements?

Here is the response to your query:

Using Third-Party Payment Processors on Your Website in Alaska

Yes, you can use third-party payment processors on your website in Alaska. However, you must comply with the requirements set forth in AS 45.55.175. According to this statute, an issuer relying on the exemption in AS 45.55.175 may use a website operated by a third party to advertise securities.

The third-party website must meet certain requirements, including:

• The third-party website must be operated by an entity that has its principal place of business in Alaska, is incorporated or organized in Alaska, and has an active business license issued under AS 43.70.
• The third-party website must provide a disclaimer on its website explaining that access to securities offerings on the third-party website is limited to residents of Alaska only and that offers and sales of securities are limited to residents of Alaska only.
• The third-party website must require an affirmative representation by a visitor to the third-party website that the visitor is a resident of Alaska before the visitor can view securities-related advertising materials on the third-party website.
• The third-party website must maintain and preserve certain records for a period of five years from the date of the document or communication, including records of any compensation received for acting as a third-party website, any agreement or contract between the third-party website and an issuer, any correspondence or other communications with issuers, and ledgers or other records that reflect all assets and liabilities, income and expense, and capital accounts.
• The third-party website must file with the administrator a notice form as prescribed by the administrator and pay the filing fee required by 3 AAC 08.920(a)(14).
• The third-party website must update any material change on the third-party website notice form and file it with the administrator not later than 30 days from the date of the change.

It is important to note that these requirements are specific to advertising securities on a third-party website. If you are using a third-party payment processor for other purposes, you may need to comply with different requirements.

Payment Orders and Refunds

Additionally, it is important to understand the legal requirements for payment orders and refunds in Alaska. According to AS 45.14.202, a payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency. If a bank and its customer have agreed that the authenticity of payment orders issued to the bank in the name of the customer as sender will be verified under a security procedure, a payment order received by the receiving bank is effective as the order of the customer, whether or not authorized.

If a receiving bank accepts a payment order issued in the name of its customer as sender and if the payment order is not authorized and not effective as the order of the customer, the bank shall refund payment of the payment order received from the customer to the extent that 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. However, the customer is not entitled to interest from the bank on the amount to be refunded if the customer fails 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.

Conclusion

To summarize, you can use third-party payment processors on your website in Alaska, but you must comply with the requirements set forth in AS 45.55.175 if you are advertising securities on the third-party website. Additionally, it is important to understand the legal requirements for payment orders and refunds in Alaska.

Jurisdiction

Alaska

• Privacy