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

Here is the response to your query:

Using Third-Party Payment Processors in Arkansas

If you want to use third-party payment processors on your website in Arkansas, you must comply with the state’s laws and regulations. The Arkansas Code Annotated provides guidance on payment orders, billing information, and license permits.

Payment Orders

According to ARCO 4-4A-202, a payment order received by the receiving bank is the authorized order of the person identified as the 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 the sender will be verified pursuant to a security procedure, a payment order received by the receiving bank is effective as the order of the customer, whether or not authorized, if the security procedure is a commercially reasonable method of providing security against unauthorized payment orders, and the bank proves that it accepted the payment order in good faith and in compliance with the security procedure and any written agreement or instruction of the customer restricting acceptance of payment orders issued in the name of the customer.

License Permits

If you plan to operate a check-cashing business in Arkansas, you must obtain a license permit from the State Board of Collection Agencies (SBCA). According to ARAR 031.00.2–IV, each application for a license permit shall be in writing and under oath to the SBCA, submitted in the format prescribed by the SBCA, and shall be accompanied by an initial permit fee of Five Hundred Dollars ($500.00). A financial statement showing that the applicant or check casher has at least twenty thousand dollars ($20,000.00) in cash or liquid assets, available for the operations of his check cashing business, for each location for which he seeks a license permit. The applicant must also provide an original surety bond in the amount of Fifty Thousand Dollars ($50,000.00) and made payable to the State of Arkansas, State Board of Collection Agencies.

Billing Information

If you bill your customers for services provided, you must comply with the Arkansas Administrative Rules and Regulations (ARAR) 126.03.9–13.04. The bill shall contain the following information:

• Name and telephone number or identifying number under which service is billed.
• Any previous balance due.
• The ending date of the bill cycle or the invoice date.
• Either the due date of the bill or the total payable upon receipt and, if applicable, the date on which a late payment charge will be imposed.
• Itemization of the charges including any applicable taxes.
• Name and a toll-free telephone number of the TP for billing inquiries.

Credit Card Processing Service

If you offer a credit card processing service in Arkansas, you must disclose certain information on any contract or agreement to render a credit card processing service. According to ARCO 4-115-101, you must disclose the effective date of the contract, the term of the contract, the amount of any monthly minimum fee or charge for the credit card processing service, and the amount of any fee or charge for terminating the contract or agreement. You must also print the disclosures required in 8-point font at a minimum. Additionally, you cannot charge a fee of more than fifty dollars ($50.00) for terminating a contract for credit card processing service or a monthly minimum fee under a credit card processing service contract for more than one (1) month after the credit card processing service contract is terminated.

Conclusion

To use third-party payment processors on your website in Arkansas, you must comply with the state’s laws and regulations. You must obtain a license permit from the SBCA if you plan to operate a check-cashing business. You must also provide billing information that complies with ARAR 126.03.9–13.04. If you offer a credit card processing service, you must disclose certain information on any contract or agreement to render a credit card processing service and cannot charge certain fees.

Jurisdiction

Arkansas

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