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

Using Third-Party Payment Processors in Delaware

Delaware law does not prohibit the use of third-party payment processors on websites. However, there are certain requirements that must be met to ensure compliance with Delaware law.

Licensing Requirements

If you are a payment processor, you may need to obtain a license from the State Bank Commissioner [4.1][3.3]. The application for a license must include information such as the applicant’s name, address, and telephone number, the name and address of the applicant’s registered agent in Delaware, and the name and home address of each officer and director of the applicant and each person that owns at least 10 percent of the applicant [3.3]. Additionally, the applicant may be required to provide a complete set of fingerprints for purposes of a criminal background investigation [4.1][3.3].

Obligations of Receiving Bank

If you are using a third-party payment processor, it is important to note that the receiving bank has certain obligations in executing payment orders [2.3]. For example, the receiving bank is obliged to issue a payment order complying with the sender’s order and to follow the sender’s instructions concerning any intermediary bank or funds-transfer system to be used in carrying out the funds transfer [2.3].

Unenforceability of Certain Verified Payment Orders

If an accepted payment order is not an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to Section 4A-202(b), the receiving bank may limit the extent to which it is entitled to enforce or retain payment of the payment order by express written agreement [2.1].

Conclusion

To use third-party payment processors on your website in Delaware, you may need to obtain a license from the State Bank Commissioner and ensure that the receiving bank complies with its obligations in executing payment orders. Additionally, you should be aware of the unenforceability of certain verified payment orders.

Source(s):
Jurisdiction

Delaware