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

Here is the response to your query:

Third-Party Payment Processors in Georgia

Georgia law does not explicitly prohibit the use of third-party payment processors on websites. However, if you plan to use third-party payment processors, you must comply with the requirements set forth in the Georgia Code.

According to GACO 7-1-707, no licensee shall deposit with any financial institution a payment instrument it has accepted and exchanged for monetary value unless such payment instrument is endorsed by the licensee. Additionally, no licensee shall receive any payment instrument with payment deferred pending collection. Payment shall be made immediately in cash for every payment instrument accepted by the licensee and exchanged for monetary value for a fee.

If you plan to accept checks for collection with payment deferred, you must post a surety bond in the same manner as prescribed for licensed money transmitters or licensed payment instrument sellers under Code Section 7-1-683.2 and under the same conditions as set forth under Code Section 7-1-687. The surety bond shall be in the aggregate amount of $10,000.00 for each location operated by the licensee, if the licensee operates three or fewer locations, plus $5,000.00 per location for the fourth and fifth locations operated by the licensee, plus $1,000.00 for each location operated by the licensee in excess of the fifth location.

Furthermore, no licensee shall cash payment instruments made payable to a payee other than an individual unless such licensee has previously obtained appropriate documentation from the authorized executive officer of such payee clearly indicating the authority of the individual to cash the payment instrument on behalf of the payee. No licensee shall cash payment instruments without identification of the bearer of such instrument, and any person seeking to cash payment instruments shall be required to submit such reasonable identification as shall be prescribed by the department.

Exemptions and Requirements for Licensure

GACO 7-1-701.1 provides exemptions from licensing requirements for certain entities, including state or federally chartered banks, trust companies, credit unions, savings and loan associations, or savings banks with federally insured deposits, the United States Postal Service, and state or federal governmental departments, agencies, authorities, or instrumentalities and their agents. However, if you are not exempt, you must comply with the requirements for licensure set forth in GACO 7-1-702 and 7-1-683, which include submitting an application in writing, furnishing required information to the Nationwide Multistate Licensing System and Registry, paying investigation and supervision fees, and submitting other data and financial statements as required by the department.

Conclusion

In summary, Georgia law does not prohibit the use of third-party payment processors on websites, but you must comply with the requirements set forth in the Georgia Code, including those related to payment instruments, surety bonds, identification requirements, and licensure. It is recommended that you consult with a legal professional to ensure compliance with all applicable laws and regulations.

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Source(s):
Jurisdiction

Georgia, Georgia