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

Third-Party Payment Processors in Illinois

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

Requirements for Surcharge and Contact Information Signage [2.1]

Illinois law requires that any business that imposes a surcharge on a customer for using a credit card must conspicuously post a sign at the point of entry of the business and at the point of sale indicating that a surcharge will be imposed. The sign must also include the amount of the surcharge. Additionally, the business must provide a written receipt to the customer that separately states the amount of the surcharge.

Direct Payment Program [1.1]

Illinois law allows businesses to participate in the Direct Payment Program, which allows them to electronically pay their taxes to the Illinois Department of Revenue. To participate in the program, businesses must register with the Department of Revenue and meet certain eligibility requirements.

Permit Holder’s Payment of Tax [1.2]

Illinois law requires that businesses that hold certain permits pay their taxes electronically. The law specifies the types of permits that are subject to this requirement.

810 ILCS 5/4A-206 [3.2]

This section of the Illinois Uniform Commercial Code governs the transmission of payment orders through funds transfer or other communication systems. It provides that if a payment order is transmitted to a third-party communication system for transmittal to a receiving bank, the system is deemed to be an agent of the sender for the purpose of transmitting the payment order to the bank.

810 ILCS 5/4A-202 [3.3]

This section of the Illinois Uniform Commercial Code governs authorized and verified payment orders. It provides that a payment order received by a 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. It also provides that 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 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 certain conditions are met.

810 ILCS 5/4A-203 [3.4]

This section of the Illinois Uniform Commercial Code governs the unenforceability of certain verified payment orders. It provides that 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 be limited in its ability to enforce or retain payment of the payment order.

Based on the above documents, there are no specific requirements for using third-party payment processors on websites in Illinois. However, businesses that impose a surcharge on customers for using a credit card must comply with certain signage and receipt requirements. Additionally, businesses that hold certain permits must pay their taxes electronically. Finally, the Illinois Uniform Commercial Code governs the transmission and verification of payment orders, which may be relevant to businesses that use third-party payment processors.

Source(s):
Jurisdiction

Illinois