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

Here is the response to your query:

Using Third-Party Payment Processors in Kentucky

If you want to use third-party payment processors on your website in Kentucky, you must obtain a license to engage in the business of cashing checks or accepting deferred deposit transactions for a fee or other consideration ^[1.2].

License Requirements

To obtain a license, you must submit an application to the commissioner and pay a license fee of $500 for the first location and $500 for each additional location annually on or before June 20 of each year ^[1.3].

Prohibition Against Transfer or Assignment of License

A license issued under this subtitle shall not be transferred or assigned ^[3.1].

Foreign Financial Institutions

Foreign financial institutions engaging in certain activities in Kentucky are not considered to be doing business in the state and are not required to qualify to do business in Kentucky ^[2.1][2.2].

Conclusion

To use third-party payment processors on your website in Kentucky, you must obtain a license to engage in the business of cashing checks or accepting deferred deposit transactions for a fee or other consideration. The license must be renewed annually, and it cannot be transferred or assigned. However, foreign financial institutions engaging in certain activities in Kentucky are not considered to be doing business in the state and are not required to qualify to do business in Kentucky.

Source(s):

• [2.1] Foreign financial institutions, activities deemed not transacting business in Kentucky.
• [1.2] Requirement of license.
• [1.3] Licenses – Renewal and reinstatement.
• [2.2] Foreign financial institutions, when not required to qualify as doing business – Nexus requirement.
• [3.1] License required for persons engaging in money transmission – Prohibition against transfer or assignment of license.

Jurisdiction

Kentucky

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