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

To use third-party payment processors on your website in Maryland, you must comply with the state’s procurement regulations. The Maryland Code of Regulations (MDCR) 21.03.05.00 authorizes electronic procurements and MDCR 21.03.05.02 outlines the solicitation requirements for electronic transactions.

Solicitation Requirements for Electronic Transactions [2.3]

If you want to use electronic means for any part of the procurement, you must specify that electronic transactions are permitted or required in the solicitation or contract. The solicitation or contract must identify the transactions for which electronic means are authorized, the specific means of conducting each authorized electronic transaction, and the format for electronic transmission of required information. The information processing systems to be used to conduct the electronic procurement transactions and how to access such systems must also be specified. The time, place, and manner of receipt of electronic transactions from a bidder, offeror, or contractor, and the fees to be charged, if any, for use of the specified electronic means must also be included.

Third-Party Liability [1.1]

If you are accepting payments on behalf of a recipient of the Maryland Medical Assistance Program, you must cooperate with and assist the Department in identifying and providing information concerning third parties who may be liable to pay for care and services received by the recipient under the Program. Recipients are required to assist and cooperate fully with the Department in the Department’s efforts to secure the Department’s rights in Regulation .02 of this chapter.

Conflict with Federal Requirements [1.3]

If any provision of the procurement regulations conflicts with federal law concerning the Program or receipt of federal funds to finance the Program, the provision does not apply to the extent of the conflict.

Based on the above regulations, it appears that you can use third-party payment processors on your website in Maryland as long as you comply with the state’s procurement regulations and cooperate with the Department in identifying and providing information concerning third parties who may be liable to pay for care and services received by the recipient under the Program.

Source(s):
Jurisdiction

Maryland