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

Yes, you can use third-party payment processors on your website in Michigan. However, you must comply with the relevant requirements set forth in the statutes.

Requirements for Online State Services by Unaffiliated Third Party [1.2]

If the third party charges customers a fee or requires customers to disclose personal information for online services that are similar to online services performed by a governmental agency in Michigan and the third party is not affiliated with that governmental agency or under contract with that governmental agency to provide those online services, the third party shall do all of the following:

  • Have a conspicuous notification on the website offering those online services stating that the third party is not a governmental agency of Michigan.
  • Have a conspicuous notification on the website offering those online services stating that the third party’s services are not endorsed or approved by a governmental agency of Michigan.
  • Have a conspicuous notification on the website offering those online services stating that the third party is not affiliated with a governmental agency of Michigan or under contract with a governmental agency of Michigan to provide those online services.
  • Provide a link on the website offering those online services to the website of the governmental agency of Michigan on which a person may utilize the governmental agency’s online service.
  • Before a transaction for an online service is completed, ensure that a conspicuous notification of any fee it will charge for the online service occurs.

Electronic Billing Requirements [2.1]

If you choose to issue billing statements electronically, you must comply with the following requirements:

  • A customer shall not be required to use electronic billing.
  • No enrollment or usage fees shall be assessed to a customer who chooses to receive bills or customer information electronically.
  • The electronic billing statement shall include, at minimum, all information listed in R 460.117.
  • The company shall maintain a secure and encrypted site to be accessed by the customer after completing a secure registration process.
  • The utility may require that the customer use a password or security question to access the electronic billing system. The company shall not require the customer to use his or her social security number to enroll in or access the billing system.
  • Any fees to accept electronic payments shall be clearly displayed in the payment window.
  • Any payment made electronically shall be treated as a payment to the company business office.
  • Use of the electronic system shall not restrict the customer in using other payment methods. All other payment methods shall continue to be available to the customer.

Based on the above statutes, you must ensure that you have a conspicuous notification on your website stating that you are not a governmental agency of Michigan, your services are not endorsed or approved by a governmental agency of Michigan, and you are not affiliated or under contract to perform online services for a governmental agency of Michigan. Additionally, you must provide a link on your website to the website of the governmental agency of Michigan on which a person may utilize the governmental agency’s online service. Before a transaction for an online service is completed, ensure that a conspicuous notification of any fee it will charge for the online service occurs. You must also comply with the electronic billing requirements if you choose to issue billing statements electronically.

Source(s):
Jurisdiction

Michigan