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

Using Third-Party Payment Processors in Montana

If you are planning to use third-party payment processors on your website in Montana, you should be aware of the following requirements:

  1. The Montana Department of Revenue accepts electronic payments, but taxpayers should check the department’s website to determine which types of electronic payments are accepted and the electronic submission options available [1.1].
  2. If you have a tax liability of $500,000 or greater, you must make payment to the department by electronic funds transfer. If a check, draft, or similar paper instrument is received in the amount of $500,000 or greater, it shall constitute nonpayment and be returned to the taxpayer. Applicable late payment penalties and interest shall be applied until such time as the payment is remitted by electronic funds transfer [1.1].
  3. Any electronic payment must include the name and tax identification number of the taxpayer, type of tax or taxes being paid, amount of each type of tax being paid, and any additional information necessary to process the type of electronic payment being made and to identify the taxpayer and account to which the payment is to be applied [1.1].
  4. Montana Code Annotated (MCA) 30-4A-202 states that a payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency. 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 the security procedure is a commercially reasonable method of providing security against unauthorized payment orders and the bank proves that it accepted the payment order in good faith and in compliance with the security procedure and any written agreement or instruction of the customer restricting acceptance of payment orders issued in the name of the customer [2.1].

Based on the above information, it appears that using third-party payment processors on your website in Montana is allowed as long as the payment is made by electronic funds transfer and includes all the necessary information required by the Montana Department of Revenue. Additionally, the payment order must be authorized by the person identified as the sender and the bank must verify the authenticity of the payment order through a commercially reasonable security procedure. However, it is recommended that you check the department’s website for any additional requirements or restrictions.

Source(s):
Jurisdiction

Montana