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

Using Third-Party Payment Processors on Your Website in Nevada

If you are planning to use third-party payment processors on your website in Nevada, you must comply with applicable laws and regulations.

According to NVRS 604A.579, a licensee that offers deferred deposit loan services services through an Internet website must be licensed in each state, as applicable, where any of its customers reside and shall comply with any state or federal law or regulation applicable to such jurisdiction. This means that if you are offering deferred deposit loan services through your website, you must be licensed in each state where your customers reside and comply with all applicable laws and regulations.

Additionally, if you are a financial institution, you may obtain a special license pursuant to NVRS 645G.210. The Division shall issue a special license to a financial institution if the financial institution maintains an office in Nevada, pays the fee required for the issuance of a license, and complies with any other requirements set forth by regulations adopted by the Division. A financial institution which obtains a special license pursuant to this section is exempt from certain requirements of NRS 645G.100 except as otherwise required by regulations adopted by the Division.

Requirements for Obtaining a License

If you are required to obtain a license to use third-party payment processors on your website in Nevada, you must comply with the requirements set forth in the applicable statutes and regulations.

For example, if you are required to obtain a license as an exchange facilitator, you must submit an application to the Division, pay the fee prescribed by NRS 645G.220, and provide the Division with the required information, including the applicant’s name, business address and telephone number, the name under which the applicant will hold the money or other property of a client, the names, residence and business addresses of all shareholders or members who hold 10 percent or more of the voting stock of the applicant’s business and all persons having an interest in the business as principals, partners, officers, trustees or directors, specifying the capacity and title of each, the length of time the applicant has been engaged in the business of acting as an exchange facilitator, a summary description of the business of the applicant, a list of any similar licenses obtained and maintained in other states or other jurisdiction and information regarding revocation of any such license, the tax identification number of the applicant, and a current certificate of good standing for the applicant from the state or other jurisdiction in which the applicant’s business is formed [NVRS 645G.100].

Nationwide Multistate Licensing System and Registry

The Nationwide Multistate Licensing System and Registry (NMLS) is a licensing system for certain financial industries, including mortgage, consumer finance, and money services businesses. Nevada participates in the NMLS, and you may be required to obtain a license through the NMLS to use third-party payment processors on your website in Nevada.

According to NVRS 671.092, the Commissioner of Financial Institutions may participate in the NMLS and take any action necessary to carry out his or her duties, including requiring an applicant for a license or a licensee to use the NMLS to apply for the issuance or renewal of a license, amend or surrender a license, submit any reports or the results of any examination that the Commissioner may require, pay any applicable fees, and engage in any other activity that the Commissioner may require. An applicant for a license or a licensee must pay all applicable charges to use the NMLS, including any processing charges established by the administrator of the NMLS.

If you are required to submit fingerprints for a background check, you may use the services of the NMLS to process and submit the fingerprints to the Federal Bureau of Investigation, to the Central Repository for Nevada Records of Criminal History, to any federal or state law enforcement agency, or to any other entity authorized to receive such information for the purpose of conducting a background check of the criminal history of an applicant for a license or a licensee [NVRS 671.094].

In addition to any other requirements set forth in the applicable statutes and regulations, each applicant for the issuance of a license pursuant to NVRS 604A.579 and each owner, officer, director, and responsible person of the applicant, each person in control of the applicant, and any other person the Commissioner may require in accordance with guidelines of the NMLS or other multistate agreements shall submit to the NMLS a complete set of fingerprints for submission to the Federal Bureau of Investigation and any other governmental agency or entity authorized to receive such information for a state, national, and international background check on the criminal history of the person; information concerning the personal history, financial history, and experience of the person in a form prescribed by the NMLS, including an authorization of the person for the NMLS and the Commissioner to obtain an independent credit report and credit score from a consumer reporting agency for the purpose of evaluating the financial responsibility of the person at the time of the submission of the application and additional independent credit reports and credit scores to confirm that the person continues to comply with any applicable requirements concerning financial responsibility; information related to any administrative, civil, or criminal findings made by any governmental jurisdiction concerning the person; and any other information concerning the person that the NMLS or Commissioner may require [NVRS 671.098].

Conclusion

If you are planning to use third-party payment processors on your website in Nevada, you must comply with applicable laws and regulations. If you are required to obtain a license, you must submit an application to the Division, pay the fee prescribed by the applicable statute, and provide the Division with the required information. You may also be required to obtain a license through the NMLS and submit fingerprints for a background check.

Jurisdiction

Nevada

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