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

Yes, you can use third-party payment processors on your website in New Jersey, subject to compliance with applicable laws and regulations. The New Jersey Administrative Code (NJAC) does not prohibit the use of third-party payment processors, but it does require that certain information be provided to the Commissioner of Banking and Insurance when applying for licensure or registration as a third-party administrator [1.1].

If you are using a third-party payment processor, you must ensure that the processor is compliant with all applicable laws and regulations, including those related to data privacy and security. Additionally, you must ensure that your website or mobile application adheres to cyber security best practices for the security of its systems, including the data, servers, and network(s) contained within [4.1].

It is important to note that the NJAC requires that all technologies related to courier service customer accounts and ticket sales, including data warehouse, redundant/failover system, or backup systems relating to the courier service website or mobile application shall be physically located in the United States [4.1]. However, this requirement does not apply to third-party payment processors used on websites in New Jersey.

If you are a third-party administrator subject to licensure or registration in New Jersey, you must obtain licensure or registration prior to operating in the state [1.1]. The application for licensure or registration must be made on a form prescribed by the Commissioner and can be found on the Department’s website [1.1].

The information that must accompany the application includes a copy of the applicant’s basic organizational documents, a copy of the executed bylaws, rules and regulations, or other documents relating to the operation of the applicant’s internal affairs, a biographical affidavit, a statement of any criminal convictions or civil, enforcement or regulatory action, a copy of the applicant’s most recent financial statements audited by an independent certified public accountant, a copy of the applicant’s business plan, and a power of attorney, duly executed by the applicant, if not domiciled in New Jersey [1.1].

In summary, you can use third-party payment processors on your website in New Jersey, but you must ensure compliance with applicable laws and regulations. If you are a third-party administrator subject to licensure or registration in New Jersey, you must obtain licensure or registration prior to operating in the state and provide certain information to the Commissioner of Banking and Insurance. [1.1][4.1].

Source(s):
Jurisdiction

New Jersey