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

Here is the response to your query:

Using Third-Party Payment Processors in North Carolina

Yes, you can use third-party payment processors on your website in North Carolina. However, there are certain requirements that you need to comply with.

According to [NCGS 53-232.5], all international banking corporations doing business in North Carolina are subject to Article 15 of Chapter 55 of the North Carolina Business Corporation Act. This means that if you are an international banking corporation, you need to comply with the requirements of Article 15 of Chapter 55.

Additionally, if you are using third-party payment processors, you need to ensure that you comply with the disclosure requirements of [NCGS 66-493]. This law requires online marketplaces to disclose certain identity information of high-volume third-party sellers to consumers in a clear and conspicuous manner.

Requirements for Third-Party Payment Processors

There are no specific requirements for using third-party payment processors in North Carolina. However, if you are an international banking corporation, you need to comply with the requirements of Article 15 of Chapter 55 of the North Carolina Business Corporation Act.

Verification of Payment Orders

According to [NCGS 25-4A-202], 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.

Unenforceability of Payment Orders

According to [NCGS 25-4A-203], if an accepted payment order is not an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to [NCGS 25-4A-202], the receiving bank is not entitled to enforce or retain payment of the payment order if the customer proves that the order was not caused, directly or indirectly, by a person entrusted at any time with duties to act for the customer with respect to payment orders or the security procedure, or who obtained access to transmitting facilities of the customer or who obtained, from a source controlled by the customer and without authority of the receiving bank, information facilitating breach of the security procedure, regardless of how the information was obtained or whether the customer was at fault.

Conclusion

In summary, you can use third-party payment processors on your website in North Carolina, but you need to comply with the disclosure requirements of [NCGS 66-493] if you are an online marketplace. If you are an international banking corporation, you also need to comply with the requirements of Article 15 of Chapter 55 of the North Carolina Business Corporation Act. Additionally, payment orders received by the receiving bank must be authorized by the sender or verified pursuant to a security procedure, and the receiving bank is not entitled to enforce or retain payment of the payment order if it was not caused by an authorized person or if the security procedure was breached.

Jurisdiction

North Carolina

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