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

October 18, 2023

Using Third-Party Payment Processors on a Website in Oklahoma

Oklahoma law does not have specific requirements for using third-party payment processors on a website. However, if the payment processor is used to transmit payment orders to a receiving bank, the provisions of 12A OKST 4A-206 and 12A OKST 4A-209 may apply.

According to 12A OKST 4A-206, if a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other third-party communication system for transmittal to the bank, the system is deemed to be an agent of the sender for the purpose of transmitting the payment order to the bank. If there is a discrepancy between the terms of the payment order transmitted to the system and the terms of the payment order transmitted by the system to the bank, the terms of the payment order of the sender are those transmitted by the system. This section does not apply to a funds-transfer system of the Federal Reserve Banks.

12A OKST 4A-209 states that a receiving bank other than the beneficiary’s bank accepts a payment order when it executes the order. A beneficiary’s bank accepts a payment order at the earliest of the following times: when the bank pays the beneficiary or notifies the beneficiary of receipt of the order or that the account of the beneficiary has been credited with respect to the order unless the notice indicates that the bank is rejecting the order or that funds with respect to the order may not be withdrawn or used until receipt of payment from the sender of the order.

If a third-party payment processor is used to transmit payment orders to a receiving bank, the payment processor may be deemed an agent of the sender and the terms of the payment order transmitted by the payment processor may be considered those of the sender. Additionally, the receiving bank may accept the payment order when it executes the order.

It is important to note that this information is not exhaustive and may not cover all possible scenarios. It is recommended to consult with a legal professional for specific guidance on using third-party payment processors on a website in Oklahoma.

Third-Party Logistics Provider Licensing Requirement

If a third-party logistics provider ships prescription drugs in, into, or out of Oklahoma, each facility of the provider must be licensed in Oklahoma and renewed annually by application and payment of renewal fees. The provider must also be licensed as a third-party logistics provider by the state from which the provider ships if Oklahoma is the state into which a prescription drug is shipped. The license is only valid for the name, ownership, and location listed on the license, and changes in any information required for licensure must be reported to the Board in writing within ten days. When third-party logistics provider operations are conducted at more than one location, each location must be licensed by the Board. A third-party logistics provider must publicly display all licenses and have readily available the most recent state and/or federal inspection reports. ^[2.1]

Unenforceability of Certain Verified Payment Orders

If an accepted payment order is not an authorized order of a customer identified as the sender but is effective as an order of the customer pursuant to subsection (b) of Section 10 of this act, the receiving bank may limit the extent to which it is entitled to enforce or retain payment of the payment order by express written agreement. 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. Information includes any access device, computer software, or the like. ^[3.1]

Authorized and Verified Payment Orders

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. The bank is not required to follow an instruction that violates a written agreement with the customer or notice of which is not received at a time and in a manner affording the bank a reasonable opportunity to act on it before the payment order is accepted. Commercial reasonableness of a security procedure is a question of law to be determined by considering the wishes of the customer expressed to the bank, the circumstances of the customer known to the bank, including the size, type, and frequency of payment orders normally issued by the customer to the bank, alternative security procedures offered to the customer, and security procedures in general use by customers and receiving banks similarly situated. A security procedure is deemed to be commercially reasonable if the security procedure was chosen by the customer after the bank offered, and the customer refused, a security procedure that was commercially reasonable for that customer, and the customer expressly agreed in writing to be bound by any payment order, whether or not authorized, issued in its name and accepted by the bank in compliance with the security procedure chosen by the customer. ^[3.2]

Source(s):

Jurisdiction

Oklahoma

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