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Can I use third-party payment processors on my website in Oregon? What are the requirements?
To use third-party payment processors on your website in Oregon, you may need to obtain a third party administrator license from the Oregon Department of Consumer and Business Services. The requirements for obtaining this license are outlined in ORAR 836-075-0000 [2.1].
To apply for a third party administrator license, you must provide information about the organizational form of your business, including the name under which you will transact business, the principal place of business, and the organizational form of your business. You must also provide information about any assumed business names and other names under which you will transact business, as well as information about any judgments entered against you for fraud, any licenses that have been refused, revoked, or suspended, and any complaints to professional licensing boards or agencies.
Additionally, you must provide biographical information for each owner, partner, director, and officer of your business, as well as information about the individuals responsible for the conduct of affairs of your business. You must also provide information about any licenses or certificates of authority to transact business as a third party administrator that you hold in other states or provinces of Canada.
You must provide all basic organizational documents of your business, including any articles of incorporation, articles of association, partnership agreement, trade name certificate, trust agreement, shareholder agreement, and other applicable documents and all amendments to such documents. You must also provide the bylaws, rules, regulations, or similar documents regulating the internal affairs of your business.
You must provide annual financial statements or reports for the two most recent years, which prove that your business is solvent, and such information as the Director may require in order to review the current financial condition of your business. If your business is a corporation that is newly formed for the purpose of transacting business as a third party administrator, you must provide the financial statements or reports of each incorporator, shareholder, and officer for the two most recent years, a current balance sheet for the corporation, and such information as the Director may require in order to review the current financial condition of your business.
You must provide a statement describing your business plan, including information on staffing levels and activities proposed in Oregon and nationwide. The plan must provide details setting forth your capability for providing a sufficient number of experienced and qualified personnel in the areas of claims processing, recordkeeping, and underwriting.
You must also provide evidence that you have a fiduciary account established in a federally or state-insured financial institution. If you are an insurance producer licensed under ORS Chapter 744, you need not comply with this subsection if you are in compliance with ORS 744.225 with respect to the premiums, charges, and return premiums referred to in 744.730.
Finally, you must provide evidence of insurance coverage required by ORS 744.726, and if you will be managing the solicitation of new or renewal business, proof that you employ or have contracted with an insurance producer licensed by the Director for solicitation and taking of applications. Any applicant that intends directly to solicit insurance contracts or to otherwise act as an insurance producer must provide proof that it has a license as an insurance producer in Oregon.
In summary, to use third-party payment processors on your website in Oregon, you may need to obtain a third party administrator license from the Oregon Department of Consumer and Business Services. The requirements for obtaining this license are outlined in ORAR 836-075-0000 [2.1].
Source(s):
Jurisdiction
Oregon