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Can I use third-party payment processors on my website in Rhode Island? What are the requirements?
Here is the response to your query:
Using Third-Party Payment Processors in Rhode Island
Rhode Island law does not have specific provisions regarding the use of third-party payment processors on websites. However, if you are a licensee, you must comply with the requirements set forth in R.I. Gen. Laws § 19-14-5, § 19-14-6, and § 19-14-7, as well as § 2.5 of the 230 RICR 40-10-2.5 regulation.
License Requirements
If you are a licensee, you must maintain minimum net worth, file bonds, appoint a qualified individual or branch manager, demonstrate financial responsibility, and provide criminal background checks. You must also comply with advertising requirements and report any changes to the Department within thirty (30) days through an NMLS filing. Net branching is prohibited in Rhode Island.
Exemptions from Licensing
If you are not a licensee, you may be exempt from licensing if you are a regulated institution, bank, or credit union organized under the laws of the United States, a natural person employee who is employed by a licensee when acting on the licensee’s behalf, or a person engaged in the business of cashing checks where that business is incidental to the person’s retail sale of goods or services and the person charges not more than fifty cents ($.50) per check cashed [6.1].
Additionally, third-party delivery services are prohibited from using the likeness, registered trademark, or any intellectual property belonging to the merchant to falsely suggest sponsorship or endorsement by, or affiliation with the merchant [2.1].
Based on the information provided, it is unclear whether you are a licensee or not. If you are a licensee, you must comply with the requirements set forth in the law and regulation. If you are not a licensee, you may be exempt from licensing under certain circumstances.
Source(s):
Jurisdiction
Rhode Island