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Can I use third-party payment processors on my website in Vermont? What are the requirements?
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Using Third-Party Payment Processors in Vermont
Vermont law allows the use of third-party payment processors by merchants [1.1]. However, electronic payment systems, including third-party payment processors, are prohibited from imposing any requirement, condition, penalty, or fine in a contract with a merchant to inhibit the ability of any merchant to provide a discount or other benefit for payment through the use of a card of another electronic payment system, cash, check, debit card, stored-value card, charge card, or credit card rather than another form of payment [1.1].
Requirements for Third-Party Payment Processors
There are no specific requirements for third-party payment processors in Vermont. However, if you are a third-party payment processor offering services to Vermont merchants, you must comply with the prohibition on imposing any requirement, condition, penalty, or fine in a contract with a merchant to inhibit the ability of any merchant to provide a discount or other benefit for payment through the use of a card of another electronic payment system, cash, check, debit card, stored-value card, charge card, or credit card rather than another form of payment [1.1].
Use of the Internet or Third Party Portal
If you are using a third-party portal to conduct or help facilitate your offering, the third-party portal must be properly registered with the state [2.1]. The third-party portal must file a certificate of good standing issued by the Vermont Secretary of State within thirty (30) days of the filing indicating the third-party portal is an entity formed under the laws of any State or Territory of the United States or the District of Columbia and authorized to transact business within Vermont [2.1]. Additionally, the third-party portal must provide the name, address, telephone number, and social security number for any of the third-party portal’s officers, directors, partners, members, twenty (20) percent shareholders, and promoters presently connected with the issuer in any capacity [2.1].
Conclusion
Vermont law allows the use of third-party payment processors by merchants. However, third-party payment processors must comply with the prohibition on imposing any requirement, condition, penalty, or fine in a contract with a merchant to inhibit the ability of any merchant to provide a discount or other benefit for payment through the use of a card of another electronic payment system, cash, check, debit card, stored-value card, charge card, or credit card rather than another form of payment. There are no specific requirements for third-party payment processors in Vermont. If you are using a third-party portal to conduct or help facilitate your offering, the third-party portal must be properly registered with the state.
Source(s):
Jurisdiction
Vermont