Can I accept payments online without violating payment processing laws in Colorado? What are the requirements?

Requirements for Accepting Online Payments in Colorado

To accept online payments in Colorado, you must comply with the state’s payment processing laws. The Colorado Uniform Commercial Code (CORS) governs payment orders and payment processing in the state.

According to CORS 4-4.5-203(a), an accepted payment order must be an authorized order of a customer identified as the sender. 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.

Therefore, to comply with Colorado payment processing laws, you must ensure that your payment processing system is secure and that only authorized individuals have access to it. You should also have written agreements with your receiving bank that limit their ability to enforce or retain payment of payment orders.

Additionally, you should ensure that your payment processing system complies with the security procedures outlined in CORS 4A-201 to provide assurance that payment orders are authentic and authorized.

Conclusion

To accept online payments in Colorado, you must comply with the state’s payment processing laws outlined in the Colorado Uniform Commercial Code. This includes ensuring that your payment processing system is secure, having written agreements with your receiving bank, and complying with the security procedures outlined in CORS 4A-201.

Jurisdiction

Colorado

• General