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

Requirements for Accepting Online Payments in Florida

To accept payments online in Florida, you must comply with the state’s payment processing laws. The Florida Statutes contain several provisions that regulate payment processing, including the Florida Uniform Commercial Code (UCC) and the Florida Money Transmitters’ Code.

Florida Uniform Commercial Code (UCC)

The UCC governs the transfer of funds between banks and other financial institutions. Under the UCC, a payment order is accepted when it is executed by the receiving bank [1.4]. A payment order can be rejected by the receiving bank if it does not comply with the agreement between the sender and the receiving bank [1.1]. If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for breach of the agreement to the extent provided in the agreement or in the UCC [1.6].

Florida Money Transmitters’ Code

The Florida Money Transmitters’ Code regulates money services businesses, including payment processors. To accept payments online in Florida, you must comply with the following requirements under the Florida Money Transmitters’ Code [2.1]:

  • File with the Office of Financial Regulation within 60 days after commencing business
  • Enter into a written contract with authorized vendors that sets forth the nature and scope of the relationship between the licensee and the authorized vendor, including the respective rights and responsibilities of the parties
  • Develop and implement written policies and procedures to monitor compliance with applicable state and federal law by its authorized vendors

Additionally, you must not structure transactions to evade reporting or registration requirements [3.1].

Verified Payment Orders

If you are accepting payment orders, you must comply with the Florida Uniform Commercial Code’s provisions on verified payment orders [1.2][1.3]. 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 [1.3]. 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 [1.3].

Cancellation and Amendment of Payment Order

If you are accepting payment orders, you must comply with the Florida Uniform Commercial Code’s provisions on cancellation and amendment of payment orders [1.5]. A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally, electronically, or in writing. If a security procedure is in effect between the sender and the receiving bank, the communication is not effective to cancel or amend the order unless the communication is verified pursuant to the security procedure or the bank agrees to the cancellation or amendment [1.5].

Records of Check Cashers and Foreign Currency Exchangers

If you are engaged in check cashing, you must maintain for the period specified in s. 560.1105 a copy of each payment instrument cashed. If the payment instrument exceeds $1,000, you must maintain or submit additional information, including customer files, personal identification, and thumbprints [4.1].

Conclusion

To accept payments online in Florida, you must comply with the Florida Uniform Commercial Code and the Florida Money Transmitters’ Code. You must also comply with the provisions on verified payment orders and cancellation and amendment of payment orders. If you are engaged in check cashing, you must maintain records of payment instruments cashed.

Source(s):
Jurisdiction

Florida