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

Requirements for Accepting Payments Online in Indiana

To accept payments online in Indiana, you must comply with the state’s payment processing laws. The requirements for accepting electronic payments vary depending on the type of payment and the entity accepting the payment. Here are some relevant statutes to consider:

Electronic Payment

Under IC 5-27-3-1, a governmental body may accept electronic payment for a service, a tax, a license, a permit, a fee, information, or any other amount due the governmental body for a transaction conducted through the computer gateway administered by the office of technology established by IC 4-13.1-2-1.

Governmental Bodies; Contracting with Provider Companies

IC 5-27-3-2 allows a governmental body to enter into a contract with a provider company to enable the governmental body to accept an electronic payment. A governmental body must use the provider company provided or specified by the office of technology established by IC 4-13.1-2-1 to accept an electronic payment submitted to the governmental body as payment for a fee-based service, license, or permit or for fee-based information obtained through electronic access.

Direct Payment Permit

IC 6-2.5-8-9 allows a retail merchant, manufacturer, or wholesaler who is registered under this chapter to apply for a direct payment permit. The department may issue the permit subject to such conditions as it deems reasonable. A permit issued under this subsection does not expire and is valid unless revoked under subsection (c). A person who possesses a direct payment permit may, at the time of a retail transaction, issue a direct payment certificate to a retail merchant instead of paying the state gross retail or use tax to that merchant. If the person issues a direct payment certificate, the person must then pay the tax on that purchase directly to the department. A retail merchant who receives a direct payment certificate has no duty to collect or remit the state gross retail or use tax on that transaction.

Electronic Payment Definition

“Electronic payment” means a payment by means of: (1) a credit card; (2) a debit card; (3) a charge card; (4) a stored value card; (5) a bank card; (6) an electronic check; or (7) an electronic funds transfer, including but not limited to: (A) Fed wire; and (B) Automated Clearing House [1.2].

Based on the above statutes, it appears that governmental bodies and retail merchants may accept electronic payments in Indiana, subject to certain requirements. However, it is important to note that other statutes may apply depending on the specific circumstances of the payment.

It is recommended that you consult with a legal professional to ensure compliance with all applicable laws and regulations [1.1][4.1][5.1][1.3][1.2].

Source(s):
Jurisdiction

Indiana