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

To accept payments online in Maine, you must comply with the requirements of the Maine Money Transmitter Act. According to Section 6103 of the Act [1.4]([1.4]), a person may not engage in the business of money transmission without a license. Therefore, you must obtain a license to operate as a money transmitter in Maine. Additionally, Section 6141 [1.3]([1.3]) requires registrants to disclose the fees charged to consumers for services regulated by the Act. Registrants must also conspicuously disclose the fees charged to consumers for its services at each business location. Furthermore, Section 6107 [1.1]([1.1]) requires each application for a license to be accompanied by a surety bond, irrevocable letter of credit, or other similar security device in the amount of $100,000. The security device must be in a form satisfactory to the administrator and must run to the administrator for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission, and payment of money in connection with the sale and issuance of payment instruments and transmission of money.

There are some limitations to be aware of. Section 6138 [1.2]([1.2]) requires that before a registrant may deposit, with any financial institution, a payment instrument that is cashed by a registrant, the item must be endorsed with the actual name under which the registrant is doing business. Registrants must also comply with all the laws of this State and any federal laws.

There are also exemptions to the Maine Money Transmitter Act. Section 6104 [1.8]([1.8]) states that the Act does not apply to the United States or any department, agency, or instrumentality of the United States, the United States Post Office, the State or any political subdivisions of the State, supervised financial organizations as defined in Title 9‐A, section 1‐301, subsection 38‐A as long as they do not engage in the business of issuing or selling payment instruments through authorized delegates who are not supervised financial organizations as defined in Title 9‐A, section 1‐301, subsection 38‐A, and the provision of electronic transfer of government benefits for any federal, state or county governmental agency as defined in Federal Reserve Board Regulation E, by a contractor for and on behalf of the United States or any department, agency or instrumentality of the United States, or any state or any political subdivisions of a state. Authorized delegates of a licensee, acting within the scope of authority conferred by a written contract as described in section 6118, are not required to obtain a license pursuant to this subchapter.

Please note that this is not an exhaustive list of requirements, and you should consult the Maine Money Transmitter Act and its regulations for a complete understanding of the requirements.

Source(s):
Jurisdiction

Maine