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

To accept payments online in Mississippi, you must comply with the state’s payment processing laws. The relevant law is MSCO 81-22-28, which requires a licensee to provide written notice to the Department of Banking and Consumer Finance at least ten days before utilizing a third-party payment processor [1.1]. The notice must contain the name and address of the third-party payment processor, a description of the services, a copy of the agreement or contract between the licensee and the third-party payment processor, and the highest daily amount of consumer funds to be held or transmitted. The third-party payment processor must submit to the department, upon request, the highest daily amount held or transmitted during the previous month. Additionally, each third-party payment processor must file with the commissioner a surety bond, issued by a bonding company or insurance company authorized to do business in Mississippi, in the principal sum of Fifty Thousand Dollars ($50,000.00) and in an additional principal sum of Fifty Thousand Dollars ($50,000.00) for each additional licensee it contracts with, but in no event shall the bond be required to be in excess of One Hundred Fifty Thousand Dollars ($150,000.00) [1.1].

Foreign banks must comply with Mississippi’s licensing requirements to transact business in the state [2.1]. To procure a license to establish and maintain a Mississippi state branch or Mississippi state agency, a foreign bank must submit an application to the commissioner, containing the same information required by the Board of Governors of the Federal Reserve System for an application to establish a branch or agency in the United States, an instrument irrevocably appointing the commissioner or his or her successors in office to be such foreign bank’s agent, representative and attorney to receive service of any lawful judicial and administrative process in accordance with this chapter, and additional information as the commissioner may require by regulation or order [2.5].

A Mississippi state branch or Mississippi state agency of a foreign bank licensed under this chapter may receive deposits, renew time deposits, close loans, service loans, and receive payments on loans and other obligations as an agent for any depository institution affiliate of such foreign bank, including branch, agency and other offices of the same foreign bank located in other states, generally in accordance with the same terms, conditions, procedures and requirements that are applicable under the laws and regulations of Mississippi to such agency activities that may be conducted by Mississippi state banks [2.3].

Therefore, to accept payments online in Mississippi, you must provide written notice to the Department of Banking and Consumer Finance at least ten days before utilizing a third-party payment processor, ensure that the third-party payment processor has filed a surety bond or other assets with the department, and comply with Mississippi’s licensing requirements if you are a foreign bank [1.1][2.1][2.5][2.3].

Source(s):
Jurisdiction

Mississippi