Ask Reggi Your Question Now
Can I accept payments online without violating payment processing laws in Montana? What are the requirements?
To accept payments online in Montana, you must comply with the Montana Code Annotated (MCA) Title 31, chapter 1, part 2, which regulates retail installment sales contracts and retail charge account agreements. According to MCA 31-1-501, a person who sells goods at retail to a retail buyer who promises to pay for such goods upon presentation of the bill therefor, may charge and collect a late payment charge not greater than 1 1/2% per month on all money due on all accounts from 30 days after the date on which the obligation of the buyer to pay is incurred. However, the late payment charge provided in this section may be charged only if at the time the obligation was incurred the seller did not intend to extend any credit beyond 30 days and any late payment of the obligation was unintended. Moreover, MCA 32-6-102 states that financial institutions that are subject to and in compliance with Regulation E of the federal Electronic Fund Transfer Act must be considered to be in compliance with the provisions of this chapter.
Therefore, to accept payments online in Montana, you must provide an itemized statement to your customers that clearly sets forth the charges for individual transactions made through your website, and you must comply with the late payment charge regulations set forth in MCA 31-1-501. Additionally, if you are a financial institution, you must comply with Regulation E of the federal Electronic Fund Transfer Act to be considered in compliance with MCA 32-6-102.
It is important to note that if you are engaging in the business of making deferred deposit loans, you must be licensed by the department and comply with the requirements set forth in MCA 31-1-705, including paying a license application fee, posting a bond, and obtaining separate licenses for each location at or from which deferred deposit loan transactions are conducted with consumers in Montana [2.1].
If you have any further questions or concerns, it is recommended that you consult with a legal professional.
Source(s):
Jurisdiction
Montana